Barron's Streetwise The Cheapest Stocks in America
Apr 10, 2026
A lively mix of market sleuthing and quirky detours. Jack screens the S&P 500 for its 10 lowest P/E stocks and explains why some cheap names later surged. He digs into food color debates, natural dye opportunities, and the odd world of insect-derived red pigments. Expect stories about candy, corporate turnarounds, and which low-P/E sectors look interesting.
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Lowest PE Stocks Have Outperformed Historically
- Screening the S&P 500 for the 10 lowest P/E stocks has outperformed the market historically, including beating the S&P by over 300 percentage points over ten years.
- Jack cautions this is a simplistic signal and not a sound standalone investment strategy.
Micron's Low PE Is Driven By Surging Earnings
- Micron (memory chips) trades at about 4.4 times earnings despite a 520% one-year gain because earnings (the denominator) surged from ~$8 to forecasts of $56–$93 per share.
- Rapid AI-driven memory demand can inflate earnings faster than price, keeping P/E low temporarily.
Structural Shifts Can Rescue Cheap Stocks
- Structural industry shifts can turn low-PE companies into strong performers, exemplified by Western Digital (hard drives) and United Rentals (equipment rental).
- The moves reflect secular demand changes: data-center storage needs and a shift to renting equipment.