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Alberto Abaterusso
Alberto Abaterusso
Articles (2287) 

3 Graham-Style Stocks for the Value Investor

Their Graham blended multipliers stand below 22.5

June 12, 2020 | About:

Benjamin Graham, the father of value investing and author of "The Intelligent Investor," recommended considering stocks whose "Graham blended multiplier," which is the price-earnings ratio multiplied by the price-book ratio, is less than or equal to 22.5. Such stocks are likely trading at a discount to their intrinsic value.

Thus, investors may want to have a look at the following companies, as their Graham blended multipliers stand below 22.5.

Weis Markets Inc

The first stock to have a look at is Weis Markets Inc (NYSE:WMK), a Sunbury, Pennsylvania-based grocery store chain company.

Shares of Weis Markets were trading at a price of $47.88 each at close on June 11 for a market capitalization of $1.29 billion.

The stock has a Graham blended multiplier of 19.28, as the price-earnings ratio is 16.07 (versus the industry median of 20.31) and the price-book ratio is 1.2 (versus the industry median of 1.55).

The share price increased by 27.5% in the past year, determining a 52-week range of $32.44 to $59.39.

The stock grants a dividend yield of around 2.58% as of June 11.

GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and a very good rating of 7 out of 10 for its profitability.

Wall Street sell-side analysts issued a hold recommendation rating for the stock.

Seacoast Banking Corp of Florida

The second stock to have a look at is Seacoast Banking Corp of Florida (NASDAQ:SBCF), a Stuart, Florida-based regional bank.

Shares of Seacoast Banking were trading at $20.50 each at close on June 11 for a market capitalization of $1.08 billion.

The stock has a Graham blended multiplier of 15.07, as the price-earnings ratio is 13.95 (versus the industry median of 9.78) and the price-book ratio is 1.08 (versus the industry median of 0.79).

The share price decreased by 15.5% in the past year, determining a 52-week range of $13.30 to $31.42.

GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength and a moderate rating of 4 out of 10 for its profitability.

As of June, Wall Street sell-side analysts issued one strong buy recommendation rating, three buy recommendation ratings and three hold recommendation ratings for this stock.

Southside Bancshares Inc

The third company to have a look at is Southside Bancshares Inc (NASDAQ:SBSI), a Tyler, Texas-based regional bank.

Shares of Southside Bancshares were trading at $27.25 each at close on June 11 for a market capitalization of $899.57 million.

The stock has a Graham blended multiplier of 17.96, as the price-earnings ratio is 15.48 (versus the industry median of 9.78) and the price-book ratio is 1.16 (versus the industry median of 0.79).

The share price decreased 17.33% in the past year, which has determined a 52-week range of $23.74 to $37.89.

The stock offers a dividend yield of around 4.54% as of June 11.

GuruFocus assigned a low rating of 2 out of 10 for the company’s financial strength and a moderate rating of 4 out of 10 for its profitability.

The stock has a hold recommendation rating on Wall Street.

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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