Investors who are interested in increasing their chances to uncover high-quality companies may find value in screening for stocks whose market capitalization exceeds $10 billion, but that still trade at not more than 1.5 times the book value.
The following stocks have also received positive recommendation ratings on Wall Street.
Globe Life
The first company to consider is Globe Life Inc. (GL, Financial). Shares of the McKinney, Texas-based provider of life and health insurance products closed at $99.23 on Friday for a market capitalization of $10.75 billion.
The price-book ratio of 1.47 is higher than the industry median of 1.14. However, it is ranked higher than a sizeable group of 154 peers out of a total of 459 companies operating in the life insurance industry.
The share price rose 33.14% so far this year, but it is still cheap according to the Peter Lynch chart.
The company has a GuruFocus financial strength rating of 2 out of 10, which is low, but a positive profitability rating of 6 out of 10.
On Nov. 1, the company paid a quarterly dividend of 17.3 cents per common share, generating a 0.7% forward dividend yield as of Friday.
China Unicom (Hong Kong)
The second company to consider is China Unicom (Hong Kong) Limited (CHUFF, Financial). Shares of the Hong Kong-based provider of telecommunication services to clients in the People's Republic of China closed at $1.02 on Friday for a market capitalization of $27.86 billion.
The price-book ratio of 0.62 is below the industry median of 1.92 and outperforms 89.32% of companies that operate in the telecom services industry.
The stock is down 13% so far this year. As a consequence, the share price seems to not be expensive, according to the Peter Lynch chart.
The stock has a GuruFocus financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
Wall Street recommends an overweight rating for shares of China Unicom (Hong Kong) Limited establishing an average target price of approximately $9.75 per unit.
As of Nov. 15, the stock offers a forward dividend yield of 1.95%. China Unicom (Hong Kong) Limited paid a negligible annual dividend of 15.6 cents in Hong Kong dollars (a bit less than 2 cents USD) per common share on June 12.
Concho Resources
The third company is Concho Resources Inc. (CXO, Financial). Shares of the Midland, Texas-based independent oil and natural gas acquirer, developer and explorer of mineral properties closed at $73.16 on Friday for a market capitalization of $14.71 billion.
The price-book ratio of 0.79 is below the industry median of 0.96 and beats 57.68% of competitors in the oil and gas exploration and production industry.
The stock is down nearly 29% so far this year, and the Peter Lynch chart indicates the stock is now affordable.
The stock has a GuruFocus financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
Sell-side analysts recommend an overweight rating for shares of Concho Resources Inc. and have produced an average target price of $100.68.
Concho Resources Inc. grants a forward dividend yield of 0.68% as of Nov. 15. On Dec. 20, the company will pay a 12.5 cents quarterly cash dividend per common share to shareholders of record as of Nov. 8.
Disclosure: I have no positions in any securities mentioned.
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