3 Low Price-Book Ratio Stock Picks

These companies could be value investing opportunities

Summary
  • The Travelers Companies Inc., Teladoc Health Inc and Lufax Holding Ltd have market caps exceeding $10 billion and price-book ratios that are 1.5 or less
  • Wall Street also likes these stocks
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Picking stocks whose market capitalizations surpass $10 billion and whose price-book ratios are not above 1.5 could grant value investors a higher likelihood to unearth opportunities among U.S.-listed equities.

Thus, value investors could be interested in the following stocks, as they meet the above-listed criteria and are recommended by Wall Street.

The Travelers Companies Inc

The first company to consider is The Travelers Companies Inc. (TRV, Financial), a New York-based insurance firm providing individuals, businesses, associations, public and private organizations in the U.S. and internationally with various insurance products and services.

The share price traded around $150.58 at close on Aug. 5 for a market cap of approximately $38 billion and a price-book ratio of 1.32. The Travelers Companies Inc's book value was approximately $116.86 per share as of the quarter that ended in June 2021.

The share price has risen by nearly 30% over the past year for a 52-week range of $105.67 to $162.71.

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GuruFocus assigned a score of 4 out of 10 to the financial strength rating and of 6 out of 10 to the profitability rating of the company.

On Wall Street, as of August, the stock has a median recommendation rating of hold and an average target price of $162.53 per share.

Teladoc Health Inc

The second company to consider is Teladoc Health Inc (TDOC, Financial), a Purchase, New York-based provider of virtual healthcare services to health employers, health plans companies, hospitals, healthcare systems and insurance and financial services companies in the U.S. and internationally.

The stock price traded around $153.03 per share at close on Aug. 5 for a market capitalization of $23.8 billion and a price-book ratio of 1.50. The book value was approximately $100.34 per share as of the quarter that ended in June 2021.

The stock price has fallen by nearly 23% over the past year for a 52-week range of $129.74 to $308.

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GuruFocus assigned a score of 6 out of 10 to the financial strength rating and of 3 out of 10 to the profitability rating of the company.

On Wall Street, as of August, the stock has a median recommendation rating of overweight and an average target price of $199.26 per share.

Lufax Holding Ltd

The third company that meets the above criteria is Lufax Holding Ltd (LU, Financial), a Shanghai, People's Republic of China-based operator of a personal financial services platform in mainland China, where consumers have access to various loan products. The company also offers financial services to investors and owners of small businesses through specifically dedicated platforms.

The stock price traded at around $7.08 per share on Aug. 5 for a market capitalization of around $17.41 billion and a price-book ratio of 1.33. The book value was approximately $5.40 per share as of the quarter that ended in March 2021.

The stock price has decreased by 45% over the past year, determining a 52-week range of $6.95 to $20.17.

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GuruFocus assigned a score of 3 out of 10 to the financial strength rating and of 1 out of 10 to the profitability rating of the company.

On Wall Street, as of August, the stock has a median recommendation rating of overweight and an average target price of $96.60 per share.

Disclosure: I have no positions in any securities mentioned in this article.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure