In order to enhance the likelihood of uncovering value stocks, investors may want to look at those companies with a market capitalization surpassing $2 billion but whose price-book ratio is less than 1.5. The following stocks meet this criteria.
The Mosaic Co
The first company that meets the above-listed criteria is The Mosaic Co (MOS, Financial).
Shares of the Tampa, Florida-based producer and global marketer of concentrated phosphate and potash crop nutrients were trading at $10.83 per unit at close on April 16 for a market capitalization of $4.1 billion.
The price-book ratio of 0.45 is better than the industry median of 1.17.
Over the past year, the share price declined by 60%, determining a 52-week range of $6.50 to $27.36.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a positive rating of 6 out of 10 for its profitability.
Wall Street sell-side analysts suggest an overweight rating for shares of The Mosaic Co and have established an average target price of $18.33 per share.
Apache Corp
The second company that meets the above-listed criteria is Apache Corp (APA, Financial).
Shares of the Houston, Texas-based oil and gas explorer and producer were trading at $7.49 per unit on April 16 for a market capitalization of $2.83 billion.
The price-book ratio of 0.87 is a little bit higher than the industry median of 0.59.
The share price declined by 79% over the past year, determining a 52-week range of $3.80 to $37.40.
GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength but a positive rating of 5 out of 10 for its profitability.
Wall Street recommends holding shares of Apache Corp and has established an average target price of $9.89 per share.
Kirby Corp
The third company that meets the above-listed criteria is Kirby Corp (KEX, Financial).
Shares of the Houston, Texas operator of tank barges in the U.S. were trading at $44.82 per unit at close on April 16 for a market capitalization of $2.69 billion.
The price-book ratio of 0.8 is almost in line with the industry median of 0.87.
The share price has dropped 44% over the past year, determining a 52-week range of $32.76 to $92.30.
GuruFocus assigned a positive 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 suggests an overweight rating for shares of Kirby Corp and has set an average price target of $63.57 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Fast-Growing CapEx Stocks
- 3 Fast-Growing Small Caps
- A Trio of Potential Value Opportunities
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