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Alberto Abaterusso
Alberto Abaterusso
Articles (2532) 

A Trio of Low Price-Book Ratio Stock Picks to Consider

These large caps could be solid investments

December 15, 2020 | About:

Picking stocks whose market capitalization surpasses $2 billion and whose price-book ratio is trading below 1.5 could grant investors a higher chance of unearthing value opportunities.

Thus, value investors may be interested in the following stocks, as they meet the above-listed criteria.

Westpac Banking Corp

The first company that meets the criteria is Westpac Banking Corp (NYSE:WBK), an Australian global bank.

The stock price was trading at around $15 per share at close on Dec. 14 for a market capitalization of $54.16 billion and a price-book ratio of 1.10. Westpac's book value was $13.61 per share as of the most recent fiscal year that ended in Sepember.

The stock price has decreased by 10.75% over the past year for a 52-week range of $7.98 to $17.29.

GuruFocus assigned a score of 2 out of 10 to the financial strength rating and of 4 out of 10 to the profitability of the company.

The stock has an overweight recommendation rating and an average target price of $15.21 per share on Wall Street.

Centrais Eletricas Brasileiras SA

The second company that meets the above characteristics is Centrais Eletricas Brasileiras SA (NYSE:EBR), a Brazilian generator and distributor of electricity in Brazil.

The stock price was trading at around $7.46 per share at close on Dec. 14 for a market capitalization of $11.71 billion and a price-book ratio of 0.83. Centrais Eletricas Brasileiras' book value was $8.95 per share as of the most recent quarter.

The stock price has declined by 16.07% over the past year for a 52-week range of $2.96 to $10.10.

GuruFocus assigned a score of 4 out of 10 for both the company's financial strength and its profitability.

The stock has a buy recommendation rating and an average target price of $9.35 per share on Wall Street.

Shinhan Financial Group Co Ltd

The third company that meets the criteria is Shinhan Financial Group Co Ltd (NYSE:SHG), a South Korean bank providing financial services and products in South Korea and internationally.

The stock price was trading at around $30.94 per share on Dec. 14 for a market capitalization of $15.98 billion and a price-book ratio of 0.47. Shinhan's book value was $66.04 per share as of the most recent quarter.

The stock price has declined 19.07% over the past year, determining a 52-week range of $17.09 to $39.74.

GuruFocus assigned a score of 2 out of 10 for the company's financial strength rating and of 5 out of 10 for its profitability rating.

The stock has a buy recommendation rating with an average target price of $36.12 per share on Wall Street.

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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