1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2470) 

3 Graham-Style Stocks for the Value Investor

Their Graham blended multipliers yield less than 22.5

September 20, 2020 | About:

Benjamin Graham, the pioneer of value investing and author of "The Intelligent Investor," recommended stocks whose "Graham blended multiplier" stood below 22.5. The Graham blended multiplier is the price-earnings ratio multiplied by the price-book ratio. Such stocks could be trading at a discount to their intrinsic value, increasing the likelihood of value opportunities.

Thus, value investors may be interested in the following three stocks, as their Graham blended multipliers stand below 22.5.

Acadia Realty Trust

The first stock investors may be interested in is Acadia Realty Trust (NYSE:AKR), a Rye, New York-based equity real estate investment trust company, which follows a long-term, profitable, growth-oriented investment strategy.

The stock has a Graham blended multiplier of 17.2 as the price-earnings ratio is 24.71 (versus the industry median of 17.77) and the price-book ratio is 0.7 (versus the industry median of 0.93).

Acadia Realty Trust's stock was trading at $11.86 per share at close on Sept. 18 for a market capitalization of $1.02 billion.

The share price has declined by 58.4% over the past year, determining a 52-week range of $9.59 to $29.55.

The distribution of a quarterly cash dividend of 24 cents per common share has been temporarily suspended by the board of trustees of the company. The most recent quarterly payment took place on April 15, for a trailing 12-month dividend yield of 7.25% as of Sept. 18.

GuruFocus assigned a low score of 3 out of 10 to the company's financial strength and a very good score of 7 out of 10 to its profitability.

Wall Street sell-side analysts recommend a hold rating and have established an average target price of $13.92 per share.

Capitol Federal Financial

The second stock investors may be interested in is Capitol Federal Financial Inc. (NASDAQ:CFFN), a Topeka, Kansas-based regional bank.

The stock has a Graham blended multiplier of 19.13 as the price-earnings ratio is 18.94 (versus the industry median of 9.7) and the price-book ratio is 1.01 (versus the industry median of 0.74).

Capitol Federal Financial's stock was trading at $9.28 per share at close on Sept. 18, determining a market capitalization of $1.31 billion.

The share price has fallen by nearly 34% over the past year, and the 52-week range is $9.17 to $14.57.

The stock grants trailing 12-month and forward dividend yields of 3.66% as of Sept. 18.

GuruFocus assigned a low rating of 3 out of 10 to the company's financial strength and a moderate rating of 4 out of 10 to its profitability.

Wall Street sell-side analysts recommend an overweight rating and have set an average target price of $12.33 per share.

Arcosa

The third company investors could be interested in is Arcosa Inc. (NYSE:ACA), a Dallas-based provider of infrastructure-related solutions to the North American construction, energy and transportation industries.

The stock has a Graham blended multiplier of 22.23 as the price-earnings ratio is 18.68 (versus the industry median of 13.83) and the price-book ratio is 1.19 (versus the industry median of 1.02).

Arcosa was trading at $45.4 per share at close on Sept. 18 for a market capitalization of $2.19 billion.

The share price has increased by approximately 32% over the past year for a 52-week range of $28.14 to $48.64.

GuruFocus assigned a very good score of 7 out of 10 to the company's financial strength rating and a moderate score of 4 out of 10 to its profitability rating.

Wall Street sell-side analysts recommend a buy rating and have produced an average target price of $51.80 per share.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)