Choosing stocks with compelling Shiller price-earnings ratios enhances the likelihood of identifying value opportunities, in my opinion. Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 Index's historical average of 16.82 as of Friday, May 7.
Ping An Insurance (Group) Co. of China Ltd
The first company to consider is Ping An Insurance (Group) Co. of China Ltd (PNGAY, Financial), a Shenzhen, China-based provider of various insurance, banking and financial products and services to businesses in the People's Republic of China.
The company has a Shiller price-earnings ratio of 15.40, which is the result of a share price of $21.10 as of May 7 and 10-year average inflation-adjusted earnings per share of $1.37 as of the March 2021 quarter. The industry has a median of 15.46 for the Shiller price-earnings ratio.
The share price has increased by 4.15% over the past year for a market capitalization of $192.86 billion and a 52-week range of $19 to $26.67.
GuruFocus has assigned a score of 3 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 May, the stock has a median recommendation rating of buy with an average target price of $32.31 per share.
International Business Machines Corp
The second company to consider is International Business Machines Corp (IBM, Financial), an Armonk, New York-based technology conglomerate.
The company has a Shiller price-earnings ratio of 11.89. The ratio is the result of a share price of $145.46 as of May 7 and 10-year average inflation-adjusted earnings per share of $12.23 as of the March 2021 quarter. The industry has a median of 37.61 for the Shiller price-earnings ratio.
The share price has increased by 18.66% over the past year for a market capitalization of $129.97 billion and a 52-week range of $105.92 to $148.74.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, as of May, the stock has a median recommendation rating of hold with an average target price of $144.10 per share.
GlaxoSmithKline PLC
The third company to consider is GlaxoSmithKline PLC (GSK, Financial), a British pharmaceutical giant.
The company has a Shiller price-earnings ratio of 15.04. The ratio is the result of a share price of $38.35 as of May 7 and 10-year average inflation-adjusted earnings per share of $2.55 as of the March 2021 quarter. The industry has a median of 28.80 for the Shiller price-earnings ratio.
The share price has fallen by 8.84% over the past year, determining a market capitalization of $96.48 billion and a 52-week range of $33.26 to $43.18.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, as of May, the stock has a median recommendation rating of hold with an average target price of $42.67 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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