Analysts Share Their Low Forward P/E Picks

On CNBC's Trading Nation, Boris Schlossberg of BK Asset Management and Jonathan Krinsky of MKM Partners shared their view on five stocks that have low forward price to earnings.

Endo International plc - Ordinary Shares (NASDAQ: ENDP), General Motors Company (NYSE: GM), Gilead Sciences, Inc. (NASDAQ: GILD), Mylan NV (NASDAQ: MYL) and Delta Air Lines, Inc. (NYSE: DAL) have the lowest forward P/E among the S&P 500 components and Schlossberg thinks the best way to trade them is to buy a small portion of each stock and see which one can trade higher. He explained that this is a "lottery ticket" trade and it's hard to tell which stock is going to bounce.

Krinsky believes that the most of the stocks in the group are cheap for a reason and their charts are in a downtrend. General Motors is the only stock of the five that looks interesting to him. He noticed that it has recovered from its lows after forming a double bottom pattern on its chart and it is now trading close to its resistance of $32. He wants to initiate a small long position in General Motors in the anticipation of a break out above resistance. If the stock closes above the resistance, a move to $38 would be possible, thinks Krinsky.