In order to increase the likelihood of discovering value stocks, investors may want to look at the following companies, as they have a market capitalization exceeding $2 billion but a price-book ratio of less than 1.5.
Quanta Services Inc
The first company that meets the above-listed criteria is Quanta Services Inc (PWR, Financial).
Shares of the Houston, Texas-based provider of infrastructure services for electricity, industrial, communications and pipeline industries traded at $32.97 per unit at close on May 11 for a market capitalization of $4.54 billion and a price-book ratio of 1.29.
The share price decreased by 6.3% over the past year for a 52-week range of $23.77 to $44.09.
GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and a higher rating of 8 out of 10 for its profitability.
As of May, Wall Street sell-side analysts recommended six strong buys, eight buys and two holds. The average target price is $46.62 per share.
Parsley Energy Inc
The second company that meets the above-listed criteria is Parsley Energy Inc (PE, Financial).
Shares of the Austin, Texas-based oil and gas explorer and producer traded at $9.24 per unit on May 11 for a market capitalization of $3.84 billion and a price-book ratio of 0.81.
The share price dropped by 54.4% over the past year, which determined a 52-week range of $3.92 to $22.11.
GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength but a very positive rating of 7 out of 10 for its profitability.
As of May, Wall Street sell-side analysts recommended 10 strong buys, 18 buys and 2 hold ratings. The average target price is $12.30 per share.
Norsk Hydro ASA
The third company that meets the above-listed criteria is Norsk Hydro ASA (NHYDY, Financial).
Shares of the Australian international bauxite miner, alumina refinery and aluminum smelter traded at $2.25 per unit at close on May 11 for a market capitalization of $4.63 billion and a price-book ratio of 0.57.
The share price declined by 39.2% in the past year for a 52-week range of $1.89 to $4.65.
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.
As of May, Wall Street sell-side analysts suggest a hold recommendation rating for this stock and have established an average price target of $2.65 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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