One way to discover value opportunities is too look for stocks that are trading below the Graham Number, as such stocks could be standing below their intrinsic value.
The Graham Number is calculated as the square root of "earnings per share x book value per share x 22.5."
Kimball Electronics Inc
The first stock that makes the cut is Kimball Electronics Inc (KE, Financial), a Jasper, Indiana-based provider of electronics and diversified manufacturing services to customers operating in various markets, including automotive, industrial, medical and public safety.
The stock traded at a price of $15.64 per share at close on Friday, which is below the Graham Number of 19.25, for a price-to-Graham-Number ratio of 0.81.
The stock price has fallen nearly 10% over the past year, determining a market capitalization of $393.24 million and a 52-week range of $9.78 to $18.49.
GuruFocus has assigned a score of 7 out of 10 for both the company's financial strength and its profitability.
On Wall Street, the stock has a buy recommendation rating with an average price target of $20.
BlackRock Inc. and VANGUARD GROUP INC are amid the largest top fund holders of the company, owning 7.19% and 5.22% of shares outstanding, respectively.
SuRo Capital Corp
The second stock that makes the cut is SuRo Capital Corp (SSSS, Financial), a Woodside, California-based asset management company focusing on investments in late stage venture-backed private firms.
The stock traded at a price of $12.47 per share at close on Friday, which is below the Graham Number of 12.88, for a price-to-Graham-Number ratio of 0.97.
The stock price has risen 84.74% over the past year for a market capitalization of $248.33 million and a 52-week range of $3.6 to $14.91.
GuruFocus has assigned a score of 4 out of 10 for both the company's financial strength and its profitability.
On Wall Street, the stock has a buy recommendation rating with an average price target of $15.33.
The company's top fund holder is Bulldog Investors, LLC with 2.36% of shares outstanding.
Solar Senior Capital Ltd
The third stock that makes the cut is Solar Senior Capital Ltd (SUNS, Financial), a New York-based asset management company focusing on investments in leveraged, middle-market companies that operate in the United States.
The stock traded at a price of $14.98 per share at close on Friday, which is below the Graham Number of 16.96, for a price-to-Graham-Number ratio of 0.88.
The share price has fallen by 16.76% in the past year, fluctuating in a 52-week range of $6.30 to $18.29. The stock's market capitalization stands at around $240.42 million.
GuruFocus has assigned a score of 3 out of 10 for the company's financial strength and a score of 6 out of 10 for its profitability.
On Wall Street, the stock has a buy recommendation rating with an average price target of $16.
The company's top fund holder is JPMORGAN CHASE & CO with 4.37% of shares outstanding, followed by Wunderlich Securities, Inc. with 1.64% and West Family Investments, Inc. with 1.56%.
Disclosure: I have no positions in any security mentioned in this article.
Read more here:
- 3 Low Shiller Price-Earnings Ratio Picks
- This Trio of Stocks Looks Cheap
- A Trio of Stock Picks for the Value Investor
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
