One way to unearth potential value opportunities is to look 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.
ArcelorMittal SA
The first stock investors may want to consider is ArcelorMittal SA (MT, Financial), a Luxembourg-based global steel producing company with operating activities in the Americas, Europe, Africa and Asia.
The stock price traded around $31.10 per share in early trading on Tuesday, which is below the Graham Number of $40.40 as of the March 2021 quarter for a price-to-Graham-Number ratio of approximately 0.77.
The stock has risen by 163% over the past year for a market capitalization of $31.98 billion and a 52-week range of $10.71 to $33.96.
GuruFocus has assigned a score of 5 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 buy with an average price target of $40.27 per share.
Lennar Corp
The second stock investors may want to consider is Lennar Corp (LEN, Financial), a Miami, Florida-based homebuilder.
The stock price was at around $97.50 per share in early trading on Tuesday, which is below the Graham Number of $111.33 as of the March 2021 quarter for a price-to-Graham-Number ratio of approximately 0.88.
The stock has risen by 47.02% over the past year for a market capitalization of $30.13 billion and a 52-week range of $62.24 to $110.61.
GuruFocus has assigned a score of 5 out of 10 for the company's financial strength and 8 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $118.31 per share.
Huntington Bancshares Inc
The third company investors may want to consider is Huntington Bancshares Inc (HBAN, Financial), a Columbus, Ohio-based regional bank providing various financial services through 840 branches, 11 offices and more than 1,300 ATMs across the midwestern region in the United States.
The stock traded around $14.30 per share in early trading on Tuesday, which is below the Graham Number of $14.66 as of the March 2021 quarter for a price-to-Graham-Number ratio of 0.97.
The stock has risen by 65.35% over the past year for a market capitalization of $21.11 billion and a 52-week range of $8.34 to $16.91.
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 $17.13 per share.
Disclosure: I have no positions in any security mentioned in this article.
