Investors who want to increase their chances to unearth high-quality companies may find value in screening for stocks whose market capitalization exceeds $5 billion, but that still trade at not more than 1.5 times their book value.
The following stocks have also received positive recommendation ratings in the hold to buy range from sell-side analysts on Wall Street.
A.P. Moller Maersk
The first company with the above criteria to consider is A.P. Moller Maersk A/S (AMKAF, Financial). Shares of the Danish transportation and logistics company closed at $1,428.61 on Friday for a market capitalization of $29.28 billion.
The price-book ratio of 1.11 is better than the industry median of 1.14. It tops 429 peers out of a total of 829 competitors operating in the marine shipping industry.
The share price has dropped 22% in the past 5 years through Dec. 13, but it is still not cheap according to the Peter Lynch chart.
GuruFocus assigned a rating of 5 out of 10 for the company’s financial strength and the same for its profitability.
On April 8 earlier this year, A.P. Moller Maersk paid an annual cash dividend of 150.000 Danish Krones (about $22.53 USD) per common share to its shareholders, generating a forward dividend yield of 1.58% as of Dec. 13. A.P. Moller Maersk has paid annual dividends for 21 years.
Wall Street suggests holding shares of A.P. Moller Maersk A/S.
China Southern Airlines
The second company that meets the above criteria is China Southern Airlines Co. Ltd. (ZNH, Financial). Shares of the Guangzhou-based provider of airline transportation services closed at $32.92 on Friday for a market capitalization of $8.08 billion.
The price-book ratio of 1.33 is higher than the industry median of 1.14 but it still outperforms a sizeable group of 465 out of a total of 829 companies that operate in the airlines industry.
The share price has grown 34.2% in the past 5 years through Dec. 13, but it is still trading below the earnings line, suggesting that the stock is undervalued.
GuruFocus assigned a rating of 3 out of 10 for the company’s financial strength and 7 out of 10 for its profitability.
On Aug. 5 earlier this year, China Southern Airlines paid an annual cash dividend of 36.5 cents per common share, producing a 1.11% forward dividend yield as of Dec. 13. The company has been paying annual dividends for eight years.
Wall Street suggests an overweight recommendation rating for shares of China Southern Airlines, which means that analysts believe this stock will outperform either the industry or the overall market within 12 months.
Grupo Televisa
The third company with the above criteria is Grupo Televisa S.A.B. (TV, Financial). Shares of the Mexican broadcaster closed at $11.87 on Friday for a market capitalization of $6.84 billion.
The price-book ratio of 1.43 is slightly better than the industry median of 1.47. It tops 452 out of 875 competitors in the broadcasting industry.
The stock is down about 63.5% over the past 5 years through Dec. 13. Regardless of the sharp downturn, the share price is not trading cheaply as it is significantly above the Peter Lynch earnings line.
The stock has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 8 out of 10.
On June 10 earlier this year, Grupo Televisa S.A.B. paid an annual cash dividend of 8.9 cents per common share, generating a 0.75% forward dividend yield as of Dec. 13. Grupo Televisa S.A.B. has paid dividends for 17 years, albeit with a few interruptions.
Wall Street recommends an overweight rating for this stock.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Stocks to Enhance the Quality of Your Portfolio
- 3 Stocks With Fast-Growing Earnings
- 3 High-Yield Stocks Raise Dividends
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