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4 Stocks That Are Trading Far, Far Too Cheaply: AstraZeneca plc, Old Mutual plc, Aberdeen Asset Management plc And Rolls-Royce Holding PLC

Today I am looking at four blue-chip barnstormers that should be attracting glances from all savvy value hunters.

AstraZeneca

I believe that pills play AstraZeneca (LSE: AZN) is a great way to cotton onto terrific long-term earnings growth. Sure, the issue of exclusivity losses across key products like Nexium and Crestor are sure to trouble the London business for a little while longer. But with the firm’s product pipeline already showing signs of significant improvement, and AstraZeneca leading the pack in terms of developing market demand, I fully expect the top-line to surge beyond the medium term.

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For 2015 the pharma giant is expected to see earnings edge 3% higher, although a 2% dip is predicted for the following year. Despite this relative stagnation, these figures still leave the business dealing on P/E ratios of 15.1 times and 15.3 times for 2015 and 2016 respectively, around the benchmark of 15 times that represents attractive value. And a predicted dividend of 290 cents per share through to the close of next year yields an impressive 4.4%.

Old Mutual

Supported by its unrivalled exposure to promising African markets, I reckon life insurer Old Mutual (LSE: OML) is in great shape to enjoy resplendent sales growth. The London-headquartered firm is a major player in the regional engine of South Africa, and remains committed to expanding its footprint across the continent — just this month Old Mutual secured a majority stake in UAP Holdings, the financial services provider centred on Central and East African markets.

The City expects Old Mutual to benefit massively from the relatively-low market penetration of these regions, and earnings expansion of 9% and 11% is pencilled in for 2015 and 2016 correspondingly, creating brilliant P/E readings of 10.2 times and 9.7 times. Such solid growth is expected to translate through to the dividend, and payments of 9.7p per share and 10.6p are predicted for 2015 and 2016 correspondingly. Consequently Old Mutual sports vast yields of 4.7% and 5.2% for these years.

Aberdeen Asset Management

With investor activity firmly back on the turn, I believe that Aberdeen Asset Management (LSE: ADN) can look forward to splendid earnings growth once again. The firm raised eyebrows this month by deciding to raise £100m via a preference share issue to Mitsubishi UFJ Trust and Banking Corporation, with the fundraising designed “to meet customer needs and with a view to generating organic growth in those funds over time.”

The move naturally raised questions over Aberdeen Asset Management’s balance sheet, but the City believes the firm’s remains financially robust enough continue to hike the dividend, with estimated payouts of 19.9p per share for the year concluding September 2015, and 22p for 2016 producing jumbo yields of 4.9% and 5.4%. Indeed, the fund manager’s brilliant dividend outlook is underpinned by anticipated earnings growth of 3% and 8% in 2015 and 2016 respectively, projections that create decent P/E multiples of 12.4 times and 11.4 times.

Rolls-Royce Holding

With civil passenger numbers continuing to head through the roof, I believe that planebuilders like Boeing and Airbus can look forward to stapling fresh pages into their already-bulging order books amid rocketing airline profits. This is of course great news for Rolls-Royce (LSE: RR), whose Trent engines are a popular pick for flyers across the globe, while its TotalCare maintenance packages also set the industry standard.

Constrained spend in the oil market is expected to send earnings at ‘Double R’ 10% lower in 2015, although this still leaves the business dealing on a great earnings multiple of 15.3 times. And the ratio falls to 14.7 for next year amid expectations of a 6% bottom-line bounce. And Rolls-Royce’s bubbly long-term outlook is expected to keep dividends rumbling higher, with forecast payouts of 23.7p for 2015 and 26p for next year producing tasty yields of 2.6% and 2.9%.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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