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Alberto Abaterusso
Alberto Abaterusso
Articles (2532) 

3 Large-Cap Stocks Trading Below the Graham Number

They could be bargain opportunities

January 20, 2021 | About:

One way to unearth value opportunities is to screen the market for stocks that are trading below the Graham Number, as such stocks could be selling at discount to their intrinsic value.

The Graham Number is calculated as the square root of "earnings per share x book value per share x 22.5."

MetLife Inc

The first stock to consider is MetLife Inc (NYSE:MET), a New York-based financial services company focusing on life insurance, employee benefits, various subsidies and asset management businesses worldwide.

The stock traded at a price of $52.12 per share at close on Tuesday, which is below the Graham Number of $98.36, for a price-to-Graham-Number ratio of 0.53.

The stock price has risen over the past year by less than 1% for a market capitalization of $46.91 billion and a 52-week range of $22.85 to $53.28.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $54.17 per share.

The company's top fund holder is BlackRock Inc. with 7.55% of shares outstanding, followed by Dodge & Cox with 7.42% and Vanguard Group Inc with 6.78%.

Barclays PLC

The second stock to consider is Barclays PLC (NYSE:BCS), a London, United Kingdom-based provider of various financial products and services to its clients in the UK and internationally.

The stock traded at a price of $7.98 per share at close on Tuesday, which is below the Graham Number of $15.26, for a price-to-Graham-Number ratio of nearly 0.52.

The stock price has fallen by 11.71% over the past year for a market capitalization of $34.63 billion and a 52-week range of $3.41 to $9.43.

GuruFocus has assigned a score of 3 out of 10 for both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $8.84 per share.

Parametric Portfolio Associates LLC and Northern Trust Corp are amid the company's top fund holders, owning 0.16% and 0.12%, respectively, of shares outstanding.

Credit Suisse Group AG

The third company to consider is Credit Suisse Group AG (NYSE:CS), a Swiss global bank.

The stock was trading at a price of $13.63 per share at close on Tuesday, which is below the Graham Number of $25.80, for a price-to-Graham-Number ratio of 0.53.

The change in the share price was negligable after the past 12 months of trading. Now, the stock has a market capitalization of around $33.01 billion and a 52-week range of $6.47 to $14.17.

GuruFocus has assigned a score of 3 out of 10 for both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $15.37 per share.

Earnest Partners LLC and Allianz Asset Management AG are amid the company's top fund holders, owning 0.22% and 0.14%, respectively, of shares outstanding.

Disclosure: I have no positions in any security 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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