One way to unearth potential value opportunities is to look for stocks that are trading below their Graham Numbers, as such stocks could be trading at a discount to their intrinsic values. The Graham Number is calculated as the square root of earnings per share multiplied by book value per share and by 22.5.
Thus, investors may want to consider the following stocks since they are trading below their Graham Numbers.
Wells Fargo
The first stock to consider is Wells Fargo & Co. (WFC, Financial), a San Francisco-based bank major.
The stock traded around $44.76 per share at close on Thursday, which was below the Graham Number of $59.52, for a price-to-Graham Number ratio of approximately 0.75.
The stock is down 4.53% year over year with a market cap of $168.82 billion and a 52-week range of $41.47 to $60.3.
GuruFocus has rated the company's financial strength 3 out of 10 and its profitability 6 out of 10.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $60.16 per share.
Cleveland-Cliffs
The second company investors may want to consider is Cleveland-Cliffs Inc. (CLF, Financial), a Cleveland-based iron ore miner and flat-rolled steel producer.
The stock closed around $25.03 per share on Thursday, which was below the Graham Number of $38.31, for a price-to-Graham Number ratio of 0.65.
The stock has risen 14.25% over the past year for a market capitalization of $12.69 billion and a 52-week range of $15.81 to $34.04.
GuruFocus has rated the company's financial strength 5 out of 10 and its profitability 8 out of 10.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $34.69 per share.
Petrobras
The third company investors may want to consider is Petroleo Brasileiro SA Petrobras (PBR, Financial), a Brazilian integrated oil and gas operator.
The stock traded around $13.65 per share at close on Thursday, which was below the Graham Number of $26.42, for a price-to-Graham Number ratio of 0.52.
The stock is up 54.24% year over year for a market capitalization of $91.38 billion and a 52-week range of $8.6648 to $16.09.
GuruFocus has assigned a score of 5 out of 10 for the company's financial strength and 8 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $15.84 per share.
Micron Technology
The fourth company investors may want to consider is Micron Technology Inc. (MU, Financial), a Boise, Idaho-based semiconductor manufacturer.
The stock traded around $71.29 per share at close on Thursday, which was below the Graham Number of $85.98, for a price-to-Graham Number ratio of 0.83.
The stock is down by 18.18% year over year for a market capitalization of $79.36 billion and a 52-week range of $65.67 to $98.45.
GuruFocus has assigned a score of 8 out of 10 for the company's financial strength and 10 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $112.97 per share.
