Finding a “cheap” stock isn’t as simple as just screening for companies with a lower valuation than the market’s. If that approach worked, then you could pick any stock with a price-to-earnings ratio below 24, which currently covers over half of the S&P 500.
A more targeted method — that’s also likely to yield better results — is to compare stocks against peers in the industry and choose those that are cheap relative to competitors.
Using that approach, here are two companies that look like bargain buys for long-term investors.