Donald Yacktman, a well-known value investor and founder of the AMG Yacktman Fund (Trades, Portfolio), takes the "forward rate of return" highly into account when appraising the attractiveness of a stock. He calculates this valuation ratio as "normalized free cash flow yield plus real growth plus inflation."
Value investors could be interested in the following four U.S.-listed equities, as their forward rates of return are more than doubling the return on 20-year high-quality market corporate bonds, which is 3.00% as of the writing of this article.
Lithia Motors Inc
The first stock that could be of interest to investors is Lithia Motors Inc (LAD, Financial), a Medford, Oregon-based operator of new and used vehicles stores and a provider of connected financial and insurance products.
Lithia Motors Inc's forward rate of return is 25.5%, which ranks higher than all the other 890 companies that operate in the vehicles and parts industry.
The share price has increased by 12.58% over the past year to close at $317.67 on Friday for a market cap of $9.67 billion. The 52-week range is $225 to $417.98. Its price-sales ratio is 0.39 and its price-book ratio is 28.18.
Vanguard Group Inc, BlackRock Inc. and David Abrams (Trades, Portfolio) are among the largest fund holders of the company with 9.55%, 9.06% and 7.77% of shares outstanding, respectively.
Tenet Healthcare Corp
The second stock that could appeal to value investors is Tenet Healthcare Corp (THC, Financial), a Dallas, Texas-based operator of medical care facilities in the U.S.
Tenet Healthcare Corp's forward rate of return is 15.67%, which ranks higher than all the other 306 companies that operate in the healthcare providers and services industry.
The share price has climbed 147.46% over the past year to trade at $68.82 at close on Friday for a market cap of $7.37 billion and a 52-week range of $24.06 to $76.155. Its price-earnings ratio is 3.27 and its price-book ratio is 0.32.
BlackRock Inc. is the largest top fund holder of the company with 11.80% of shares outstanding. The asset management firm is followed by Vanguard Group with 10.49% and Larry Robbins (Trades, Portfolio) with 9.94%.
UMB Financial Corp
The third stock that could be of interest to value investors is UMB Financial Corp (UMBF, Financial), the Kansas City, Missouri-based holder of UMB Bank, a regional bank that provides various banking and other financial services to individuals and companies.
UMB Financial Corp's forward rate of return is 16.64%, which ranks higher than all of the 1,227 companies that operate in the banks industry.
The share price has grown 86.5% over the past year to trade at $99.09 at close on Friday for a market cap of $4.79 billion and a 52-week range of $47.85 to $99.98. Its price-sales ratio is 3.75 and its price-book ratio is 1.55.
BlackRock Inc., UMB BANK N A/MO and VANGUARD GROUP INC are the largest amid the top fund holders of the company with 10.63%, 10.18% and 9.41% of shares outstanding, respectively.
Boise Cascade Co
The fourth stock that could be of interest to value investors is Boise Cascade Co (BCC, Financial), a Boise, Idaho-based manufacturer and distributor of wood products and construction materials in North America.
Boise Cascade Co's forward rate of return is 27.74%, which ranks higher than 100% of 234 companies that operate in the forest products industry.
The share price has increased by 31.14% over the past year to trade at $54.91 at close on Friday for a market cap of $2.16 billion and a 52-week range of $36.90 to $78.35. Its price-sales ratio is 0.3 and its price-book ratio is 1.78.
BlackRock Inc. and VANGUARD GROUP INC are the largest amid the top fund holders of the company with 15.93% and 12.68% of shares outstanding, respectively.
Disclosure: I have no positions in any security mentioned.
Become a Premium Member to See This: (Free Trial):
