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Alberto Abaterusso
Alberto Abaterusso
Articles (2532) 

A Trio of Stock Picks With a Low Shiller Price-Earnings Ratio

Volkswagen AG tops the list

January 19, 2021 | About:

Choosing stocks with compelling Shiller price-earnings ratios enhances the likelihood of identifying value opportunities, in my opinion. Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 Index's historical average of 16.78 as of Friday, Jan. 15.

Volkswagen AG

The first company under consideration is Volkswagen AG (VWAGY), a German car manufacturer.

The company has a Shiller price-earnings ratio of 7.05, which is the result of a share price of $20.15 as of Jan. 15 and 10-year average inflation-adjusted earnings per share of $2.86 as of the most recent quarter. The industry has a median of 15.43 for the Shiller price-earnings ratio.

The share price has risen by 1.31% over the past year for a market capitalization of $101.01 billion and a 52-week range of $10.60 to $21.50.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability rating.

As of January, the stock has a median recommendation rating of overweight on Wall Street with an average target price of $87.14 per share.

ORIX Corp

The second company under consideration is ORIX Corp (NYSE:IX), a Japanese provider of a broad range of financial services to clients in Japan and internationally.

The company has a Shiller price-earnings ratio of 10.33. The ratio is the result of a share price of $86.46 as of Jan. 15 and 10-year average inflation-adjusted earnings per share of $8.37 as of the most recent quarter. The industry has a median of 10.16 for the Shiller price-earnings ratio.

The share price has risen by 1.53% over the past year, determining a market capitalization of $21.17 billion and a 52-week range of $52.65 to $89.21.

GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

As of January, the stock has a median recommendation rating of overweight with an average target price of $44.54 per share.

Teck Resources Ltd

The third company under consideration is Teck Resources Ltd (NYSE:TECK), a Vancouver, Canada-based global industrial metals and mining company.

The company has a Shiller price-earnings ratio of 15.45. The ratio is the result of a share price of $19.63 as of Jan. 15 and 10-year average inflation-adjusted earnings per share of nearly $1.30 as of the most recent quarter. The industry has a median of 23.09 for the Shiller price-earnings ratio.

The share price has risen by 23.77% over the past year, determining a market capitalization of $10.70 billion and a 52-week range of $5.60 to $20.43.

GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

As of January, the stock has a median recommendation rating of overweight with an average target price of $21.19 per share.

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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