Screening for stocks with a compelling Shiller price-earnings ratio could bring higher chances of unearthing value opportunities.
Thus, investors may be interested in the following securities, as their Shiller price-earnings ratios are trading below the S&P 500 index's historical average of 16.76 as of Nov. 27.
Agricultural Bank of China Ltd
The first company that qualifies is Agricultural Bank of China Ltd (ACGBY, Financial), a Chinese provider of various banking products and services to corporate and retail clients in Mainland China.
Agricultural Bank of China has a Shiller price-earnings ratio of 5.86, which is the result of a share price of $9.58 as of Nov. 27 and inflation adjusted earnings per share of about $1.63 per year on average over the past 10 years. The industry has a median of 12.22 for the Shiller price-earnings ratio.
The share price has decreased by 5.32% over the past year for a market capitalization of $134.11 billion and a 52-week range of $7.57 to $11.21.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and a rating of 4 out of 10 to its profitability.
On Wall Street, the stock has an overweight recommendation rating with an average price target of $3.02.
Total SE
The second company that qualifies is Total SE (TOT, Financial), a French integrated oil and gas operator.
Total has a Shiller price-earnings ratio of 12.86, which results from a share price of $45.14 as of Nov. 27 and inflation adjusted earnings per share of about $3.51 per year on average over the past 10 years. The industry has a median of 11.56 for the Shiller price-earnings ratio.
The stock price has fallen by 13.54% over the past year, which determined a market capitalization of $118.04 billion and a 52-week range of $22.13 to $56.91.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and a rating of 6 out of 10 to its profitability.
On Wall Street, the stock has a buy recommendation rating with an average target price of $47.85.
Citigroup Inc
The third company that makes the cut is Citigroup Inc (C, Financial), an American bank major.
Citigroup has a Shiller price-earnings ratio of 13.97, which is the result of a share price of $56.67 as of Nov. 27 and inflation adjusted earnings per share of about $4.06 per year on average over the past 10 years. The industry has a median of 12.22 for the Shiller price-earnings ratio.
The stock price has declined by nearly 24% over the past year, determining a market capitalization of $117.98 billion and a 52-week range of $32 to $83.11.
GuruFocus gives a rating of 3 out of 10 to the company's financial strength and a rating of 4 out of 10 to its profitability.
On Wall Street, the stock has a buy recommendation rating with an average target price of $63.24.
Disclosure: I have no positions in any securities mentioned in this article.
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