Organon leads ultra-low P/E stocks at 1.8x as small-cap stocks face volatility

[Black Bull and Bear]
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Small-cap outperformance has narrowed over the last couple of weeks as investor caution increased, with volatility and geopolitical risk weighing on risk appetite and narrowing the performance gap vs. large caps.

In light of this, below is a list of the top 10 small-cap stocks ranked based on their lowest forward price-to-earnings ratio.

The list is topped by Organon & Co. (OGN [https://seekingalpha.com/symbol/OGN]), with a ratio of 1.84. XPLR Infrastructure (XIFR [https://seekingalpha.com/symbol/XIFR]) and Alight, Inc. (ALIT [https://seekingalpha.com/symbol/ALIT]) are next, with Ironwood Pharmaceuticals (IRWD [https://seekingalpha.com/symbol/IRWD]) and Cable One, Inc. (CABO [https://seekingalpha.com/symbol/CABO]) rounding out the rest of the top five. Embecta Corp. (EMBC [https://seekingalpha.com/symbol/EMBC]), Contango Ore (CTGO [https://seekingalpha.com/symbol/CTGO]), and Pagaya Technologies (PGY [https://seekingalpha.com/symbol/PGY]) are among the other stocks on the list as well.

The ratios on this list range from 1.84 to 3.89, representing a variety of small-cap companies across different industries. Most stocks on the list carry strong valuation grades of A or A+, with Contango Ore being a notable exception with a C+ grade.

P/E FWD (forward price-to-earnings ratio) is a valuation multiple that compares a stock’s current share price to expected (forward-looking) earnings per share, typically based on analysts’ consensus estimates for the upcoming year.

Here is the list:

*
Organon & Co. (OGN [https://seekingalpha.com/symbol/OGN]), P/E fwd ratio: 1.84, Valuation grade: A

*
XPLR Infrastructure, LP Common Units (XIFR [https://seekingalpha.com/symbol/XIFR]), P/E fwd ratio: 2.01, Valuation grade: A+

*
Alight, Inc. (ALIT [https://seekingalpha.com/symbol/ALIT]), P/E fwd ratio: 2.21, Valuation grade: A+

*
Ironwood Pharmaceuticals, Inc. (IRWD [https://seekingalpha.com/symbol/IRWD]), P/E fwd ratio: 2.41, Valuation grade: A

*
Cable One, Inc. (CABO [https://seekingalpha.com/symbol/CABO]), P/E fwd ratio: 2.58, Valuation grade: A+

*
Embecta Corp. (EMBC [https://seekingalpha.com/symbol/EMBC]), P/E fwd ratio: 3.17, Valuation grade: A+

*
Contango Ore, Inc. (CTGO [https://seekingalpha.com/symbol/CTGO]), P/E fwd ratio: 3.23, Valuation grade: C+

*
Invesco Mortgage Capital Inc. (IVR [https://seekingalpha.com/symbol/IVR]), P/E fwd ratio: 3.61, Valuation grade: Not Covered

*
Pagaya Technologies Ltd. (PGY [https://seekingalpha.com/symbol/PGY]), P/E fwd ratio: 3.86, Valuation grade: A+

*
Integra LifeSciences Holdings Corporation (IART [https://seekingalpha.com/symbol/IART]), P/E fwd ratio: 3.89, Valuation grade: A

Small-Cap ETFs: (IJR [https://seekingalpha.com/symbol/IJR]), (IWM [https://seekingalpha.com/symbol/IWM]), (VB [https://seekingalpha.com/symbol/VB]), (VBR [https://seekingalpha.com/symbol/VBR]), (VBK [https://seekingalpha.com/symbol/VBK]), (SCHA [https://seekingalpha.com/symbol/SCHA]), (SPSM [https://seekingalpha.com/symbol/SPSM]), and (DFAS [https://seekingalpha.com/symbol/DFAS])

MORE ON SMALL-CAP STOCKS

* Everyone Thinks The Bottom Is In: That's Precisely The Problem [https://seekingalpha.com/article/4883623-everyone-thinks-bottom-is-in-thats-precisely-problem]
* The Doomsday Bears Will Be Wrong Again [https://seekingalpha.com/article/4883571-doomsday-bears-will-be-wrong-again]
* The S&P 500 Is Becoming A Terrible Investment For Long-Term Investors [https://seekingalpha.com/article/4883017-the-s-and-p-500-is-becoming-a-terrible-investment-for-long-term-investors]
* Small-cap high-quality stocks amid rising volatility [https://seekingalpha.com/news/4565917-small-cap-high-quality-stocks-amid-rising-volatility]
* Organon trades in red for seven straight sessions [https://seekingalpha.com/news/4562821-organon-trades-in-red-for-seven-straight-sessions]