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Alberto Abaterusso
Alberto Abaterusso
Articles (2203) 

3 Low Price-Book Stocks

Perspecta Inc tops the list

April 08, 2020 | About:

When investors choose stocks whose market capitalization is more than $2 billion and whose price-book ratio stands below 1.5, they have a higher chance of discovering value stocks.

Thus, value investors may want to have a look at the following securities as they meet the above-listed criteria.

Perspecta

The first company that meets the above-listed criteria is Perspecta Inc (NYSE:PRSP).

Shares of the Chantilly, Virginia-based provider of enterprise information technology services to government customers in the U.S. traded at $18.40 per unit at close on April 7 for a market capitalization of roughly $2.97 billion.

The price-book ratio of 1.36 is lower than the industry median of 2.16.

The share price is down 15.5% over the past year, determining a 52-week range of $14.03 to $29.88.

GuruFocus assigned a low rating of 3 out of 10 for the companys financial strength and a moderate rating of 5 out of 10 for its profitability.

Wall Street suggests holding shares of Perspecta Inc and has established an average target price of $25.90 per share.

Vale SA

The second company that meets the above-listed criteria is Vale SA (NYSE:VALE).

Shares of the Brazilian producer and global seller of iron ore and iron ore pellets to steelmaking companies traded at $8.38 per unit on April 7 for a market capitalization of nearly $43 billion.

The price-book ratio of 1.32 is a little bit higher than the industry median of 1.13.

The share price has dropped 38.2% over the past year and determined a 52-week range of $6.49 to $14.19.

GuruFocus assigned a moderate rating of 5 out of 10 for the companys financial strength and a high rating of 8 out of 10 for its profitability.

Wall Street recommends buying shares of Vale SA and has set an average target price of $12.91 per share.

Corning

The third company that meets the criteria is Corning Inc (NYSE:GLW).

Shares of the Corning, New York-based manufacturer of electronic components for the display technologies, optical communications and life sciences businesses worldwide traded at $19.68 per unit at close on April 7 for a market capitalization of $15 billion.

The price-book ratio of 1.41 is slightly higher than the industry median of 1.23.

The share price has lost 42.6% over the past 52 weeks of trading, determining a 52-week range of $17.44 to $35.34.

GuruFocus assigned a moderate rating of 5 out of 10 for the companys financial strength and a very good rating of 7 out of 10 for its profitability.

Wall Street suggests an overweight rating for shares of Corning Inc and has established an average price target of $26.97 per share.

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 gold, silver and precious metals mining industries. 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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