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3 Low Shiller Price-Earnings Ratio Picks

They could represent value opportunities

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Alberto Abaterusso
Sep 04, 2020
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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 (

RYI, Financial), 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.

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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 (

PPC, Financial), 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.

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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 (

SC, Financial), 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.

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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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