A Trio of Low Price-Book Ratio Stocks

These companies could be value investing opportunities

Summary
  • Aegon NV, Citigroup Inc and Cigna Corp 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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Selecting stocks with market capitalizations exceeding $10 billion and price-book ratios below 1.5 could help value investors to discover more opportunities among U.S.-listed equities. Thus, value investors may want to consider the following stocks, as they meet the above-listed criteria and are recommended by Wall Street.

Aegon NV

The first company to consider is Aegon NV (AEG, Financial), a Dutch provider of diversified insurance products to clients worldwide.

The stock traded around $5.10 at close on Oct. 13 for a market cap of approximately $10.36 billion and a price-book ratio of approximately 0.36. Aegon NV's book value was approximately $14.20 per share as of the fiscal year that ended in Dec. 2020.

The share price has risen by 85.5% over the past year for a 52-week range of $2.60 to $5.29.

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GuruFocus assigned a score of 4 out of 10 to the financial strength rating and 5 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of hold and an average target price of $4.97 per share.

Citigroup Inc

The second company to consider is Citigroup Inc (C, Financial), a U.S. bank major.

The stock traded around $70.26 per share at close on Oct. 13 for a market capitalization of $142.40 billion and a price-book ratio of 0.77. The book value was approximately $90.87 per share as of the quarter that ended in June.

The stock price has increased by 61.11% over the past year for a 52-week range of $40.49 to $80.29.

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GuruFocus assigned a score of 3 out of 10 to the financial strength rating and 5 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $84.29 per share.

Cigna Corp

The third company to consider is Cigna Corp (CI, Financial), a Bloomfield, Connecticut-based healthcare plans company.

The stock traded at around $199.47 per share on Oct. 13 for a market capitalization of around $67.84 billion and a price-book ratio of 1.40. The book value was approximately $142.51 per share as of the quarter that ended in June.

The stock has risen nearly 13% over the past year, determining a 52-week range of $160.37 to $272.81.

GuruFocus assigned a score of 4 out of 10 to the financial strength rating and 7 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $261 per share.

Disclosures

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