When investors screen the market for stocks whose market capitalization is over $2 billion and whose price-book ratio stands lower than 1.5, they could have a higher chance of discovering value stocks.
Thus, value investors may want to have a look at the following stocks, as they meet the above-listed criteria.
Continental Resources Inc
The first company that makes the cut is Continental Resources Inc (CLR, Financial).
Shares of the Oklahoma City, Oklahoma-based crude and natural gas explorer and producer in the U.S. were trading at a price of $17.18 each at close on July 17 for a market capitalization of $6.27 billion and a price-book ratio of 0.98.
The stock has declined by 52.6% over the past year, determining a 52-week range of $6.90 to $52.04.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a good rating of 7 out of 10 for its profitability.
The stock has a hold recommendation rating and an average target price of $16.13 per share on Wall Street.
Pearson PLC
The second company that meets the above criteria is Pearson PLC (PSO, Financial).
Shares of the British provider of educational products and services to several organizations worldwide, including governments and educational institutions, closed at a price of $7.05 per share on July 17 for a market capitalization of $5.30 billion and a price-book ratio of 1.
The stock has declined 36.2% over the past year for a 52-week range of $5.08 to $11.51.
GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and another positive rating of 6 out of 10 for its profitability.
The stock has a hold recommendation rating and an average target price of $6.80 per share on Wall Street.
Avnet Inc
The third company that qualifies is Avnet Inc (AVT, Financial).
Shares of the Phoenix, Arizona-based distributor of electronic components and computers were trading at a price of $25.91 per unit on July 17 for a market capitalization of $2.56 billion and a price-book ratio of 0.7.
The stock has declined 41.2% over the past year, determining a 52-week range of $17.85 to $49.03.
GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and for its profitability.
The stock has a hold recommendation rating and an average target price of $30.63 per share on Wall Street.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- A Trio of High Earnings Yield Stocks for the Value Investor
- A Trio of Low Forward Price-Earnings Ratio Stocks
- 3 Low Price-Sales Ratio Stocks
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