3 Low Price-Book Ratio Stocks

These companies could be value opportunities

Summary
  • HSBC Holdings PLC, Annaly Capital Management Inc. and Trip.com Group Ltd. have market caps exceeding $10 billion and price-book ratios of 1.5 or less.
  • Wall Street also likes these stocks.
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Screening for stocks with market caps over $10 billion and price-book ratios under 1.5 could provide a good starting place to value investors as they seek to spot opportunities amid the myriad of U.S.-listed stocks. Thus, value investors may want to consider the following stocks, as they match the criteria above and are recommended by Wall Street.

HSBC Holdings PLC

The first company to consider is HSBC Holdings PLC (HSBC, Financial), a London-based international bank.

The stock traded around $35.45 at close on Jan. 28 for a market cap of approximately $143.40 billion and a price-book ratio of approximately 0.72. HSBC Holdings PLC's book value per share for the quarter that ended in September 2021 was $49.04.

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The share price has risen by 34.79% over the past year for a 52-week range of $24.31 to $36.60.

GuruFocus assigned a score of 3 out of 10 to the financial strength rating and 4 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $39.43 per share.

Annaly Capital Management Inc.

The second company is Annaly Capital Management Inc. (NLY, Financial), a New York-based large mortgage real estate investment trust company focusing on residential and commercial assets.

The stock traded around $7.78 per share at close on Jan. 28 for a market capitalization of $11.28 billion and a price-book ratio of 0.93. Annaly Capital Management Inc.'s book value per share for the quarter that ended in September 2021 was $8.39.

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The stock price has decreased by 6.15% over the past year for a 52-week range of $7.29 to $9.64.

GuruFocus assigned a score of 2 out of 10 to the financial strength rating and 3 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 $8.73 per share.

Trip.com Group Ltd.

The third company to consider is Trip.com Group Ltd. (TCOM, Financial), a Chinese operator of a travel service booking website.

The stock traded at around $25.33 per share on Jan. 28 for a market capitalization of around $16.15 billion and a price-book ratio of 0.95. Trip.com Group Ltd.'s book value per share for the quarter that ended in Sept. 2021 was $26.73.

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The stock has dropped 18.68% over the past year, determining a 52-week range of $21.40 to $45.19.

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 overweight and an average target price of $32.03 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure