Screening for stocks with a compelling Shiller price-earnings ratio increases the chance of uncovering value opportunities.
Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios standing below the S&P 500 index's historical average of 16.73 (as of Aug. 14).
Adecco Group AG
The first company that makes the cut is Adecco Group AG (AHEXY, Financial), a Swiss global provider of human resource services.
Adecco Group AG has a Shiller price-earnings ratio of 15.06, which results from a share price of $25.91 as of Aug. 14 and inflation adjusted earnings per share of $1.72 per year on average over the past 10 years. The industry has a median of 18.83 for the Shiller price-earnings ratio.
The stock price has fallen slightly over the past year by 1.33%, which determined a market capitalization of $8.4 billion and a 52-week range of $15.60 to $32.25.
GuruFocus has assigned a positive rating of 6 out of 10 to the company's financial strength and a very good rating of 7 out of 10 to its profitability.
The stock has an overweight recommendation rating on Wall Street with an average target price of $27.25 per share.
Cheesecake Factory Inc
The second company that qualifies is Cheesecake Factory Inc (CAKE, Financial), a Calabasas, California-based restaurant chain operator.
Cheesecake Factory Inc has a Shiller price-earnings ratio of 14.7, which is the result of a share price of $27.18 as of Aug. 14 and inflation adjusted earnings per share of $1.85 per year on average over the past 10 years. The industry has a median of 22.02 for the Shiller price-earnings ratio.
The share price has declined by 26.4% over the past year for a market capitalization of $1.24 billion and a 52-week range of $14.52 to $45.24.
GuruFocus has assigned a low rating of 3 out of 10 to the company's financial strength and a very good rating of 7 out of 10 to its profitability.
The stock has a hold recommendation rating and an average price target of $25.17 per share on Wall Street.
National CineMedia Inc
The third company that qualifies is National CineMedia Inc (NCMI, Financial), a Centennial, Colorado-based operator of a digital in-theater network for the sale of advertising to national, regional and local North American businesses.
National CineMedia Inc has a Shiller price-earnings ratio of 7.83, which is the result of a share price of $3.17 as of Aug. 14 and inflation adjusted earnings per share of 40.5 cents per year on average over the past 10 years.
The stock price has fallen by 54.7% over the past year, determining a market capitalization of $252.37 million and a 52-week range of $1.62 to $9.85.
GuruFocus has assigned a low rating of 3 out of 10 to the company's financial strength and a very good rating of 7 out of 10 to its profitability.
The stock has a hold recommendation rating on Wall Street and an average target price of $3.50 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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