Screening for stocks with a compelling Shiller price-earnings ratio increases the likelihood of uncovering value opportunities. Thus, investors may want to consider 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. 23.
Itau Unibanco Holding SA
The first company to consider is Itau Unibanco Holding SA (ITUB, Financial), a Brazilian bank.
Itau Unibanco Holding SA has a Shiller price-earnings ratio of 8.78, which is the result of a share price of $3.99 as of Sept. 23 and inflation adjusted earnings per share of 45.4 cents on average every year over the past 10 years. The industry has a median of 10.44 for the Shiller price-earnings ratio.
The share price has declined by 52% over the past year for a market capitalization of $38.78 billion and a 52-week range of $3.48 to $9.41.
GuruFocus has 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.
The stock has a hold recommendation rating and an average price target of $6.48 per share on Wall Street.
AT&T Inc
The second company under consideration is AT&T Inc (T, Financial), a Dallas-based telecommunication services giant.
AT&T Inc has a Shiller price-earnings ratio of 10.98, which results from a share price of $27.87 as of Sept. 23 and inflation adjusted earnings per share of $2.54 on average every year over the past 10 years. The industry has a median of 16.03 for the Shiller price-earnings ratio.
The stock price has declined by 25.4% over the past year, determining a market capitalization of $198.57 billion and a 52-week range of $26.08 to $39.70.
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 with an average target price of $32.31 per share.
Wells Fargo & Co
The third company under consideration is Wells Fargo & Co (WFC, Financial), a U.S. bank major.
Wells Fargo & Co has a Shiller price-earnings ratio of 5.98, which is the result of a share price of $22.83 as of Sept. 23 and inflation adjusted earnings per share of $3.82 on average every year over the past 10 years.
The stock price has fallen by 53.7% over the past year, which determined a market capitalization of $94.06 billion and a 52-week range of $22 to $54.75.
GuruFocus has assigned a low rating of 4 out of 10 to the company's financial strength but a moderate rating of 4 out of 10 to its profitability.
On Wall Street, the stock's recommendation rating falls between hold and buy, while its average target price is $29.74 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
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- 3 Stocks Growing Their Earnings Very Fast
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