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Alberto Abaterusso
Alberto Abaterusso
Articles (2382) 

3 Low Shiller Price-Earnings Ratio Picks

Their Shiller price-earnings ratios are more appealing than that of the S&P 500

October 12, 2020 | About:

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 (NYSE:BBD), 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 (NYSE:ET), 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 (NYSE:VZ), 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.

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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

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