5 low-P/E stocks brokers think are buys

Markets don’t like surprises. Neither do investors, and there are plenty of them around at present.

The Australian economy is grappling with the prospect of yet another rate rise, declining productivity and declining property markets, while global markets are being buffeted by renewed escalation in the US-Iran war. The conflict has pushed oil prices and bond yields higher, while weighing on equity markets.

Volatility, however, is often a good time to hunt for bargains – if you stick to the fundamentals. Share prices can move sharply on global news even when little has changed at the underlying business. With Australian reporting season also just behind us, investors have a fresh set of financial results against which to assess those valuations.

There are a range of different ways fund managers use to assess whether a stock could be a value opportunity. For the purpose of this article, low P/E is used, based off Market Index’s Low PE scan with data as at close 4 September 2026. It will also revisit the low P/E picks from April’s scan to see how they have performed.

A quick refresher on low P/E as a measure

P/E = current share price ÷ earnings per share. The current share price used in this article is based on market close 10 September 2026.

It shows how much investors are paying for each dollar of a company’s earnings. For example, a P/E of 14.5x would mean you pay $14.50 for every $1 of earnings.

Market Index uses trailing 12-month earnings – any future outlook is not factored in the ratio. Other companies may calculate their P/E ratios differently, such as using forward earnings or a blend of historical and forward earnings.

What is considered a high or low P/E ratio can vary based on the sector a company operates in, with traditional value sectors generally trading on lower P/E ratios compared to growth sectors.

The Australian stock market is currently trading at a P/E of 21.63x*.

This is slightly lower than in April (22.86x), but still well above the long-term average of around 15x, suggesting the market is expensive relative to its historical valuation. To give some further context, BHP is trading at a P/E of 23.68x (it was 17.54x back in April), while Commonwealth Bank is trading at 24.68x (compared to 27.81x in April).

*As at July 2026, the most recent available data. 

Revisiting April’s low P/E picks

Scroll across the chart to see current P/E, EPS, performance, market cap and broker consensus.

Source: Market Index, 6 April and 10 September 2026. Broker consensus checked 10 September 2026. 

All five stocks have experienced some price gains since April, with Ora Banda and Credit Corp the standouts. All retain favourable broker consensus ratings, except Virgin Australia, for which no consensus rating is currently available.

Considering one-year performance paints a different picture. Only Ora Banda and West African Resources are up on the year, with the other stocks in the red.

Both companies are gold miners and have benefited from the performance of gold. While gold prices fell in the early part of 2026 they have still gained 11.27% for the 12 months to 10 September (based on performance in AUD) and the miners would have benefited from the record-high prices in late 2025.

The low P/E high conviction picks for September

Only three stocks in the screen carry a Strong Buy consensus, so I have also included two rated Buy. The resulting shortlist contains the lowest-P/E stocks carrying either a Buy or Strong Buy broker consensus. You’ll notice the list is dominated by resources, with West African Resources reappearing in the list. Credit Corp Group also reappears.

Source: Market Index, 10 September 2026. Broker consensus checked 10 September 2026.

1. Ampol (ASX: ALD) 

Ampol had a strong half, supported by unusually high refining margins. It benefitted from geopolitics disrupting supplies and government-backed fuel purchased in Australia and New Zealand. These should be considered temporary tailwinds, however, it is still trading at a cheap P/E relative to its recent earnings.

Back in a July episode of Buy Hold Sell, Alphinity’s Stephane Andre nominated Ampol as a Buy, highlighting the EG acquisition as a potential source of upside, new opportunities in terms of fuel storage post the US-Iran conflict pressures and the prospect for infrastructure-like commercial agreements.

By contrast, Datt Capital’s Emanuel Datt reduced exposure in the lead-up to reporting season noting that Ampol is a ‘quality franchise, but the earnings base is at risk outside of improved refining operations.”

2. Aeris Resources (ASX: AIS) 

Aeris Resources is a mid-tier base and precious metals producer, with copper the dominant exposure. In the latest reporting season, its revenue jumped 22%, while EBITDA rose 81% backed by higher commodity prices and stronger operations. It used the proceeds of a capital raising to repay its loan from Washington H. Soul Pattinson.

It is spending heavily on construction and waste stripping at its Constellation project in NSW across FY27. It is also increasing exploration spend across copper and gold.

Morningstar has rated Aeris three stars and views the shares as expensive relative to fair value.

3. Credit Corp Group (ASX: CCP) 

Credit Corp Group is a debt buyer and collector, operating in Australia, New Zealand and the US. It also offers consumer lending via brands like Wallet Wizard.

While it offered solid annual performance, with a 12% increase in NPAT, its FY27 guidance was slightly below market expectations, and the shares were hit accordingly. Credit Corp dropped its takeover bid for Humm Group a few months back, but its CEO has highlighted that they are still considering options for Humm.

Seneca’s Ben Richards notes that Credit Corp has suffered from Bennelong Funds Management’s forced sales (it has been a net seller of other stocks too) and he anticipates a “catch-up trade for the business” once Bennelong’s forced selling ends and the market refocuses on the company’s fundamentals.

4. Greatland Resources (ASX: GGP) 

The gold and copper producer operates one of Australia’s largest gold-copper mining complexes (Telfer) and is developing a nearby gold-copper project (Havieron).

Argonaut’s David Franklyn highlighted Greatland Resources as one of the top contributors to Argonaut’s performance since inception.

Morningstar notes that it is trading around its estimate of fair value and has a high level of uncertainty attached to it. Morningstar points to Greatland’s strong profitability as a positive for resilience and future cash generation. However, it also notes that gold has performed strongly over the past year and that this may not persist.

5. West African Resources (ASX: WAF)

The gold miner reported record gold production in the second quarter of 2026 and benefited from high gold prices across the year (noting that these have dropped significantly from highs in late 2025).

Future performance will depend on several factors, including maintaining production, exploration results and the gold price. You can read more about gold and its drivers in this article from Livewire’s Carl Capolingua which also references Greatland Resources and its peers.

Morningstar notes that West African Resources doesn’t pay dividends, compared to many of its peers, but is highly profitable. Like Greatland Resources, Morningstar is concerned about the sustainability of the gold bull run affecting West African Resources' performance.

Caveat emptor

While the brokers hold conviction on these stocks and they are trading at low P/Es, the resources stocks in particular operate in a highly uncertain environment. These are not your sleep-at-night value picks and they are affected by geopolitics and a range of other drivers.

Any assessment should also consider the outlook for their respective industries and how each company compares with its peers.

Whether or not they are bargains for you will also depend on your own needs, circumstances, goals and your existing portfolio. 

I’ll revisit these companies in a few months to see how they have performed since, and which new companies may rank in the charts for further research. Until then, happy investing and don't forget your due diligence.