Searching for stocks whose market capitalization exceeds $2 billion and whose price-book ratio is 1.5 or less could give investors a higher likelihood of uncovering value stocks.
Thus, value investors may want to consider the following stocks, as they meet the above-listed criteria.
Black Hills
The first company to consider is Black Hills Corp. (BKH, Financial).
Shares of the Rapid City, South Dakota-based electric and natural gas distributor traded at a price of $56.66 each at close on June 30 for a market capitalization of $3.56 billion and a price-book ratio of 1.39.
The stock has declined by 28.5% so far this year, determining a 52-week range of $48.07 to $87.12.
GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength, but a positive rating of 6 out of 10 for its profitability.
The stock has an overweight recommendation rating and an average target price of $71.43 per share on Wall Street.
The company's top fund holder is BlackRock Inc. with 13.35% of shares outstanding, followed by Vanguard Group Inc. with 11.08% and State Street Corp. with 7.80%.
Portland General Electric
The second company to consider is Portland General Electric Co. (POR, Financial).
The Portland, Oregon-based regulated distributor of electricity closed at a price of $41.81 per share on June 30 for a market capitalization of $3.74 billion and a price-book ratio of 1.42.
The stock has fallen by 23.3% over the past year, determining a 52-week range of $37.83 to $63.08.
GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength, but a positive rating of 6 out of 10 for its profitability.
The stock has a hold recommendation rating and an average target price of $47.89 per share on Wall Street.
With 11.37% of shares outstanding, Vanguard is the company's top fund holder, followed by BlackRock with 8.07% and JPMorgan Chase with 4.29%.
Southwest Gas Holdings
The third company to consider is Southwest Gas Holdings Inc. (SWX, Financial).
The Las Vegas-based regulated distributor of natural gas in Nevada, Arizona and California closed trading at $69.05 per share on June 30 for a market capitalization of $3.81 billion and a price-book ratio of 1.5.
The stock has declined 23.6% over the past year for a 52-week range of $45.68 to $92.94.
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 stock has a hold recommendation rating and an average target price of $79.60 per share on Wall Street.
The company's top fund holder is BlackRock with 13.79% of shares outstanding, followed by Vanguard with 10.55% and T Rowe Price Associates with 7.16%.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 High Earnings Return Stocks for Value Investors​
- 3 Stocks With Low Forward Price-Earnings Ratios​
- A Trio of Stocks With Low Price-Sales Ratios
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
