If you want to have a higher chance to find 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, as they meet the above criteria.
TotalEnergies SE
The first stock that makes the cut is TotalEnergies SE (TTE, Financial), a Paris, France-based integrated oil and gas operator with 15,500 service stations and almost 12,500 million barrels of equivalent oil in combined proved oil and gas reserves.
The stock has a Graham blended multiplier of 22.23 as the price-earnings ratio is 19.50 and the price-book ratio is 1.14.
TotalEnergies SE traded at $46.11 per share at close on Thursday for a market capitalization of $120.82 billion. The stock has risen 26% over the past year for a 52-week range of $28.65 to $50.41.
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 pays quarterly dividends, with the next one, $0.783 per common share, scheduled for Oct. 12. The stock offers a forward dividend yield of 6.8% as of Sept. 16.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $57.64 per share.
Hewlett Packard Enterprise Co
The second stock that matches the criteria is Hewlett Packard Enterprise Co (HPE, Financial), a San Jose, California-based multinational manufacturer and seller of computer hardware and software and provider of IT and consulting services.
The stock has a Graham blended multiplier of 18.63 as the price-earnings ratio is 17.74 and the price-book ratio is 1.05.
Hewlett Packard Enterprise Co traded at $13.66 per share at close on Thursday for a market capitalization of approximately $17.87 billion. The stock has risen by 43.8% over the past year, determining a 52-week range of $8.28 to $16.74.
GuruFocus assigned a rating of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
Currently, the company pays quarterly dividends, with the next one, $0.12 per common share, scheduled for Oct. 6. The stock offers a forward dividend yield of 3.51% as of Sept. 16.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $17.57 per share.
World Fuel Services Corp
The third company that makes the cut is World Fuel Services Corp (INT, Financial), a Miami, Florida-based supplier of fuel and related products and services to the aviation, marine and land transportation industries worldwide.
The stock has a Graham blended multiplier of 19.42 as the price-earnings ratio is 18.15 and the price-book ratio is 1.07.
World Fuel Services Corp traded at $32.85 per share on Thursday, determining a market capitalization of $2.09 billion. The stock has grown 29.3% over the past year for a 52-week range of $18.36 to $37.68.
GuruFocus assigned a rating of 6 out of 10 to both the company's financial strength and its profitability.
Currently, the company pays quarterly dividends, with the next one, $0.12 per common share, scheduled for Oct. 8. The stock offers a forward dividend yield of 1.46% as of Sept. 16.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $37.50 per share.
Disclosure: I have no positions in any securities mentioned.
