A Trio of Large-Cap Graham Stocks to Consider

They could be bargain opportunities

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Alberto Abaterusso
Apr 13, 2021
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One way to uncover value opportunities is to look for stocks that are trading below their Graham Number, as such stocks could be trading at discount to their intrinsic value. The Graham Number is calculated as the square root of "earnings per share times book value per share times 22.5."

Thus, investors may want to have a look at the following large-cap stocks, as they are trading below their Graham Numbers.

Bank Bradesco SA

The first stock to consider is Bank Bradesco SA (

BBD, Financial), a Brazilian provider of bank services to individuals living and businesses operating in Brazil and internationally.

The stock traded at a price of $4.46 per share at close on Monday, which is below the Graham Number of $4.64 as of the December 2020 quarter, for a price-to-Graham-Number ratio of 0.96.

The share price has grown by 10.12% over the past year for a market capitalization of $39.42 billion and a 52-week range of $2.68 to $5.46.

GuruFocus has assigned a score of 3 out of 10 for the company's financial strength and 5 out of 10 for its profitability.

On Wall Street, the stock has a median recommendation rating of buy with an average price target of $6.12 per share.

Sprucegrove Investment Management Ltd and Standard Life Aberdeen plc are the two largest fund holders of the stock with 1.02% and 0.96%, respectively.

Allstate Corp

The second stock to consider is Allstate Corp (

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

The stock traded at a price of $119.36 per share at close on Monday, which is below the Graham Number of $180.74 as of the December 2020 quarter, for a price-to-Graham-Number ratio of approximately 0.66.

The stock has risen by 16.52% over the past year for a market capitalization of $36.15 billion and a 52-week range of $84.97 to $119.62.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $130 per share.

BlackRock Inc., Vanguard Group Inc and State Street Corp are among the largest fund holders, owning 8.45%, 7.42% and 4.81% of the company's shares outstanding, respectively.

The Hartford Financial Services Group Inc

The third company to have a look at is The Hartford Financial Services Group Inc (

HIG, Financial), a Hartford, Connecticut-based insurer and financial services provider in the U.S. and overseas.

The stock traded at a price of $66.52 per share at close on Monday, which is below the Graham Number of $67.76 as of the December 2020 quarter, for a price-to-Graham-Number ratio of 0.98.

Due to a 61.34% increase in its share price over the past year, the stock has a market capitalization of $23.77 billion and a 52-week range of $30.27 to $69.60.

GuruFocus has assigned a score of 4 out of 10 for the company's financial strength and 5 out of 10 for its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $73.15 per share.

Vanguard Group Inc, BlackRock Inc. and JPMorgan Chase & Co are the first three largest fund holders of the company, owning 10.85%, 6.89% and 5.70% of the shares outstanding, respectively.

Disclosure: I have no positions in any security 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