To increase your chances of discovering value opportunities, you may want to look for stocks whose Graham blended multipliers are 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, value investors could be interested in the following stocks, as they meet the above criteria and are favored by Wall Street analysts.
Synovus Financial
The first stock that meets the criteria is Synovus Financial Corp. (SNV, Financial), a Columbus, Georgia-based regional bank providing various financial products and services.
The stock has a Graham blended multiplier of 15.85 as the price-earnings ratio is 10.29 and the price-book ratio is 1.54.
Synovus Financial traded at $50.43 per share at close on Wednesday for a market capitalization of approximately $7.31 billion. The stock was up 24% over the past year, determining a 52-week range of $38.42 to $53.85.
GuruFocus assigned a rating of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
Synovus Financial pays quarterly dividends. The last distribution of 33 cents per common share was issued on Jan 3.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $58.67 per share.
Companhia Siderurgica Nacional
The second company that makes the cut is Companhia Siderurgica Nacional (SID, Financial), a Brazilian integrated steel producer.
The stock has a Graham blended multiplier of 4.48 as the price-earnings ratio is 2.42 and the price-book ratio is 1.85.
Companhia Siderurgica Nacional traded at $5.06 per share at close on Wednesday, determining a market capitalization of $6.79 billion. The stock has fallen by 11.07% over the past year for a 52-week range of $3.56 to $10.33.
GuruFocus assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
Currently, the company pays semi-annual dividends. On Aug. 17, the company paid 25 cents per share. On June 7, 2022, the company will pay 3.4 cents per share. So the stock offers a trailing dividend and forward dividend yield of 8.04% as of Feb. 2.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $6.35 per share.
Popular
The fourth company that qualifies is Popular Inc. (BPOP, Financial), a Puerto Rican regional bank serving consumers and businesses.
The stock has a Graham blended multiplier of 9.78 as the price-earnings ratio is 7.95 and the price-book ratio is 1.23.
Popular traded at $91.38 per share at close on Wednesday, determining a market capitalization of $7.27 billion. The stock has risen by 46.13% over the past year for a 52-week range of $59.57 to $99.485.
GuruFocus assigned a rating of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
Currently, the company pays quarterly dividends of 45 cents per common share. The most recent payment was made on Jan. 3. The stock offers a trailing dividend yield of 1.93% and a forward dividend yield of 1.98% as of Feb. 2.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $112.08 per share.
