No matter how well an economy may be performing, there are always people who believe a recession – or worse – is just around the proverbial corner. Instability in China and a strong American dollar currently fuel such fears in the U.S. although that kind of anxiety is always bubbling just beneath the surface.
Consequently, Financial Services is an important sector in the U.S. economy, whether people crave the security of available credit or the certainty that their savings will be safe.
I wanted to see which American stocks in the Financial Services sector with 5-star predictability ratings are currently undervalued, so I went to the All-In-One Screener, selected “USA” and then selected “Financial Services” from the list of sectors. I chose not to narrow it down any more than that, but if you are so inclined, you can pick from a list of seven Financial Services groups.
My search yielded a list of five 5-star Financial Services companies that are currently undervalued:
World Acceptance Corp.
World Acceptance Corp. (WRLD, Financial), based in Greenville, S.C., offers loan services in 15 states. Late Monday it sold for $30.71 per share.
World Acceptance has a market cap of $275.61 million and has an enterprise value of $747.35 million. It has a P/E of 2.4, a forward P/E of 3.4, a P/B of 0.8 and a P/S of 0.5. GuruFocus has given World Acceptance a Financial Strength rating of 4/10 and a Profitability and Growth rating of 9/10.
Columbia Wanger (Trades, Portfolio) is World Acceptance’s leading shareholder among the gurus. Other gurus who have shares of World Acceptance in their portfolios are Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Chuck Royce (Trades, Portfolio).
Westwood Holdings Group Inc.
Westwood Holdings Group Inc. (WHG, Financial), a Dallas-based financial planner, sold for $60.62 per share late Monday.
Westwood Holdings has a market cap of $515.95 million and an enterprise value of $446.99 million. It has a P/E of 16.8, a forward P/E of 25.6, a P/B of 4.1 and a P/S of 3.9. GuruFocus has given Westwood Holdings Group a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Chuck Royce (Trades, Portfolio) is Westwood Holdings’ leading shareholder among the gurus. Mario Gabelli (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also have shares of Westwood Holdings in their portfolios.
Credit Acceptance Corp.
Credit Acceptance Corp. (CACC, Financial), a Southfield, Mich.-based auto financing company, sold for $213.1 per share late Monday.
Credit Acceptance Corp. has a market cap of $4.39 billion and an enterprise value of $6.25 billion. It has a P/E of 15.4, a forward P/E of 14.7, a P/B of 5.2 and a P/S of 5.9. GuruFocus has given Credit Acceptance a Financial Strength rating of 6/10 and a Profitability and Growth rating of 9/10.
Jim Simons (Trades, Portfolio) is Credit Acceptance’s leading shareholder among the gurus. Mario Gabelli (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) also have shares of Credit Acceptance in their portfolios.
Grupo Financiero Galicia SA
Grupo Financiero Galicia SA (GGAL, Financial), a Buenos Aires, Argentina-based financial services company, is Argentina’s fifth-largest bank. It sold for $20.82 per share late Monday.
Grupo Financiero Galicia has a market cap of $2.71 billion and an enterprise value of $2.92 billion. It has a P/E of 10.1, a P/B of 3.1 and a P/S of 1.9. GuruFocus has given Grupo Financiero Galicia a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10.
Jim Simons (Trades, Portfolio) and George Soros (Trades, Portfolio) have shares of Grupo Financiero Galicia in their portfolios.
German American Bancorp
German American Bancorp (GABC, Financial) is a Jasper, Ind.-based financial services provider, specializing in banking, insurance and investments for business and retail customers. It sold for $31.04 per share late Monday.
German American Bancorp has a market cap of $412.9 million and an enterprise value of $621.33 million. It has a P/E of 13.8, a forward P/E of 14.2, a P/B of 1.8 and a P/S of 4.1. GuruFocus has given German American Bancorp a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.
Jim Simons (Trades, Portfolio) is the only guru who has shares of German American Bancorp in his portfolio.
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