One way to discover value opportunities is to screen the market for stocks that are trading below their Graham Number, as such stocks could be trading at a 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 consider the following stocks, as they are trading below their Graham Numbers.
KKR & Co Inc
The first stock investors may want to consider is KKR & Co Inc (KKR, Financial), a New York-based asset management firm focusing on private equity, real estate and several other industries.
The stock was trading at a price of $55.30 per share at close on Tuesday, which is below the Graham Number of $59.65 as of the March 2021 quarter, for a price-to-Graham-Number ratio of approximately 0.93.
The stock has grown by 80.48% over the past year for a market capitalization of $32.17 billion and a 52-week range of $27.95 to $59.15.
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 overweight with an average price target of $65.92 per share.
Banco Bilbao Vizcaya Argentaria SA
The second stock investors may want to consider is Banco Bilbao Vizcaya Argentaria SA (BBVA, Financial), a Bilbao, Spain-based bank focusing on the retail, wholesale and private banking services, as well as asset management services, in Spain and internationally.
The stock was trading at a price of $6.42 per share at close on Tuesday, which is below the Graham Number of $9.62 as of the March 2021 quarter, for a price-to-Graham-Number ratio of approximately 0.67.
The stock has risen by 74.46% over the past year for a market capitalization of $42.76 billion and a 52-week range of $2.49 to $6.47.
GuruFocus has assigned a score of 3 out of 10 for the company's financial strength and 4 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $6.45 per share.
Manulife Financial Corp
The third company investors may want to consider is Manulife Financial Corp (MFC, Financial), a Canadian insurance and asset management firm serving North American as well as international individuals and institutional clients.
The stock was trading at a price of $20.79 per share at close on Tuesday, which is below the Graham Number of $25.61 as of the March 2021 quarter, for a price-to-Graham-Number ratio of 0.81.
The stock has climbed by 41.14% over the past year for a market capitalization of $40.45 billion and a 52-week range of $13.02 to $22.25.
GuruFocus has assigned a score of 4 out of 10 for the company's financial strength and 6 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $24.14 per share.
Disclosure: I have no positions in any security mentioned in this article.
