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 times 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.
Marathon Oil Corp
The first stock that meets the criteria is Marathon Oil Corp. (MRO, Financial), a Houston, Texas-based oil and gas exploration and production company.
The stock has a Graham blended multiplier of 12.78 as the price-earnings ratio is 8.41 and the price-book ratio is 1.52.
Marathon Oil Corp. was trading at $24.15 per share at Friday's close, giving it a market cap of approximately $17.9 billion. The stock was up 79.69% year over year, trading in a 52-week range of $10.41 to $33.23.
GuruFocus assigned a rating of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
Marathon Oil Corp. pays quarterly dividends. The company paid 8 cents per common share on June 10, 7 cents on March 10, 6 cents on Dec. 10, 2021 and 5 cents on Sept. 10, 2021, resulting in a trailing 12-month dividend yield of 1.08% as of this writing.
On Wall Street, analysts have recommended a median rating of overweight for the stock with an average target price of $35 per share.
Ironwood Pharmaceuticals Inc.
The second company that makes the cut is Ironwood Pharmaceuticals Inc. (IRWD, Financial), a Boston, Massachusetts-based drug manufacturer that develops and commercializes treatments to resolve gastrointestinal problems.
The stock has a Graham blended multiplier of 12.24 as the price-earnings ratio is 3.58 and the price-book ratio is 3.42.
Ironwood Pharmaceuticals Inc. traded at $11.42 per share at close on Friday, determining a market capitalization of $1.76 billion. The stock has fallen by 5.39% over the past year, fluctuating in a 52-week range of $10.13 to $14.27.
GuruFocus assigned a rating of 6 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
Currently, Ironwood Pharmaceuticals Inc. does not pay dividends.
On Wall Street, the stock has a median hold recommendation rating and an average target price of $12.50 per share.
Banco Santander SA
The third company that qualifies is Banco Santander SA (SAN, Financial), a Madrid, Spain-based bank providing various retail and commercial banking products and related services to individuals and businesses globally.
The stock has a Graham blended multiplier of 2.83 as the price-earnings ratio is 5.44 and the price-book ratio is 0.52.
Banco Santander SA traded at $2.82 per share at close on Friday, determining a market capitalization of $48.17 billion. The stock has fallen by 28.79% over the past year, determining a 52-week range of $2.66 to $4.06.
GuruFocus assigned a rating of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
Banco Santander SA pays semi-annual dividends. The company paid 5.4 cents per common share on May 5 and 5.6 cents on Nov. 5, 2021 for a trailing 12-month dividend yield of 3.91% as of this writing.
On Wall Street, analysts have recommended a median rating of overweight with an average target price of $4.42 per share for the stock.
Enel Americas SA
The fourth company that qualifies is Enel Americas SA (ENIA, Financial), a Chilean electric utility company with operating activities in South America.
The stock has a Graham blended multiplier of 11.02 as the price-earnings ratio is 12.97 and the price-book ratio is 0.85.
Enel Americas SA traded at $4.81 per share at close on Friday, determining a market capitalization of $10.92 billion. The stock has fallen by 29.58% over the past year, determining a 52-week range of $4.68 to $7.40.
GuruFocus assigned a rating of 5 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
Enel Americas SA pays semi-annual dividends. The company paid 6.1 cents per common share on June 9 and 4.2 cents on Feb. 11 for a trailing 12-month dividend yield of 2.14% as of this writing.
On Wall Street, analysts have recommended a median rating of overweight with an average target price of $7.95 per share for the stock.
