Investors looking for bargain opportunities may be interested in the following three companies, as their stocks have a low price-to-median-ps-value when compared to the average of the S&P 500, which stands at around 1.4 as of the writing of this article.
This valuation approach, which is based on the idea that the stock valuation will revert to its historical (10-Year) average in terms of price-sales ratio, is calculated by dividing the current share price by the trailing twelve months revenue per share times the 10-year median price-sales ratio.
Sell-side analysts on Wall Street are also positive about these stocks, as they have issued optimistic recommendation ratings.
KB Financial Group Inc
The first stock investors may be interested in is KB Financial Group Inc (KB, Financial), a South Korean bank providing various banking and other financial services to individuals and businesses in South Korea and internationally.
KB Financial Group Inc's price-to-median-ps-value is nearly 0.45 as of Oct. 19, which ranks higher than 93.5% of 704 companies operating in the banks industry.
KB Financial Group's revenue per share for the trailing twelve months through the most recent quarter (which ended on June 29) was $56.33. KB Financial Group's 10-Year Median price-sales ratio is nearly 1.4. Thus, the median price-sales value is $78.80.
The stock price traded at $35.12 per share at close on Monday for a market capitalization of $13.68 billion and a 52-week range of $20.93 to $42.90.
Currently, KB Financial Group Inc pays annual dividends to its shareholders with the last payment of $1.785 per common share made on April 15, for a forward dividend yield of 5.08% as of Oct. 19.
GuruFocus assigned a score of 2 out of 10 to the financial strength rating and of 5 out of 10 to the profitability rating of the company.
Wall Street recommends a buy recommendation rating with an average target price of $42.40 per share for the stock.
Elbit Systems Ltd
The second stock investors may want to consider is Elbit Systems Ltd (ESLT, Financial), an Israeli developer and supplier of several systems and products for aerospace and defense worldwide.
Elbit Systems Ltd's price-to-median-ps-value is about 0.91 as of Oct. 19, which ranks higher than 58.1% of 148 companies operating in the aerospace and defense industry.
Elbit Systems Ltd's revenue per share for the trailing twelve months through the most recent quarter (which ended on June 29) was $103.308. Elbit Systems Ltd's 10-year nedian price-sales ratio is nearly 1.26. Thus, its median price-sales value is $130.16.
The stock price was trading at $118.50 per share at close on Monday for a market capitalization of $5.25billion and a 52-week range of $110 to $167.75.
Currently, Elbit Systems Ltd pays quarterly dividends to its shareholders with the last distribution of 44 cents per common share dated Sept. 14, giving a forward dividend yield of 1.49% as of Oct. 19.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
Wall Street recommends a buy recommendation rating with an average target price of $168 per share for the stock.
Schweitzer-Mauduit International Inc
The third stock is Schweitzer-Mauduit International Inc (SWM, Financial), an Alpharetta, Georgia-based manufacturer and supplier of resin-based rolled goods and several paper products to wrap low ignition propensity cigarettes, alkaline battery separators, food products and other goods.
Schweitzer-Mauduit International Inc's price-to-median-ps-value is nearly 0.72 as of Oct. 19, which ranks higher than 73.72% of 156 companies operating in the forest products industry.
Schweitzer-Mauduit International Inc's revenue per share for the trailing twelve months through the most recent quarter (which ended on June 29) was approximately $32.68. Schweitzer-Mauduit International Inc's 10-year median price-sales ratio is about 1.42. Therefore, the median price-sales value stands at $46.43.
The stock price closed at $33.27 per share on Monday for a market capitalization of $1.04 billion and a 52-week range of $20 to $46.65.
Currently, Schweitzer-Mauduit International Inc pays a quarterly cash dividend of 44 cents per common share with the last payment that was issued to the shareholders on Sept. 18, for a forward dividend yield of 5.29% as of Oct. 19.
GuruFocus assigned a score of 5 out of 10 to the financial strength rating and of 9 out of 10 to the profitability rating of the company.
Wall Street recommends a buy recommendation rating with an average target price of $45 per share for the stock.
Disclosure: I have no position in any security mentioned.
Read more here:
- A Trio of Stocks Trading Below the GuruFocus Value Line
- A Trio of Stocks for the Magic Formula Investing Approach
- 3 Stocks Growing Capex Fast
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