A Trio of Low Price-Book Ratio Stock Picks

These companies could be value investing opportunities

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Choosing stocks whose market capitalization exceeds $10 billion and whose price-book ratios are below 1.5 could give value investors a higher probability to find opportunities amid U.S.-listed equities.

Thus, value investors may want to consider the following stocks, as they match the above-listed criteria and are recommended by Wall Street.

Honda Motor Co Ltd

The first company that matches the above criteria is Honda Motor Co Ltd (HMC, Financial), a Japanese automaker.

The share price was trading at around $30.07 at close on April 1 for a market cap of $51.92 billion and a price-book ratio of 0.65. Honda Motor's book value was approximately $46.35 per share as of the quarter that ended in December 2020.

The share price has increased by 51.41% over the past year for a 52-week range of $19.75 to $31.92.

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GuruFocus assigned a score of 5 out of 10 to the financial strength rating and of 6 out of 10 to the profitability rating of the company.

On Wall Street, as of March, the stock has a buy median recommendation rating and an average target price of $36.68 per share.

Vodafone Group PLC

The second company that matches the above criteria is Vodafone Group PLC (VOD, Financial), a U.K.-based telecommunication services company with operations in Europe and internationally.

The stock price was trading at around $18.73 per share at close on April 1 for a market capitalization of $52.86 billion and a price-book ratio of 0.80. Vodafone's book value was approximately $23.55 per share as of the full fiscal year that ended in March 2020.

The stock price has increased by 38.33% over the past year for a 52-week range of $13 to $19.45.

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GuruFocus assigned a score of 3 out of 10 to the financial strength rating and of 6 out of 10 to the profitability rating of the company.

On Wall Street, as of March, the stock has a buy median recommendation rating and an average target price of $24.66 per share.

MetLife Inc

The third company that matches the above criteria is MetLife Inc (MET, Financial), a New York-based financial services company focusing on life insurance, employee benefits, various subsidies and asset management businesses worldwide.

The stock price was trading at around $61.6 per share on April 1 for a market capitalization of $54.48 billion and a price-book ratio of 0.74. MetLife's book value was $83.50 per share as of the full fiscal year that ended in December 2020.

The stock price has risen 122.22% over the past year, determining a 52-week range of $26.82 to $62.66.

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

On Wall Street, as of March, the stock has an overweight median recommendation rating and an average target price of $61 per share.

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

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