One method to enhance the effectiveness of your search for value opportunities is to screen the market for stocks whose "Graham blended multiplier" is less than 22.5. Created by Benjamin Graham, the pioneer of value investing, the multiplier is equal to the stock's price-earnings ratio multiplied by its price-book ratio.
Therefore, value investors may want to consider the following stocks, since their Graham blended multipliers are currently less than 22.5.
First Bancshares Inc
The first stock investors may want to consider is First Bancshares Inc (FBMS, Financial), a Hattiesburg, Mississippi-based regional bank providing banking services for consumers and businesses.
The stock has a Graham blended multiplier of 17.46, as the price-earnings ratio is 13.75 (versus the industry median of 12.92) and the price-book ratio is 1.27 (versus the industry median of 1).
First Bancshares Inc was trading at $39.12 per share at close on May 4 for a market capitalization of $822.25 million.
The share price has risen by 121.64% over the past year for a 52-week range of $16.05 to $40.37.
Currently, First Bancshares Inc is distributing dividends every three months, with the most recent one, 13 cents per common share, paid on Feb. 25, while the next one, 14 cents per common share, is scheduled for payment on May 25. The stock grants a trailing 12-month dividend yield of 1.16% and a forward dividend yield of 1.43% as of May 4.
GuruFocus assigned a rating of 4 out of 10 to both the company's financial strength and its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $43.25 per share.
Red River Bancshares Inc
The second stock investors may want to consider is Red River Bancshares Inc (RRBI, Financial), an Alexandria, Louisiana-based regional bank providing banking products and services to consumers and businesses in Louisiana.
The stock has a Graham blended multiplier of 20.23, as the price-earnings ratio is 14.35 (versus the industry median of 12.92) and the price-book ratio is 1.41 (versus the industry median of 1).
Red River was trading at $55.31 per share at close on May 4 for a market capitalization of $404.14 million.
The share price has grown 47.5% over the past year, determining a 52-week range of $34.29 to $65.07.
The company is currently paying quarterly dividends to shareholders, with the most recent one, 7 cents per common share, issued on March 25 for a trailing 12-month dividend yield of 0.44%.
GuruFocus assigned a rating of 5 out of 10 to the company's financial strength and of 2 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $64.50 per share.
Salisbury Bancorp Inc
The third company investors may want to consider is Salisbury Bancorp Inc (SAL, Financial), a Lakeville, Connecticut-based provider of retail and commercial banking, as well as consumer financing, trust and wealth advisory services.
The stock has a Graham blended multiplier of 9.13, as the price-earnings ratio is 8.95 (versus the industry median of 12.92) and the price-book ratio is 1.02 (versus the industry median of 1).
Salisbury Bancorp Inc was trading at $47.75 per share at close on May 4 for a market capitalization of $135.86 million.
The share price has climbed 38.81% over the past year for a 52-week range of $30.32 to $52.33.
Currently, Salisbury Bancorp Inc is distributing dividends every quarter, with the most recent one, 29 cents per common share, paid on Feb. 26, while the next one, 30 cents per common share, is scheduled for payment on May 28. The stock grants a trailing 12-month dividend yield of 2.43% and a forward dividend yield of 2.52% as of May 4.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $65 per share.
Disclosure: I have no positions in any securities mentioned.
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