Chevron Corporation (CVX), DIRECTV (DTV) & More: Three Stocks with Low P/E Ratios and High Growth Rates

In today’s market, cheap stocks are hard to find. The Dow Jones Industrial Average recently set an all-time closing high, and the S&P 500 is not far behind. As a result, value investors who seek meaningful margins of safety from their stocks are frustrated by the lack of bargains available. If you set out to not only find cheap stocks, but cheap stocks that are also growth stocks, you’d have a tough task ahead of you. Fear not, fellow investors: there are a few diamonds in the rough.

Growth that shoots the lights out

Chevron Corporation (NYSE:CVX) is a $233 billion energy giant, which may make you skeptical of its growth potential. You might be surprised to learn that Chevron’s earnings have skyrocketed in the aftermath of the most recent recession. As global economies, particularly those among the emerging nations, resumed their nearly unquenchable thirst for energy, Chevron Corporation (NYSE:CVX) delivered. Over the past three years, Chevron has grown diluted earnings per share by 37%, compounded annually.

DIRECTV (NASDAQ:DTV) provides digital entertainment in the United States and Latin America. Even though cable and media are highly competitive industries, DirecTV’s financial performance over the past few years speaks for itself. The company has grown its diluted earnings per share at an astounding 69%, compounded annually since 2009.

DIRECTV (NASDAQ:DTV) has the subscriber numbers to back up its fantastic performance. The company added 761,000 net subscribers in the most recent quarter. Particular strength came from DirecTV’s Latin American operations, where the company added 2.4 million net subscribers during 2012.

Of course, it’s tough to watch television without electricity, and that’s where PPL Corporation (NYSE:PPL) comes in. PPL provides electricity in the United States and the United Kingdom. While an electric utility certainly doesn’t sound exciting, there’s a fantastic growth story here underneath the surface. PPL has grown its diluted earnings per share by 34%, compounded annually since 2009.

Growth at a (very) reasonable price

Making matters even better, each of these companies is attractively priced, when compared to the broader market. Chevron Corporation (NYSE:CVX) trades at only nine times its 2012 diluted earnings per share. Meanwhile, both DIRECTV (NASDAQ:DTV) and PPL trade for trailing price-to-earnings ratios of less than 12. The S&P 500 currently sports a P/E ratio in the high teens.