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Alberto Abaterusso
Alberto Abaterusso
Articles (2616) 

3 Low Shiller Price-Earnings Ratio Picks

They could represent value opportunities

September 04, 2020 | About:

Screening for stocks with a compelling Shiller price-earnings ratio could result in higher chances of discovering value opportunities.

Thus, investors may be interested in the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 index's historical average of 16.74 as of Sept. 3.

Ryerson Holding Corp

The first company that qualifies is Ryerson Holding Corp (NYSE:RYI), a Chicago, Illinois-based distributor of industrial metals for construction in North America and China.

Ryerson Holding Corp has a Shiller price-earnings ratio of 6.45, which is the result of a share price of $5.48 as of Sept. 3 and inflation adjusted earnings per share of 85 cents per year on average over the past 10 years. The industry has a median of 18.16 for the Shiller price-earnings ratio.

The share price has declined by 25% over the past year for a market capitalization of $208.50 million and a 52-week range of $3.76 to $12.54.

GuruFocus has assigned a moderate rating of 4 out of 10 to the company's financial strength and a positive rating of 5 out of 10 to its profitability.

The stock has a hold recommendation rating and an average price target of $6.50 per share on Wall Street.

Pilgrims Pride Corp

The second company that makes the cut is Pilgrims Pride Corp (NASDAQ:PPC), a Greeley, Colorado-based distributor of fresh, frozen and processed chicken and pork products in the U.S. and internationally.

Pilgrims Pride Corp has a Shiller price-earnings ratio of 10.84, which results from a share price of $16.26 as of Sept. 3 and inflation adjusted earnings per share of $1.50 per year on average over the past 10 years. The industry has a median of 19.54 for the Shiller price-earnings ratio.

The stock price has fallen 48% over the past year, which determined a market capitalization of $3.89 billion and a 52-week range of $14.87 to $33.67.

GuruFocus has assigned a positive rating of 5 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 with an average target price of $19.17 per share.

Santander Consumer USA Holdings Inc

The third company that qualifies is Santander Consumer USA Holdings Inc (NYSE:SC), a Dallas, Texas-based provider of a broad range of financial products and services in the U.S.

Santander Consumer USA Holdings Inc has a Shiller price-earnings ratio of 7.17, which is the result of a share price of $17.62 as of Sept. 3 and inflation adjusted earnings per share of $2.46 per year on average over the past 10 years.

The stock price has fallen by 32.5% over the past year, determining a market capitalization of $5.51 billion and a 52-week range of $9.74 to $27.21.

GuruFocus has assigned a low rating of 1 out of 10 to the company's financial strength but a moderate rating of 4 out of 10 to its profitability.

The stock has a hold recommendation rating on Wall Street and an average target price of $18.77 per share.

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 how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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