3 Low-P/E Stocks That Look Cheap as the S&P 500 Trades Near Record Highs
Sohu.com (SOHU), Onity Group (ONIT), and TriMas (TRS) trade at low P/E ratios (1.6x, 2.3x, 1.6x respectively) despite showing signs of business strength. SOHU reported 7% YOY revenue growth and improved profitability. ONIT saw 24% YOY revenue growth and 64% origination growth but faced servicing headwinds. TRS showed 1.6% YOY sales growth and 29% operating profit increase, with raised earnings guidance.
How this was made
The 30-second read
Why it matters
Each company presents a distinct catalyst: earnings turnaround for SOHU, originations growth for ONIT, and guidance lift for TRS.
Market read
The fresh earnings and guidance data provide actionable insight for value‑focused traders amid a high‑valuation market.
What to watch
Potential impact of rising interest rates on mortgage servicing profitability and geopolitical tensions affecting Chinese tech earnings.
Background
The article surveys three low‑P/E stocks as the S&P 500 reaches record highs, emphasizing value opportunities.
Ticker impact
Q2 2026 earnings show 7% revenue growth and a swing to GAAP profit, with a P/E of 1.6x.
Potential 10‑15% rally if market re‑prices the low multiple.
Earnings beat and profit turnaround are fresh facts; the stock is still cheap.
Q2 2026 report shows 64% originations growth to $15.5 bn but a 60% drop in servicing pre‑tax income; P/E 2.3x.
Mid‑term upside of 8‑12% if originations sustain.
Mixed earnings data provides a nuanced view; investors may weigh growth versus margin pressure.
Q2 2026 results raise full‑year EPS guidance to $1.60‑$1.70 and report 29% operating profit increase.
Possible 12‑18% upside if guidance is fully priced in.
Guidance upgrade is a primary disclosure with material impact on valuation.
Market effects
Highlights undervaluation opportunities in internet gaming, mortgage servicing, and industrial packaging sectors.
Shows that Chinese internet firms and US financial services can present value plays despite broader market highs.
Reinforces a broader theme of low‑multiple stocks outperforming in a high‑valuation environment.
Counterpoint
The low multiples may reflect hidden risks—regulatory pressure on Chinese internet firms, servicing margin compression, and cyclical demand for industrial packaging.
Key entities
- companySohu.com Inc.
Chinese internet and gaming firm reporting Q2 profit.
- companyOnity Group
Mortgage loan servicer with strong originations growth.
- companyTriMas Corp.
Industrial packaging company raising EPS guidance.
