3 Stock Picks With a Low Shiller Price-Earnings Ratio

Virtu Financial Inc tops the list

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Alberto Abaterusso
Apr 12, 2021
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Selecting securities with compelling Shiller price-earnings ratios increases the likelihood of identifying value opportunities, in my opinion. Thus, investors may want to consider the following companies, as their Shiller price-earnings ratios are standing below the S&P 500 Index's historical average of 16.81 as of Friday, April 9.

Virtu Financial Inc

The first company to consider is Virtu Financial Inc (

VIRT, Financial), a New York-based financial services company that provides global financial markets with market making and liquidity services thanks to its own multi-asset and currency technology platform.

The company has a Shiller price-earnings ratio of 13.22, which is the result of a share price of $30.94 as of April 9 and 10-year average inflation-adjusted earnings per share of $2.34 as of the December 2020 quarter. The industry has a median of 19.44 for the Shiller price-earnings ratio.

The share price has grown by 27.50% over the past year for a market capitalization of $5.95 billion and a 52-week range of $20.93 to $32.35.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.

On Wall Street, as of April, the stock has a median recommendation rating of overweight with an average target price of $31.27 per share.

PennyMac Financial Services Inc

The second company investors should consider is PennyMac Financial Services Inc (

PFSI, Financial), a Westlake Village, California-based provider of mortgage banking and investment management services.

The company has a Shiller price-earnings ratio of 10.69. The ratio is the result of a share price of $58.68 as of April 9 and 10-year average inflation-adjusted earnings per share of $5.49 as of the December 2020 quarter. The industry has a median of 13.65 for the Shiller price-earnings ratio.

The share price has increased by 120.52% over the past year, determining a market capitalization of $4.06 billion and a 52-week range of $18.22 to $70.99.

GuruFocus has assigned a rating of 2 out of 10 to the company's financial strength and 8 out of 10 to its profitability.

On Wall Street, as of April, the stock has a median recommendation rating of overweight with an average target price of $84.13 per share.

Enova International Inc

The third company under consideration is Enova International Inc (

ENVA, Financial), a Chicago-based provider of various credit services to individuals, businesses and banks in North America, Brazil and Australia.

The company has a Shiller price-earnings ratio of 12.25. The ratio is the result of a share price of $34.42 as of April 9 and 10-year average inflation-adjusted earnings per share of $2.81 as of the December 2020 quarter. The industry has a median of 11.42 for the Shiller price-earnings ratio.

The share price has risen by 138% over the past year, determining a market capitalization of $1.26 billion and a 52-week range of $9.43 to $41.06.

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 April, the stock has a median recommendation rating of buy with an average target price of $40.25 per share.

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