1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2085) 

3 Low Price-Book Stocks for Value Investors to Consider

Petroleo Brasileiro SA Petrobras tops the list

January 02, 2020 | About:

Investors who are interested in enhancing their possibilities to unearth high-quality companies may find value in screening for stocks whose market capitalization exceeds $10 billion, but that still trade at not more than 1.5 times the book value.

The following securities have also received positive recommendation ratings from sell-side analysts on Wall Street.

Petroleo Brasileiro SA Petrobras

The first company to consider is Petroleo Brasileiro SA Petrobras (NYSE:PBR). Shares of the Brazilian petroleum corporation closed at $15.94 on Tuesday for a market capitalization of $103.96 billion.

The price-book ratio of 1.38 is above the industry median of 0.96, ranking higher than 400 out of a total of 1,155 competitors that operate in the oil and gas sector.

The share price rose 162.6% in the past five years through Dec. 31 to a level that is not cheap, according to the Peter Lynch chart.

The stock has a GuruFocus financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.

On Feb. 18, 2020, the company will pay a quarterly cash dividend of 9.9 cents per common share, generating a 1.75% forward dividend yield as of Tuesday.

With 1.2% of outstanding shares, Capital World Investors is the company's largest institutional holder, followed by Jim Simons with 0.67% and Ken Fisher with 0.6%.

Wall Street recommends buying this stock and has established an average target price of $19.92 per share, reflecting a 25.1% upside from Tuesday’s closing price.

ING Groep N.V.

The second company to consider is ING Groep N.V. (NYSE:ING). Shares of the Dutch bank closed at $12.03 on Tuesday for a market capitalization of $46.95 billion.

The price-book ratio of 0.78 is below the industry median of 1.07 and outperforms 966 out of 1,421 competitors.

The stock is down 2.35% in the past five years through Dec. 31 to levels that the Peter Lynch chart assesses as cheap.

The stock has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 4 out of 10.

As of Dec. 31, the stock offers a forward dividend yield of 6.39%. The bank paid a semi-annual dividend of 49.7 cents per common share on May 9, 2019.

Ken Fisher is the company's largest institutional holder with 1.26% of outstanding shares, followed by WELLINGTON MANAGEMENT GROUP LLP with 0.28% and NWQ Managers with 0.09%.

Wall Street recommends an overweight rating for shares of ING Groep N.V. and has established an average target price of $13.47 per share, which reflects an 11.8% upside from Tuesday’s closing price.

Nokia Corporation

The third company under consideration is Nokia Corporation (NYSE:NOK). Shares of the Finnish  telecommunications equipment, information technology and consumer electronics company closed at $3.71 on Tuesday for a market capitalization of $20.79 billion.

The price-book ratio of 1.29 is below the industry median of 1.67 and outperforms 1,377  out of a total of 2,258 competitors operating in communication equipment.

The stock is down 51.6% in the past five years through Dec. 31. Nokia has a price-sales ratio of 0.79 versus the industry median of 1.11 and a forward price-earnings ratio of 13.25 versus the industry median of 16.04, indicating that Nokia Corporation is less expensive than many of its competitors.

The stock has a GuruFocus rating of 5 out of 10 for both financial strength and profitability.

Nokia Corporation grants a forward dividend yield of 6.04% as of Dec. 31. On Aug. 13, 2019, the company paid a 5.6 cents quarterly cash dividend per common share to its shareholders.

With 0.49% of outstanding shares, Levin Easterly Partners LLC is the company's largest fund holder, followed by MACKENZIE FINANCIAL CORP with 0.48% and FOLKETRYGDFONDET with 0.44%.

Sell-side analysts recommend an overweight rating for shares of Nokia Corporation and have set an average target price of $4.73, reflecting a 30.3% upside.

Disclosure: I have no positions in any securities mentioned.

GuruFocus 15-Year Anniversary Promotion

The holiday season is here, and so is GuruFocus’s 15-year anniversary! In order to celebrate, we are offering an exclusive holiday discount of up to 30% off on our GuruFocus Premium Membership.

Join now to get GuruFocus Premium membership for only $399/Year! In addition, save an extra $100 when you upgrade to our PremiumPlus Membership, and enjoy $100 off the price of each additional region you add to the subscription.

Don’t miss out on this once-in-a-decade deal! You can sign up for the discount price by clicking this link. Happy holidays!

Read more here:

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)