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Alberto Abaterusso
Alberto Abaterusso
Articles (2472) 

This Trio of Low Price-Book Stocks Is Set to Beat the Market

PetroChina Company Limited tops the list

January 10, 2020 | About:

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.


The first company that meets the above-listed criteria is PetroChina Co. Ltd. (NYSE:PTR). 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 (NYSE:AMH). 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). 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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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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AbuBakarAhmad - 1 year ago    Report SPAM

Thanks for informative article.

PTR on my watchlist.

CNOOC even better, key index (CNOOC vs. PTR)

rev. growth (%) 22.4 / 16.8

net profit grw (%) 200+/ 130.7

current ratio 2.71/ 0.74

RoE (%) 12.62/ 4.33

NpM (%) 23.21/ 2.23

PoR (%) 52.10/ 61.66

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