3 Low Price-Book Ratio Stock Picks

These companies could be opportunities for value investors

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Picking stocks whose market capitalization exceeds $10 billion and whose price-book ratio is standing below 1.5 could give value investors a higher likelihood to find opportunities amid U.S.-listed equities.

Thus, value investors could be interested in the following stocks, as they match the above-listed criteria and are recommended by Wall Street.

Royal Dutch Shell PLC

The first company that matches the above characteristics is Royal Dutch Shell PLC (RDS.A, Financial) (RDS.B, Financial), a major British-Dutch petrochemical company.

The price of a share of the common stock class A was trading at around $42.06 at close on March 3 for a market cap of $159.19 billion and a price-book ratio of 0.96.

The common stock class A share price has decreased by 3.80% over the past year for a 52-week range of $21.26 to $44.42.

Common stock class A:

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The price of a share of the common stock class B was trading at around $39.86 at close on March 3 for a market cap of $159.19 billion and a price-book ratio of 0.96.

The common stock class B share price has decreased by 9.49% over the past year for a 52-week range of $19.19 to $44.78.

Common stock class B:

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Royal Dutch Shell PLC's book value was $39.85 per share of common stock class A and class B as of the quarter that ended in December 2020.

GuruFocus assigned a score of 4 out of 10 to the financial strength rating and of 5 out of 10 to the profitability of the company.

On Wall Street, the security has an overweight median recommendation rating and an average target price of $47.42 per share of common stock class A and $48.42 per share of common stock class B.

Wells Fargo & Co

The second company that matches the above characteristics is Wells Fargo & Co (WFC, Financial), a San Francisco, California-based American bank major.

The stock price was trading at around $37.69 per share at close on March 3 for a market capitalization of $155.81 billion and a price-book ratio of 0.97. Wells Fargo's book value was approximately $38.86 per share as of the quarter that ended in December 2020.

The stock price has declined by 3.11% over the past year for a 52-week range of $20.76 to $40.01.

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GuruFocus assigned a score of 3 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 median recommendation rating and an average target price of $39.54 per share on Wall Street.

Citigroup Inc

The third company that matches the criteria is Citigroup Inc (C, Financial), a New York-based U.S. bank major.

The stock price was trading at around $70.38 per share on March 3 for a market capitalization of $146.91 billion and a price-book ratio of 0.82. Citigroup Inc's book value was $85.74 per share as of the quarter that ended in December 2020.

The stock price has risen 10.85% over the past year, determining a 52-week range of $32 to $71.49.

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

The stock has an overweight recommendation rating with an average target price of $79.31 per share on Wall Street.

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

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