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 (PRSP, Financial).
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 company’s 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 (VALE, Financial).
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 company’s 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 (GLW, Financial).
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 company’s 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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