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Alberto Abaterusso
Alberto Abaterusso
Articles (2323) 

3 Stocks With Low Shiller Price-Earnings Ratios

Itau Unibanco Holding SA tops the list

September 24, 2020 | About:

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 (NYSE:ITUB), 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 (NYSE:T), 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 (NYSE:WFC), 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.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. 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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