Are you looking for ways to identify bargains amid U.S. listed equities? Then you may want to screen the market for stocks trading below the Graham Number, as such stocks are likely to be undervalued.
The Graham Number is calculated as the earnings per share times the book value per share times 22.5, then taking the square root of the result.
Super Micro Computer Inc
The first stock that qualifies is Super Micro Computer Inc (SMCI, Financial), a San Jose, California-based manufacturer of high-performance computer server hardware and storage solutions.
The stock was trading at a price of $27.13 per share at close on Monday and has a Graham Number of 27.7.
The share price has risen 45% in the past year, fluctuating in a 52-week range of $15.76 to $33.30. The stock has a market capitalization of $1.41 billion.
GuruFocus has assigned a score of 8 out of 10 for the company's financial strength and a score of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend a buy rating for shares of Super Micro Computer Inc and have established an average target price of $39.
With 9.61% of shares outstanding, DISCIPLINED GROWTH INVESTORS INC /MN is the company's top fund holder, followed by Howard Marks with 6.68% and Empyrean Capital Partners, LP with 6.49%.
DISH Network Corp
The second stock that meets the criteria is DISH Network Corp (DISH, Financial), an Englewood, Colorado-based provider of pay-tv services in the U.S.
The stock was trading at a price of $32.38 per share at close on Monday, which is below the Graham Number of 32.54.
The stock price has fallen 23% in the past year for a market capitalization of $16.9 billion and a 52-week range of $17.09 to $44.48.
GuruFocus has assigned a score of 5 out of 10 for the company's financial strength and a score of 7 out of 10 for its profitability.
Wall Street sell-side analysts issued an overweight recommendation rating for shares of DISH Network Corp and have produced an average target price of $39.84 per unit.
The company's top fund holder is Dodge & Cox with 6% of shares outstanding, followed by VANGUARD GROUP INC with 5.27% and BlackRock Inc. with 3.15%.
JM Smucker Co
The third stock that meets the criteria is JM Smucker Co (SJM, Financial), an Orrville, Ohio-based global branded food and beverage products manufacturer and marketer.
The stock was trading at a price of $104.94 per share at close on Monday, which is below the Graham Number of 105.25.
The stock price has declined 9% over the past year, determining a market capitalization of $11.99 billion and a 52-week range of $91.88 to $128.43.
GuruFocus has assigned a score of 5 out of 10 for the company's financial strength and 8 out of 10 for its profitability.
Wall Street sell-side analysts issued a hold recommendation rating with an average target price of $112.80 for each share of JM Smucker Co.
The company's top fund holder is VANGUARD GROUP INC with 11.49% of shares outstanding, followed by BlackRock Inc. with 8.71% and STATE STREET CORP with 7.29%.
Disclosure: I have no positions in any security mentioned in this article.
Read more here:
- A Trio of Stocks Trading at a Discount
- 3 Low Shiller Price-Earnings Ratio Picks
- A Trio of Stocks Growing Capex Fast
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