If investors select stocks that trade at a market capitalization of more than $5 billion but less than 1.5 times book value, they will have a higher chance of coming across value opportunities.
Thus, value investors may be interested in the following stocks, which are also predicted by Wall Street sell-side analysts to outperform the S&P 500.
PetroChina
The first company that meets the above-listed criteria is PetroChina Co. Ltd. (PTR, Financial). Shares of the Chinese oil and gas corporation traded at $52.55 per unit at close on Jan. 9 for a market cap of $96.18 billion.
The stock has a price-book ratio of 0.94, which is below the industry median of 1.02.
The share price fell 17% in the past year through Thursday. The 52-week range is $44.80 to $68.80.
The company has a GuruFocus financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
PetroChina has been paying dividends for two decades. The oil and gas operator paid semi-annual distributions of $1.339 on Aug. 12, 2019 and of 99.1 cents on Nov. 12, and a special dividend of 11 cents on Nov. 12. As a result, the stock grants a forward dividend yield of 4.5% and a trailing 12-month dividend yield of 4.42% based on Thursday’s closing share price.
With 0.06% of outstanding shares, Jim Simons is the company's largest top fundholder, followed by Arrowstreet Capital Limited Partnership with 0.03% and Dimensional Fund Advisors LP with 0.02%.
American Homes 4 Rent
The second company that has the above-listed criteria is American Homes 4 Rent (AMH, Financial). Shares of the Agoura Hills, California-based rental company of single-family homes closed at $25.87 per unit on Thursday for a market capitalization of $7.8 billion.
The stock has a price-book ratio of 1.46, which is a bit higher than the industry median of 1.16.
The share price rose 24% in the past year through Thursday. The 52-week range is $20.36 to $27.14.
The stock has a GuruFocus financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10.
As of Jan. 9, the stock grants a yield of 0.77% for both the forward dividend and the trailing 12-month dividend thanks to the Jan. 7 payment of a quarterly cash dividend of 5 cents per common share.
The Vanguard Group Inc is the company's biggest institutional holder with 12.89% of outstanding shares, followed by Cohen & Steers Inc with 4.33% and Principal Financial Group Inc with 4.14%.
Groupe Bruxelles Lambert
The third company with the above-listed criteria is Groupe Bruxelles Lambert SA (GBLBF, Financial). Shares of the Belgian asset management company were trading at $106.06 at close on Thursday for a market capitalization of $16.52 billion.
The stock has a price-book ratio of 0.83, which is below the industry median of 1.03.
The share price rose 21% in the past year through Thursday. The 52-week range is $87.40 to $106.06.
The stock has a GuruFocus rating of 4 out of 10 for the company’s financial strength and of 6 out of 10 for its profitability.
Groupe Bruxelles Lambert SA has not paid the annual dividend to its shareholders in 2019.
Disclosure: I have no positions in any securities mentioned.
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