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

Allstate Corp tops the list

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Alberto Abaterusso
Feb 14, 2021
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Screening for stocks with compelling Shiller price-earnings ratios increases the likelihood of unearthing value opportunities, in my opinion. Thus, investors may want to consider the three stocks listed below, as their Shiller price-earnings ratios are trading lower than the S&P 500 Index's historical average of 16.78 as of Feb. 12.

Allstate Corp

The first company to consider is Allstate Corp (

ALL, Financial), a Northbrook, Illinois-based provider of insurance products to clients in North America.

The company has a Shiller price-earnings ratio of 15.07, which is the result of a share price of $104.43 as of Feb. 12 and 10-year average inflation-adjusted earnings per share of $6.93 as of the September quarter. The industry has a median of 14.59 for the Shiller price-earnings ratio.

The share price has declined by 15.97% over the past year for a market capitalization of $31.77 billion and a 52-week range of $64.13 to $125.92.

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 February, the stock has a median recommendation rating of overweight with an average target price of $124.93 per share on Wall Street.

Banco Santander (Brasil) SA

The second company investors may want to consider is Banco Santander (Brasil) SA (

BSBR, Financial), a So Paulo, Brazil-based bank that serves individuals and businesses of any size in Brazil and internationally.

The stock has a Shiller price-earnings ratio of 14.82. The ratio is the result of a share price of $7.56 as of Feb. 12 and 10-year average inflation-adjusted earnings per share of $0.51 as of the September quarter. The industry has a median of 13.10 for the Shiller price-earnings ratio.

The share price has fallen by 18.62% over the past year, determining a market capitalization of $56.40 billion and a 52-week range of $3.69 to $9.50.

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 February, the stock has a median recommendation rating of overweight with an average target price of $8.51 per share on Wall Street.

Mitsubishi Corp

The third company to consider is Mitsubishi Corp (

MSBHF, Financial), a Tokyo, Japan-based conglomerate company engaging in several sectors including finance, industrials, energy, chemicals and food and beverages.

The stock has a Shiller price-earnings ratio of 11.65. The ratio is the result of a share price of $27.6 as of Feb. 12 and 10-year average inflation-adjusted earnings per share of $2.37 as of the quarter that ended on March 31, 2020. The industry has a median of 15.02 for the Shiller price-earnings ratio.

The share price has risen by 8.7% over the past year, determining a market capitalization of $40.28 billion and a 52-week range of $18.86 to $27.60.

GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and of 6 out of 10 to its profitability.

As of February, the stock has a median recommendation rating of overweight with an average target price of 2,878.89 Japanese Yen (about $27.43) per share on Wall Street.

Disclosure: I have no positions in any securities mentioned in this article.

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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