When investors select stocks with a market capitalization of more than $2 billion but that are trading at less than 1.5 times the book value, they have a higher chance of unearthing value stocks.
Thus, value investors may be interested in the following securities as they meet the above-listed criteria.
China Eastern Airlines
The first company that meets the above criteria is China Eastern Airlines Corp Ltd (CEA, Financial). Shares of the Shanghai-based international airlines company closed at $23.93 on Feb. 10 for a market capitalization of $7.84 billion.
The price-book ratio of 1.19 is slightly higher than the industry median of 1.12, but it still outperforms a sizeable group of 401 out of 824 companies that operate in the transportation industry.
The share price has grown nearly 2% in the past five years through Feb. 10, and now it is trading above the earnings line, as indicated by the Peter Lynch chart. This suggests that the stock may be trading not at its cheapest.
GuruFocus assigned a rating of 3 out of 10 for the company’s financial strength and 7 out of 10 for its profitability.
Wall Street suggests holding shares of China Eastern Airlines Corp Ltd with a price target of $27.42 per share.
Buenaventura Mining
The second company with the above criteria to consider is Buenaventura Mining Co Inc (BVN, Financial). Shares of the Peruvian international precious metals mining and exploration company closed at $12.50 on Feb. 10 for a market capitalization of $3.17 billion.
The price-book ratio of 1.12 is better than the industry median of 1.5 as it beats 1,166 out of 1,910 metals and mining operators.
The share price has risen 19% in the past five years through Feb. 10 to levels that are not the cheapest based on below Peter Lynch chart.
GuruFocus assigned a rating of 6 out of 10 for the company’s financial strength and 5 out of 10 for its profitability.
Wall Street suggests holding shares of Buenaventura Mining Co Inc, and sell-side analysts have established an average target price of $15.12 per share.
Kewpie
The third company with the above criteria is Kewpie Corp (KWPCY, Financial). Shares of the Tokyo-based manufacturer and retailer of food products in Japan and internationally closed at $44.50 on Feb. 10 for a market capitalization of $3.18 billion.
The price-book ratio of 1.41 is almost in line with the industry median of 1.42 as it outperforms nearly half of 1,565 companies that operate in the consumer-packaged goods industry.
The stock has decreased by almost 4% over the past five years through Feb. 10. Nonetheless, the share price is still trading above the Peter Lynch earnings line, which may indicate that the stock is not at its cheapest.
The stock has a GuruFocus rating of 7 out of 10 for both the company’s financial strength and its profitability.
On Feb. 18, Kewpie Corp will pay a semi-annual cash dividend of 45.5 cents per common share, generating a 1.69% forward dividend yield as of Feb. 10. The company has been paying dividends for about 14 years.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of High Earnings Return Stocks to Consider
- 3 Stocks Growing CapEx Fast
- 3 Fast-Growing Small Caps
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