3 Stocks From the Bargain Basement Amid Soaring U.S. Market PE Multiples

investing.com:

The price-to-earnings ratio is a cornerstone concept of fundamental analysis, playing a crucial role in gauging the appeal of a company’s valuation. Although limited in its insights when used in isolation, it serves as an excellent initial screening tool.

In this analysis, we'll spotlight three companies from the S&P 500 index that showcase a low P/E ratio.

Among them, Valero Energy (NYSE:VLO) stands out as particularly compelling. Its P/E (4.6x) is notably the lowest among all S&P 500 companies, making it an intriguing contender.

Equally noteworthy is Marathon Petroleum (NYSE:MPC), whose stock price has impressive long-term upside potential and a low P/E ratio of 5.1x, despite the recent rally.

Additionally, with a P/E ratio of 6.6x, The Mosaic Company's (NYSE:MOS) fair value index might serve as a signal for the potential end of a downtrend that has spanned over a year.

Let's take a deeper look into each of the aforementioned companies to better understand their future potential.

In the final days of July, Valero Energy unveiled its Q2 results, sparking pleasant surprises in terms of earnings per share.

This unexpected performance not only set the stage for further upward momentum but also echoed the company's management during a conference call following the financial data release. The management spoke in an upbeat tone about wholesale sales and refining capacity:

«Our product demand demonstrated robustness, and our US wholesale system achieved a remarkable milestone by exceeding one million barrels per day in May and June. The new coke plant has not only expanded the refinery's capacity but has also enhanced its capability to manage increased volumes of heavy crude and residual feedstock.»

The management's optimistic