Picking 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 16.84 as of the writing of this article.
UBS Group AG
The first company investors may want to consider is UBS Group AG (UBS, Financial), a diversified bank based in Switzerland.
The company has a Shiller price-earnings ratio of 16.78, which is the result of a share price of $16.78 at close on Wednesday and 10-year average inflation-adjusted earnings per share of approximately $1 as of the June 2021 quarter. The industry has a median of 13.55 for the Shiller price-earnings ratio.
The share price has risen by 39.5% over the past year for a market capitalization of $59.03 billion and a 52-week range of $10.39 to $17.20.
GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and 4 out of 10 to its profitability rating.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $19.04 per share.
Honda Motor Co Ltd
The second company investors may want to consider is Honda Motor Co Ltd (HMC, Financial), a Japanese automaker.
The company has a Shiller price-earnings ratio of 10.85, which is the result of a share price of $31.56 at close on Wednesday and 10-year average inflation-adjusted earnings per share of about $2.91 as of the June 2021 quarter. The industry has a median of 17.13 for the Shiller price-earnings ratio.
The share price has risen by 26.14% over the past year for a market capitalization of $54.50 billion and a 52-week range of $23.10 to $33.42.
GuruFocus has assigned a rating of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $38.53 per share.
MetLife Inc
The third company investors may want to consider is MetLife Inc (MET, Financial), a New York-based financial services company focusing on life insurance, employee benefits, various subsidies and asset management businesses worldwide.
The company has a Shiller price-earnings ratio of 12.78. The ratio is the result of a share price of $60.97 at close on Wednesday and 10-year average inflation-adjusted earnings per share of $4.77 as of the June 2021 quarter. The industry has a median of 14.58 for the Shiller price-earnings ratio.
The share price has climbed 62.1% over the past year, determining a market capitalization of $52.25 billion and a 52-week range of $35.19 to $67.68.
GuruFocus has assigned a rating of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $71.27 per share.
Disclosure: I have no positions in any securities mentioned in this article.
