Donald Yacktman, a well-known value investor and founder of Yacktman Asset Management (Trades, Portfolio), took the forward rate of return into account when he evaluated the attractiveness of a stock. This valuation ratio is calculated as normalized free cash flow yield plus real growth plus inflation.
Value investors could be interested in the following U.S.-listed equities as their forward rates of return more than double the return on 20-year high-quality market corporate bonds, which is 3.36% as of the time of writing.
QCR Holdings
The first stock that could be of interest is QCR Holdings Inc. (QCRH, Financial), a Moline, Illinois-based regional bank serving consumers and companies and providing trust and asset management services.
QCR Holdings' forward rate of return is 22.60%, which ranks higher than 67% of 1,213 companies that operate in the banks industry.
The share price has increased by 38.48% over the past year to close at $57.01 on Thursday for a market cap of $895.28 million. The 52-week range is $40.49 to $62.34. Its price-earnings ratio is 9.24 and its price-book ratio is 1.31.
BlackRock Inc. and Vanguard Group Inc. are among the largest fund holders of the company with 7.76% and 4.87%, of shares outstanding.
Shoe Carnival
The second stock that could appeal to value investors is Shoe Carnival Inc. (SCVL, Financial), an Evansville, Indiana-based footwear retailer.
Shoe Carnival's forward rate of return is 18.23%, which ranks higher than 68% of the 730 companies that operate in the retail cyclical industry.
The share price has risen by 28.15% over the past year to trade at $30.54 at close on Thursday for a market cap of $856.51 million and a 52-week range of $23.47 to $46.21. Its price-earnings ratio is 6.13 and its price-book ratio is 1.99.
BlackRock Inc. and Vanguard Group are among the largest shareholders of the company with 10.34% and 5.08% of shares outstanding.
A-Mark Precious Metals
The third stock that could be of interest is A-Mark Precious Metals Inc. (AMRK, Financial), an El Segundo, California-based global precious metals trading operator.
A-Mark Precious Metals' forward rate of return is 19.64%, which ranks higher than 77% of the 452 companies that operate in the capital markets industry.
The share price was up 142% year over year, trading at $71.27 at Thursday's close, giving it a market cap of $796.51 million and a 52-week range of $26.24 to $80.93. Its price-earnings ratio is 3.98 and its price-book ratio is 2.02.
BlackRock, American Century Companies Inc. and Vanguard Group are among the largest fund holders of the company with 5.51%, 4.36% and 3.79% of shares outstanding.
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