Searching for stocks with compelling Shiller price-earnings ratios arguably increases the odds of discovering good value opportunities. Thus, investors may want to consider the following stocks, since their Shiller price-earnings ratios are near or below the S&P 500 index's historical average of 16.97 as of the time of writing. The Shiller price-earnings ratio is calculated as the last closing share price divided by the 10-year average inflation-adjusted earnings per share.
Pfizer Inc.
The first company investors might want to consider is Pfizer Inc. (PFE, Financial), a New York-based pharmaceutical giant that offers drugs and vaccines in multiple therapeutic areas, including cardiovascular, infectious and chronic immune and inflammatory diseases.
The stock has a Shiller price-earnings ratio of 16.80, which is the result of a closing share price of $48.90 on Monday and 10-year average inflation-adjusted earnings per share of approximately $2.91 as of the June 2022 quarter. The industry has a median of 24.15 for the Shiller price-earnings ratio.
The share price has risen by 1.07% over the past year for a market capitalization of $274.44 billion and a 52-week range of $40.94 to $61.71.
GuruFocus has assigned a score of 7 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $56.66 per share.
Micron Technology Inc.
The second company investors may want to consider is Micron Technology Inc. (MU, Financial), a Boise, Idaho-based semiconductor manufacturer.
The company has a Shiller price-earnings ratio of 12.62, which is the result of a closing share price of $58.31 on Monday and 10-year average inflation-adjusted earnings per share of about $4.65 as of the most recent fiscal quarter ended May 31, 2022. The industry has a median Shiller price-earnings ratio of 28.92.
The share price has dropped by 18.48% over the past year for a market capitalization of $64.80 billion and a 52-week range of $51.40 to $98.45.
GuruFocus has assigned a score of 8 out of 10 to the company's financial strength and 10 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $75.32 per share.
Medical Properties Trust Inc.
The third company investors may want to consider is Medical Properties Trust Inc. (MPW, Financial), a self-advising real estate investment trust based in Birmingham, Alabama that owns hospitals in nine countries on four continents.
The company has a Shiller price-earnings ratio of 12.65. The ratio is the result of a closing share price of $15.59 on Monday and 10-year average inflation-adjusted earnings per share of $1.23 as of the quarter ended June 30. The industry has a median Shiller price-earnings ratio of 12.68.
The share price has fallen 22.78% over the past year, determining a market capitalization of $9.36 billion and a 52-week range of $14.10 to $24.13.
GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of approximately $19.14 per share.
NortonLifeLock Inc.
The fourth company investors may want to consider is NortonLifeLock Inc. (NLOK, Financial), a Tempe, Arizona-based global provider of cyber safety solutions.
The company has a Shiller price-earnings ratio of 11.33. The ratio is the result of a closing share price of $23.24 on Monday and 10-year average inflation-adjusted earnings per share of $2.07 as of the quarter ended June 30. The industry has a median Shiller price-earnings ratio of 32.08.
The share price has fallen 11.42% over the past year, determining a market capitalization of $13.38 billion and a 52-week range of $21.55 to $30.91.
GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of hold with an average target price of approximately $27.23 per share.
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