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 the 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.
Ford Motor Co
The first stock to consider is Ford Motor Co. (F, Financial), a Dearborn, Michigan-based American auto manufacturing giant.
The stock traded around $11.81 per share at close on Tuesday, which was below the Graham Number of $26.27, for a price-to-Graham Number ratio of approximately 0.45.
The stock is down 20.52% year over year for a market cap of $47.47 billion and a 52-week range of $10.90 to $25.87.
GuruFocus has rated the company's financial strength 4 out of 10 and its profitability 7 out of 10.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $17.74 per share.
Intel Corp
The second company investors may want to consider is Intel Corp. (INTC, Financial), a Santa Clara, California-based semiconductor company.
The stock closed around $37.78 per share on Tuesday, which was below the Graham Number of $47.92, for a price-to-Graham Number ratio of 0.79.
The stock has fallen 32.70% over the past year for a market capitalization of $154.48 billion and a 52-week range of $36.60 to $57.83.
GuruFocus has rated the company's financial strength 7 out of 10 and its profitability 9 out of 10.
On Wall Street, the stock has a median recommendation rating of hold with an average price target of $50.92 per share.
Energy Transfer LP
The third company investors may want to consider is Energy Transfer LP (ET, Financial), a Dallas, Texas-based oil and gas midstream operator.
The stock traded around $10.34 per share at close on Tuesday, which was below the Graham Number of $13.58, for a price-to-Graham Number ratio of 0.76.
The stock is down 2.73% year over year for a market cap of $31.90 billion and a 52-week range of $7.96 to $12.48.
GuruFocus has assigned a score of 4 out of 10 for the company's financial strength and 7 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $15.44 per share.
Celestica Inc.
The fourth company investors may want to consider is Celestica Inc. (CLS, Financial), a Toronto, Canada-based provider of hardware platforms and supply chain solutions for several industries in North America and internationally, including aerospace and defense, industrial and energy. The company also serves biotechnology, capital equipment, original equipment manufacturers and cloud-based providers.
The stock traded around $9.99 per share at close on Tuesday, which was below the Graham Number of $11.64, for a price-to-Graham Number ratio of 0.86.
The stock is up by 27.26% year over year for a market capitalization of $1.24 billion and a 52-week range of $7.01 to $13.40.
GuruFocus has assigned a score of 6 out of 10 for the company's financial strength and 7 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of hold with an average price target of $12.94 per share.
