Screening for securities with a compelling Shiller price-earnings ratio could bring higher chances of discovering value opportunities.
Thus, investors may be interested in the following stocks, as their Shiller price-earnings ratios are trading below the S&P 500 index's historical average of 16.75 as of Oct. 9.
Bank Bradesco SA
The first company that qualifies is Bank Bradesco SA (BBD, Financial), a Brazilian bank with operations all over the world.
Bank Bradesco SA has a Shiller price-earnings ratio of 10.13, which is the result of a share price of $3.75 as of Oct. 9 and inflation adjusted earnings per share of about 37 cents per year on average over the past 10 years. The industry has a median of 10.84 for the Shiller price-earnings ratio.
The share price has decreased by 50.2% over the past year for a market capitalization of $32.30 billion and a 52-week range of $2.68 to $8.47.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and a rating of 5 out of 10 to its profitability.
The stock has a buy recommendation rating and an average price target of $6.50 per share on Wall Street.
Energy Transfer LP
The second company that meets the criteria is Energy Transfer LP (ET, Financial), a Dallas-based oil and gas midstream operator.
Energy Transfer LP has a Shiller price-earnings ratio of 8.16, which results from a share price of $5.89 as of Oct. 9 and inflation adjusted earnings per share of approximately 72 cents per year on average over the past 10 years. The industry has a median of 10.01 for the Shiller price-earnings ratio.
The stock price has fallen by nearly 53% over the past year, which determined a market capitalization of $15.88 billion and a 52-week range of $3.75 to $13.86.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and a rating of 6 out of 10 to its profitability.
The stock has an overweight recommendation rating on Wall Street with an average target price of $10.17 per share.
Verizon Communications Inc
The third company that qualifies is Verizon Communications Inc (VZ, Financial), a New York-based telecommunication services company.
Verizon Communications Inc has a Shiller price-earnings ratio of 16.24, which is the result of a share price of $59.33 as of Oct. 9 and inflation adjusted earnings per share of about $3.65 per year on average over the past 10 years. The industry has a median of 15.97 for the Shiller price-earnings ratio.
The stock price was quite flat over the past year, determining a market capitalization of $245.51 billion and a 52-week range of $48.84 to $62.22.
GuruFocus gives a rating of 4 out of 10 to the company's financial strength and a rating of 7 out of 10 to its profitability.
The stock has an overweight recommendation rating on Wall Street and an average target price of $61.30 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Reasonably Priced Stocks With Regular Sales and Earnings History
- 3 Stock Picks for the Value Investor
- This Trio Is Growing Earnings Fast
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
