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3 Stock Picks With a Low Shiller Price-Earnings Ratio

SLM Corp tops the list

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Alberto Abaterusso
Mar 15, 2021
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Choosing stocks with compelling Shiller price-earnings ratios increases the likelihood of identifying value opportunities, in my opinion. Thus, investors may want to have a look at the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 Index's historical average of 16.80 as of Friday, March 12.

SLM Corp

The first company under consideration is SLM Corp (

SLM, Financial), a Newark, Delaware-based provider of education loans to support students and their families in financing the cost of education in the U.S.

The company has a Shiller price-earnings ratio of 16.74, which is the result of a share price of $17.07 as of March 12 and 10-year average inflation-adjusted earnings per share of $1.02 as of the December quarter. The industry has a median of 11.78 for the Shiller price-earnings ratio.

The share price has risen by nearly 152% over the past year for a market capitalization of $6.21 billion and a 52-week range of $5.60 to $17.54.

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GuruFocus has assigned a score of 2 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability rating.

On Wall Street, as of March, the stock has a median recommendation rating of overweight with an average target price of $18.40 per share.

Synnex Corp

The second company to be under consideration is Synnex Corp (

SNX, Financial), a Fremont, California-based provider of business process services in the Americas, Europe, Africa, and Asia-Pacific.

The company has a Shiller price-earnings ratio of 15.75. The ratio is the result of a share price of $102.67 as of March 12 and 10-year average inflation-adjusted earnings per share of $6.51 as of the November quarter. The industry has a median of 36.72 for the Shiller price-earnings ratio.

The share price has risen by 162.68% over the past year, determining a market capitalization of $5.30 billion and a 52-week range of $21.21 to $103.58.

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GuruFocus has assigned a rating of 6 out of 10 to the company's financial strength and 8 out of 10 to its profitability.

On Wall Street, as of March, the stock has a median recommendation rating of overweight with an average target price of $101 per share.

Companhia De Saneamento Basico Do Estado De Sao Pa

The third company to be under consideration is Companhia De Saneamento Basico Do Estado De Sao Pa (

SBS, Financial), a Brazilian provider of treated water, sanitation and liquid waste services.

The company has a Shiller price-earnings ratio of 11.33. The ratio is the result of a share price of $7.02 as of March 12 and 10-year average inflation-adjusted earnings per share of $0.63 as of the June 2020 quarter. The industry has a median of 17.23 for the Shiller price-earnings ratio.

The share price has fallen by 16.5% over the past year, determining a market capitalization of $4.84 billion and a 52-week range of $5.54 to $12.32.

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GuruFocus has assigned a rating of 5 out of 10 to the company's financial strength and 8 out of 10 to its profitability.

On Wall Street, as of March, the stock has a median recommendation rating of overweight with an average target price of $11.29 per share.

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

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