Picking stocks with compelling Shiller price-earnings ratios raises the likelihood to discover value opportunities, in my opinion. Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 Index's historical average of 16.89 as of the writing of this article. The Shiller price-earnings ratio is calculated as the last closing share price dividend by 10-year average inflation-adjusted earnings per share.
Phillips 66 Partners LP
The first company investors may want to consider is Phillips 66 Partners LP (PSXP, Financial), a Houston, Texas-based oil and gas midstream company.
The company has a Shiller price-earnings ratio of 13.35, which is the result of a share price of $34.89 at close on Monday and 10-year average inflation-adjusted earnings per share of approximately $2.61 as of the September 2021 quarter. The industry has a median of 14.77 for the Shiller price-earnings ratio.
The share price has risen by 27.43% over the past year for a market capitalization of $7.85 billion and a 52-week range of $24.21 to $42.17.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and 7 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of hold with an average target price of $39.71 per share.
Cadence Bank
The second company investors may want to consider is Cadence Bank (CADE, Financial), a Tupelo, Mississippi-based regional bank serving consumers, businesses and corporations through approximately 400 branch offices located in the South and Midwest regions of the U.S.
The company has a Shiller price-earnings ratio of 16.04, which is the result of a share price of $29.83 at close on Monday and 10-year average inflation-adjusted earnings per share of about $1.86 as of the September 2021 quarter. The industry has a median of 13.45 for the Shiller price-earnings ratio.
The share price has risen by 11% over the past year for a market capitalization of $5.59 billion and a 52-week range of $24.87 to $35.59.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $35.75 per share.
VEON Ltd
The third company investors may want to consider is VEON Ltd. (VEON, Financial), a Dutch provider of telecommunication services.
The company has a Shiller price-earnings ratio of 13.27. The ratio is the result of a share price of $1.77 at close on Monday and 10-year average inflation-adjusted earnings per share of $0.13 as of the September 2021 quarter. The industry has a median of 17.15 for the Shiller price-earnings ratio.
The share price has increased 17.35% over the past year, determining a market capitalization of $3.02 billion and a 52-week range of $1.45 to $2.38.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average target price of $2.44 per share.
