Investors who are interested in enhancing their possibilities to unearth 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 securities have also received positive recommendation ratings from sell-side analysts on Wall Street.
Petroleo Brasileiro SA Petrobras
The first company to consider is Petroleo Brasileiro SA Petrobras (PBR, Financial). Shares of the Brazilian petroleum corporation closed at $15.94 on Tuesday for a market capitalization of $103.96 billion.
The price-book ratio of 1.38 is above the industry median of 0.96, ranking higher than 400 out of a total of 1,155 competitors that operate in the oil and gas sector.
The share price rose 162.6% in the past five years through Dec. 31 to a level that is not cheap, according to the Peter Lynch chart.
The stock has a GuruFocus financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
On Feb. 18, 2020, the company will pay a quarterly cash dividend of 9.9 cents per common share, generating a 1.75% forward dividend yield as of Tuesday.
With 1.2% of outstanding shares, Capital World Investors is the company's largest institutional holder, followed by Jim Simons with 0.67% and Ken Fisher with 0.6%.
Wall Street recommends buying this stock and has established an average target price of $19.92 per share, reflecting a 25.1% upside from Tuesday’s closing price.
ING Groep N.V.
The second company to consider is ING Groep N.V. (ING, Financial). Shares of the Dutch bank closed at $12.03 on Tuesday for a market capitalization of $46.95 billion.
The price-book ratio of 0.78 is below the industry median of 1.07 and outperforms 966 out of 1,421 competitors.
The stock is down 2.35% in the past five years through Dec. 31 to levels that the Peter Lynch chart assesses as cheap.
The stock has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 4 out of 10.
As of Dec. 31, the stock offers a forward dividend yield of 6.39%. The bank paid a semi-annual dividend of 49.7 cents per common share on May 9, 2019.
Ken Fisher is the company's largest institutional holder with 1.26% of outstanding shares, followed by WELLINGTON MANAGEMENT GROUP LLP with 0.28% and NWQ Managers with 0.09%.
Wall Street recommends an overweight rating for shares of ING Groep N.V. and has established an average target price of $13.47 per share, which reflects an 11.8% upside from Tuesday’s closing price.
Nokia Corporation
The third company under consideration is Nokia Corporation (NOK, Financial). Shares of the Finnish telecommunications equipment, information technology and consumer electronics company closed at $3.71 on Tuesday for a market capitalization of $20.79 billion.
The price-book ratio of 1.29 is below the industry median of 1.67 and outperforms 1,377 out of a total of 2,258 competitors operating in communication equipment.
The stock is down 51.6% in the past five years through Dec. 31. Nokia has a price-sales ratio of 0.79 versus the industry median of 1.11 and a forward price-earnings ratio of 13.25 versus the industry median of 16.04, indicating that Nokia Corporation is less expensive than many of its competitors.
The stock has a GuruFocus rating of 5 out of 10 for both financial strength and profitability.
Nokia Corporation grants a forward dividend yield of 6.04% as of Dec. 31. On Aug. 13, 2019, the company paid a 5.6 cents quarterly cash dividend per common share to its shareholders.
With 0.49% of outstanding shares, Levin Easterly Partners LLC is the company's largest fund holder, followed by MACKENZIE FINANCIAL CORP with 0.48% and FOLKETRYGDFONDET with 0.44%.
Sell-side analysts recommend an overweight rating for shares of Nokia Corporation and have set an average target price of $4.73, reflecting a 30.3% upside.
Disclosure: I have no positions in any securities mentioned.
GuruFocus 15-Year Anniversary Promotion
The holiday season is here, and so is GuruFocus’s 15-year anniversary! In order to celebrate, we are offering an exclusive holiday discount of up to 30% off on our GuruFocus Premium Membership.
Join now to get GuruFocus Premium membership for only $399/Year! In addition, save an extra $100 when you upgrade to our PremiumPlus Membership, and enjoy $100 off the price of each additional region you add to the subscription.
Don’t miss out on this once-in-a-decade deal! You can sign up for the discount price by clicking this link. Happy holidays!
Read more here:
