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Alberto Abaterusso
Alberto Abaterusso
Articles (2608) 

A Trio of Stocks With Low Price-Book Ratios

They could represent value opportunities

June 19, 2020 | About:

When investors look for stocks whose market capitalization exceeds $2 billion and whose price-book ratio is lower than 1.5, they could have a higher chance of coming across value stocks.

Thus, value investors may be interested in the following securities, as they meet the above-listed criteria.

Johnson Controls International PLC

The first company that meets the above listed criteria is Johnson Controls International PLC (NYSE:JCI).

Shares of the Irish global producer of fire, HVAC and other security equipment for buildings were trading at a price of $34.71 per unit at close on June 18 for a market capitalization of $25.82 billion and a price-book ratio of 1.45.

The share price has increased by 39.3% over the last three months, topping the Dow Jones Industrial Average by about 3%. The stock has a 52-week range of $22.78 to $44.65.

GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and of 6 out of 10 for its profitability.

With 12.15% of shares outstanding, Dodge & Cox is the company's top fund holder, followed by Vanguard Group Inc with 8.89% and BlackRock Inc. with 6.54%.

Primo Water Corp

The second company that meets the above listed criteria is Primo Water Corp (NYSE:PRMW).

Shares of the Tampa, Florida-based provider of bottled water delivery and water filtration services to North American and European households and businesses closed at a price of $13.70 each on June 18 for a market cap of $2.19 billion and a price-book ratio of 1.27.

The share price has risen by nearly 67% over the last three months, beating the Dow Jones Industrial Average by about 61%. The stock has a 52-week range of $6.33 to $16.

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.

The company's top fund holder is Nitorum Capital, L.P. with 6.49% of shares outstanding, followed by Levin Easterly Partners LLC with 6.18% and ALLIANCEBERNSTEIN L.P. with 5.15%.

Gerdau SA

The third company that meets the above listed criteria is Gerdau SA (NYSE:GGB).

Shares of the Brazilian steel company were trading at a price of $2.85 per unit at close on June 18 for a market capitalization of $4.85 billion and a price-book ratio of 0.9.

The share price has risen nearly 55% over the past three months, outperforming the Dow Jones Industrial Average by about 26%. The stock has a 52-week range of $1.65 to $5.34.

GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and of 6 out of 10 for its profitability.

The company's top fund holder is Capital International Investors with 7.23% of shares outstanding, followed by CONTRARIAN CAPITAL MANAGEMENT, L.L.C. with 1.24%.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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