If you want to enhance the effectiveness of your search for value opportunities, then you may want to screen the market for stocks whose Graham blended multiplier is below 22.5. Created by Benjamin Graham, the father of value investing, the multiplier is equal to the stock's price-earnings ratio multiplied by its price-book ratio.
Therefore, investors may want to consider the following stocks.
LG Display
The first stock that qualifies is LG Display Co. Ltd. (LPL, Financial), a South Korean manufacturer of consumer electronics that are used in televisions, computers, mobile devices and automotive displays.
The stock has a Graham blended multiplier of 19.83 as the price-earnings ratio is 26.44 and the price-book ratio is 0.75.
LG Display was trading at $10.9 per share on Friday with a market capitalization of $7.79 billion.
The stock has risen 99.72% over the past year for a 52-week range of $4.97 to $12.305.
GuruFocus assigned a rating of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
Currently, the company is not distributing dividends. The last annual dividend of 23.4 cents per common share was paid on April 19, 2018.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $12.80 per share.
Cannae Holdings
The second stock that meets the criteria is Cannae Holdings Inc. (CNNE, Financial), a Las Vegas-based investment firm that focuses on taking both minority and majority interest stakes in several industries, preferring financial services, restaurants and high tech-assisted health care services.
The stock has a Graham blended multiplier of 3 as the price-earnings ratio is 3.29 and the price-book ratio is 0.91.
Cannae Holdings was trading at $35 per share on Friday with a market capitalization of approximately $3.20 billion.
The stock has declined nearly 14% over the past year, determining a 52-week range of $32.88 to $46.57.
GuruFocus assigned a rating of 5 out of 10 to the company's financial strength and 2 out of 10 to its profitability.
Cannae Holdings does not pay dividends.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $53.50 per share.
Invesco Dynamic Credit Opportunities
The third company that makes the cut is Invesco Dynamic Credit Opportunities (VTA, Financial), an Atlanta-based asset management firm.
The stock has a Graham blended multiplier of 20.78 as the price-earnings ratio is 20.99 and the price-book ratio is 0.99.
Invesco Dynamic Credit Opportunities was trading at $12 per share on Friday, determining a market capitalization of $751.35 million.
The stock has climbed approximately 32.8% over the past year for a 52-week range of $8.72 to $11.98.
GuruFocus assigned a rating of 3 out of 10 to the company's financial strength and 2 out of 10 to its profitability.
The company is currently distributing monthly dividends to shareholders, with the last payment of 7.5 cents per common share made on June 30, generating a forward dividend yield of 7.53%.
On Wall Street as of June, the stock has one recommendation rating of strong buy.
