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Alberto Abaterusso
Alberto Abaterusso
Articles (2275) 

A Trio of Low Price-Book Stocks

Stock picks for the value investor

August 06, 2020 | About:

Searching for stocks whose market capitalization surpasses $2 billion and whose price-book ratio is less than or equal to 1.5 could give investors a higher chance of uncovering value stocks.

Thus, value investors may want to consider the following stocks, as they meet the above-listed criteria.

Alaska Air Group Inc

The first company that makes the cut is Alaska Air Group Inc (NYSE:ALK), a Seattle, Washington-based passenger and cargo airlines company providing clients with about 1,300 flights per day and serving about 115 destinations across North and Central America.

Shares were trading at a price of $35.76 each at close on Aug. 5 for a market capitalization of $4.42 billion and a price-book ratio of 1.16.

The stock has fallen 43.3% over the past year, determining a 52-week range of $20.02 to $72.22.

GuruFocus assigned a positive rating of 5 out of 10 to the financial strength and a high rating of 8 out of 10 to the profitability of the company.

The stock has an overweight recommendation rating and an average target price of $45.16 per share on Wall Street.

Companhia Brasileira De Distribuicao

The second company that meets the above criteria is Companhia Brasileira De Distribuicao (NYSE:CBD), a Brazilian operator of a chain of department stores, food, clothing, home appliances, electronics and several other products.

Each American Deposit Receipt (ADR) traded at a price of $12.88 at close on Aug. 5 for a market capitalization of $3.45 billion and a price-book ratio of 1.47.

The stock price has decreased by nearly 45% over the past year, determining a 52-week range of $9.39 to $25.34.

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 two buy recommendation ratings and one hold recommendation rating on Wall Street with an average target price of $17.40 per ADR.

Cameco Corp

The third company that qualifies is Cameco Corp (NYSE:CCJ), a Canadian producer and distributor of uranium.

Shares were trading at a price of $10.39 per unit on Aug. 5 for a market capitalization of $4.11 billion and a price-book ratio of 1.12.

The stock has risen by 19.2% over the past year, determining a 52-week range of $5.30 to $12.33.

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

The stock has an overweight recommendation rating and an average target price of $12.33 per share on Wall Street.

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 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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