A Trio of Graham-Style Stocks to Consider

These companies could be bargain opportunities

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Apr 26, 2022
Summary
  • Bank Bradesco SA, Energy Transfer LP and Annaly Capital Management Inc. have Graham blended multipliers below 22.5.
  • Wall Street also likes these stocks.
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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.

Bank Bradesco SA

The first stock that meets the criteria is Bank Bradesco SA (

BBD, Financial), a Brazilian provider of bank services to individuals and businesses in Brazil and internationally.

The stock has a Graham blended multiplier of 7.752 as the price-earnings ratio is 7.60 and the price-book ratio is 1.02.

Bank Bradesco SA traded at $3.86 per share at close on Monday for a market capitalization of approximately $45.13 billion. The stock was nearly unchanged year over year, trading in a 52-week range of $2.95 to $5.18.

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GuruFocus assigned a rating of 4 out of 10 to both the company's financial strength and its profitability.

Bank Bradesco pays monthly dividends. The last distribution of 0.4 cents per common share was issued on April 8, determining a trailing 12-month dividend yield of 1.94% as of this writing.

On Wall Street, the stock has a recommendation rating of buy with a target price of $4.55 per share.

Energy Transfer LP

The second company that makes the cut is Energy Transfer LP (

ET, Financial), a Dallas, Texas-based oil and gas midstream operator.

The stock has a Graham blended multiplier of 6.435 as the price-earnings ratio is 5.85 and the price-book ratio is 1.10.

Energy Transfer LP traded at $11.11 per share at close on Monday, determining a market capitalization of $34.25 billion. The stock has risen by 32.10% over the past year for a 52-week range of $7.96 to $12.08.

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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 quarterly dividends. On Feb. 18, the company paid 17.5 cents per common share. The stock offers a trailing 12-month dividend yield of 5.7% as of April 25.

On Wall Street, the stock has a median buy recommendation rating and an average target price of $14.78 per share.

Annaly Capital Management Inc.

The third company that qualifies 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 has a Graham blended multiplier of 3.248 as the price-earnings ratio is 4.06 and the price-book ratio is 0.8.

Annaly Capital Management Inc. traded at $6.53 per share at close on Monday, determining a market capitalization of $9.54 billion. The stock has fallen by 26.71% over the past year for a 52-week range of $6.32 to $9.64.

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GuruFocus assigned a rating of 3 out of 10 to both the company's financial strength and its profitability.

Annaly Capital Management Inc. pays quarterly dividends. The last distribution of 22 cents per common share was issued on Jan. 31, determining a trailing 12-month dividend yield of 13.49% as of this writing.

On Wall Street, the stock has a median hold recommendation rating and an average target price of $7.25 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
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