>
  1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2544) 

A Trio of Graham-Style Regional Bank Stocks to Consider

They could be potential bargain opportunities

December 20, 2020 | About:

To enhance the effectiveness of screening for value opportunities, one method is to choose stocks whose "Graham blended multiplier" is less than 22.5. Created by Benjamin Graham, the father of value investing, the multiplier is equal to the stock's price-earnings ratio multiplied by its price-book ratio.

Thus, value investors may want to have a look at the following securities since their Graham blended multipliers are less than 22.5.

Atlantic Union Bankshares

The first stock investors should have a look at is Atlantic Union Bankshares Corp. (NASDAQ:AUB), a Richmond, Virginia-based holder of Atlantic Union Bank, a regional bank that serves consumers and businesses.

The stock has a Graham blended multiplier of 16.4, as the price-earnings ratio is 17 (versus the industry median of 11.6) and the price-book ratio is 0.96 (versus the industry median of 0.9).

Atlantic Union Bankshares Corp's stock traded at $32.54 per share at close on Dec. 18 for a market capitalization of $2.56 billion.

The share price has fallen 15.41% over the past year for a 52-week range of $18.55 to $38.77.

The stock gives trailing 12-month and forward dividend yields of 3.07% as of Dec. 18. The most recent payment, a quarterly cash dividend of 25 cents per common share, was made on Nov. 27.

GuruFocus assigned a score of 3 out of 10 to the company's financial strength and of 4 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $32 per share.

First Interstate BancSystem

The second stock investors should have a look at is First Interstate BancSystem Inc (NASDAQ:FIBK), a Billings, Montana-based holder of First Interstate Bank, a regional bank that provides several banking products and services to consumers and businesses.

The stock has a Graham blended multiplier of 19.94, as the price-earnings ratio is 15.58 (versus the industry median of 11.57) and the price-book ratio is 1.28 (versus the industry median of 0.86).

First Interstate BancSystem's stock traded at $40.19 per share at close on Dec. 18 for a market capitalization of $2.54 billion.

The share price has fallen by 5.41% over the past year, determining a 52-week range of $24.5 to $42.9.

The stock offers a trailing 12-month dividend yield of 3.48% and a forward dividend yield of 3.77% as of Dec. 18. The most recent payment, a quarterly cash dividend of 38 cents per common share, was made on Nov. 16.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $40.67 per share.

United Community Banks

The third company investors should consider is United Community Banks Inc. (NASDAQ:UCBI), a Blairsville, Georgia-based holder of United Community Bank, a regional bank that provides a broad range of banking products and services to consumers and businesses.

The stock has a Graham blended multiplier of 19.7, as the price-earnings ratio is 15.14 (versus the industry median of 11.57) and the price-book ratio is 1.3 (versus the industry median of 0.9).

United Community Banks traded at $28.01 per share at close on Dec. 18 for a market capitalization of $2.43 billion.

The share price has fallen by 8.67% over the past year for a 52-week range of $14.95 to $31.66.

The stock gives trailing 12-month and forward dividend yields of 2.57% as of Dec. 18. The most recent payment, a quarterly cash dividend of 18 cents per common share, was made on Oct. 5. The next distribution is scheduled for payment on Jan. 5, 2021.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $28.69 per share.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
wigbertHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)