Podcast Summary: Barron's Streetwise – "The Cheapest Stocks in America"

Date: April 10, 2026
Host: Jack Hough
Producer/Co-Host: Jackson Cantrell

Episode Overview

This episode of Barron's Streetwise dives into the "cheapest" stocks in the S&P 500, with host Jack Hough and producer Jackson Cantrell exploring what it actually means for a stock to be “cheap” (primarily by price-to-earnings, or PE, ratio), why certain stocks land in this category, and whether cheap stocks make good investments. The episode also explores the sweeping trend of replacing artificial food colorants with natural alternatives, highlighting a small cap with growth potential. Lively, humorous banter is woven throughout discussions of sometimes serious market developments.

Key Discussion Points

Opening Banter: Candy, Fireballs, and Food Dyes

(00:30 - 03:43)

• Jack opens with a humorous tale of his overindulgence in Fireball candies (not the liquor).
• Segues into a Wall Street stock pick related to food coloring: Sensient Technologies (SXT), which supplies colorants to food companies.
• Discusses the growing movement to replace artificial dyes with natural ones, with big upside for companies that can deliver vibrant natural colors.

Quote:
"There's this sweeping movement afoot now to replace artificial dyes in foods with natural ones. And there is good money to be made in that... Sentient is poised to cash in on that new volume."
— Jack Hough, (02:01)

The Natural Dye Boom & Sensient Technologies

(03:43 - 11:36)

• A stark difference between Froot Loops in the U.S. (bright, synthetic) and Canada (earthy, natural).
• Food manufacturers face a dilemma: how to keep food looking appealing with natural dyes, which are less vibrant and often require 8–10x as much by volume.
• Regulatory pressure and consumer demand in the U.S., with bans in some states and policy momentum.
• U.S. is behind Europe in adopting natural colorants (only 30% here vs. 80% in Europe).
• Sensient’s history: from liquor to yeast to flavors and colors for food, cosmetics, and drugs.
• UBS projects Sensient’s big growth (10% a year over 5 years, up from 3%/year until now).
• Details on colorant science: beets, proprietary “Uber Beet” technology, and carmine (extracted from cochineal insects).
• Lighthearted detour on Jackson’s childhood as a British Redcoat (relevant to carmine dye history).

Quote:
"Carmine has been around for ages. In fact, the British, the Redcoats used it for their uniforms during the American Revolution, and it's still used widely today, including in foods...it turns out that it's made from something called...cochineal insects."
— Jack Hough (10:05)

The 10 Cheapest S&P 500 Stocks – Method & Performance

(13:11 - 15:28)

• Jack emphasizes that buying the lowest PE stocks isn’t a sound standalone strategy, but it's interesting given their recent outperformance.
• Equal-weighting the 10 lowest PE S&P 500 stocks would have yielded returns 70% (one year), 49 points over the S&P with dividends, and outperformance over 2, 5, and 10 years.

Quote:
"If you pulled up the 10 lowest PE stocks a year ago...you'd have made 70%. With dividends, you'd have beaten the S&P 500 by 49 points...Ten years ago...you beat the market by more than 300 points. That's nuts. I think it also has to be a fluke."
— Jack Hough (14:06)

Case Studies & List Highlights

1. Micron Technology (MU): The Cheapest, Hottest Stock

(15:28 - 17:47)

• Trades at 4.4x forward earnings despite rallying 520% over the past year.
• This is due to memory chips for AI: "earnings multiplying rapidly."
• Investors remain suspicious; stock has been "climbing a wall of disbelief."

Quote:
"How can a stock that's up 520% a year still trade at 4.4 times earnings? ...Earnings are just multiplying rapidly for this company because of the increased demand and the high prices."
— Jack Hough (15:33)

2. General Motors (GM): Cheap & Cash-Generating

(17:48 - 19:10)

• Trading at 6.2x earnings; up 68% in a year, 127% in three.
• Focus on expensive trucks/SUVs, strong margins, serving higher-income buyers.

3. Global Payments & Fiserv: Card Processing, Low Enthusiasm

(20:54 - 22:31)

• GPN at 4.7x earnings; Fiserv at 7x.
• "In the least exciting part of fintech" — merchant payment processing.
• Heavily indebted but generating free cash; investors unenthusiastic.

4. Prudential Financial & Everest Group: Insurance

(22:31 - 23:57)

• Prudential at 6.9x; Everest at 6.3x.
• Insurance companies better judged by price-to-book, not PE.
• Prudential highlighted for its 5.8% dividend yield.

5. Charter Communications: Cable Under Siege

(23:57 - 25:58)

• 5.2x earnings; suffering from cord-cutting and telco competition in broadband.
• Fiber optics from telecoms pose a new threat.

6. Gen Digital: Cybersecurity, Not a Star Performer

(25:58 - 27:11)

• 6.8x earnings. Result of a merger between Avast and Norton Lifelock.

• Heavily indebted, not appreciated in the AI/cybersecurity boom—more downside recently.

• Sidebar: AI disruption in cybersecurity (26:04)

  • Anthropic's new model "Mythos" found dangerous bugs in legacy software. Release delayed for safety; only select partners testing. Shows the AI “friend or foe” tension for the sector.

Quote:
"Investors are having a hard time figuring out whether AI helps or hurts and maybe it does both, right?"
— Jack Hough (26:43)

7. AES: Utility, Now Off the List

(27:11 - 27:33)

• 5.0x earnings; recently agreed to be bought out.

8. Viatris: The EpiPen Saga

(27:37 - 30:52)

• Product of a merger between Myelin (infamous for EpiPen price hikes) and Pfizer's "least exciting" division, Upjohn.
• Loathed due to price hike history. Now generating cash, aims for slight earnings growth after years of shrinkage.

Quote:
"It began trading in November 2020. It might as well have been named Hate Sponge Incorporated. I mean, maybe it's just me. I think this was, was one of the most loathed companies out there... they multiplied the price [of EpiPens] sevenfold in under a decade."
— Jack Hough (27:51)

Memorable Moments / Notable Quotes

• On price-to-earnings ratios:
  "I like to look once in a while for the things that are the most broken in the stock market and try to figure out why they're broken and whether they're going to stay broken."
  — Jack Hough (02:12)

• On investing in the cheapest stocks:
  "This is not, I repeat, not a sound investment strategy... but the second thing I'll tell you is it's worked pretty darn well recently."
  — Jack Hough (13:13)

• On the cable industry:
  "You like cable? I was gonna say. I don't think I've ever heard those three words together like that."
  — Jack Hough (32:19)

Lighthearted Banter

• Jack and Jackson's extended riff on Fireball candies, food dyes, and “uncrustables.”
• Nostalgic exchange about kids' TV watching, cable reality shows ("Wicked Tuna"), and even a Dave & Buster's Wicked Tuna arcade game.
• Jackson's story about dressing as a British Redcoat for a school project, linking to historical uses of the carmine dye.

Rapid-Fire List Recap & Stock “Picks”

(30:52 - 34:21)

• Both hosts (jokingly) reluctant to pick from the apparent dogs of the S&P.
• Jack leans to Viatris as a “safest pick from a bunch of picks that are definitely not safe,” but with a disclaimer not to treat this as advice. He also likes Prudential's dividend and muses on the boring appeal of Global Payments.
• Jackson expresses nostalgia for cable TV, hinting that sometimes the most “broken” bets can surprise.
• Wraps up with playful talk about fishing video games and AI-generated Eagles parodies (“Can’t Hide Your Lyon Eyes” about data throughput and Micron stock).

Timestamps for Key Segments

• Fireball story, artificial dyes, Sensient Technologies: 00:30 – 11:36
• PE ratios, cheap stocks strategy: 13:11 – 15:28
• Micron Technology: 15:28 – 17:47
• General Motors, historical performers: 17:48 – 19:10
• Global Payments, Fiserv (payment processors): 20:54 – 22:31
• Insurance firms (Prudential, Everest): 22:31 – 23:57
• Charter Communications (cable): 23:57 – 25:58
• Gen Digital, AI & cybersecurity: 25:58 – 27:11
• AES (utility): 27:11 – 27:33
• Viatris (EpiPen, drug mergers): 27:37 – 30:52
• Stock “picks,” cable TV nostalgia: 30:52 – 34:21

Overall Tone & Style

The episode blends breezy, humorous banter with accessible, data-driven stock analysis. The hosts maintain a self-aware, skeptical tone toward Wall Street dogma—mixing skepticism about “cheap” stock screens with clear explanations for outperformance, and practical risk caveats.

Bottom Line

This episode is a must-listen for investors curious about low PE strategies, changing industry trends, and the intersection of consumer preferences and investment opportunities (from food dyes to AI chips). Jack and Jackson offer up colorful stories, straight talk, and memorable market lessons—without taking themselves too seriously.