Screening for stocks with compelling Shiller price-earnings ratios increases the likelihood of unearthing value opportunities. Thus, investors may want to consider 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 Nov. 3.
Industrial and Commercial Bank of China
The first company under consideration is Industrial and Commercial Bank of China Ltd. IDCBY, a Chinese bank providing various financial products and services to individuals and businesses.
The company has a Shiller price-earnings ratio of 6.12, which is the result of an American depository receipt price of $11.87 as of Nov. 3 and inflation-adjusted earnings per ADR of $1.94 on average every year over the past 10 years. The industry has a median of 11.11 for the Shiller price-earnings ratio.
The ADR price has declined by 19.5% over the past year for a market capitalization of $211.53 billion and a 52-week range of $10.16 to $15.63.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.
As of October, the stock has a median recommendation rating of overweight with an average target price of $5.05.
Toyota Motor
The second company to consider is Toyota Motor Corp. TM.
The Japanese automaker has a Shiller price-earnings ratio of 12.85, which results from an ADR price of $135.87 as of Nov. 3 and inflation-adjusted earnings per ADR of $10.57 on average every year over the past 10 years. The industry has a median of 13.31 for the Shiller price-earnings ratio.
The ADR price has declined by 3.5% over the past year, determining a market capitalization of $189.94 billion and a 52-week range of $108.01 to $145.41.
GuruFocus has assigned a rating of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
As of October, the stock has a median recommendation rating of overweight with an average target price of $147.63.
China Construction Bank
The third company under consideration is China Construction Bank Corp. CICHY, a Chinese bank providing various financial services to individuals and businesses.
China Construction Bank has a Shiller price-earnings ratio of 6.44, which is the result of an ADR price of $14.59 as of Nov. 3 and inflation-adjusted earnings per ADR of $2.27 on average every year over the past 10 years.
The stock has fallen by 11.6% over the past year, which determined a market capitalization of $182.38 billion and a 52-week range of $12.65 to $17.73.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and of 4 out of 10 to its profitability.
As of October, the stock has a median recommendation rating of buy with an average target price of $7.26.
Disclosure: I have no positions in any securities mentioned in this article.
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