Selecting stocks with compelling Shiller price-earnings ratios raises 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 16.85 as of the writing of this article.
US Xpress Enterprises Inc
The first company investors may want to consider is U.S. Xpress Enterprises Inc. (USX, Financial), a Chattanooga, Tennessee-based trucking services provider in the U.S. that operates approximately 6,500 tractors and 13,000 trailers.
The company has a Shiller price-earnings ratio of 13.90, which is the result of a share price of $8.62 at close on Wednesday and 10-year average inflation-adjusted earnings per share of approximately $0.62 as of the June 2021 quarter. The industry has a median of 21.25 for the Shiller price-earnings ratio.
The share price has risen by 7% over the past year for a market capitalization of $433.95 million and a 52-week range of $6.18 to $12.33.
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 hold with an average target price of $10.75 per share.
Allison Transmission Holdings Inc
The second company investors may want to consider is Allison Transmission Holdings Inc (ALSN, Financial), an Indianapolis-based designer, manufacturer and seller of fully automatic ad hoc transmissions for medium and heavy tactical U.S. defense vehicles and commercial vehicles worldwide.
The company has a Shiller price-earnings ratio of 12.88, which is the result of a share price of $35.93 at close on Wednesday and 10-year average inflation-adjusted earnings per share of about $2.79 as of the June 2021 quarter. The industry has a median of 17.07 for the Shiller price-earnings ratio.
The share price has risen by 5.7% over the past year for a market capitalization of $3.80 billion and a 52-week range of $32.80 to $46.40.
GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of hold with an average target price of $48.11 per share.
Globe Life Inc
The third company investors may want to consider is Globe Life Inc (GL, Financial), a McKinney, Texas-based provider of life and health insurance products.
The company has a Shiller price-earnings ratio of 13.87. The ratio is the result of a share price of $87.91 at close on Wednesday and 10-year average inflation-adjusted earnings per share of $6.34 as of the June 2021 quarter. The industry has a median of 14.17 for the Shiller price-earnings ratio.
The share price has increased 13% over the past year, determining a market capitalization of $8.94 billion and a 52-week range of $75.39 to $108.22.
GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of hold with an average target price of $108.43 per share.
Disclosure: I have no positions in any securities mentioned in this article.
