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 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.
Sibanye Stillwater
The first stock to consider is Sibanye Stillwater Ltd. (SBSW, Financial), a South African precious metals producer with mining activities located in North America and South Africa.
The stock traded around $17.62 per share at close on Friday, which was below the Graham Number of $21.81, for a price-to-Graham Number ratio of approximately 0.81.
The stock is down 2.74% year over year with a market cap of $12.37 billion and a 52-week range of $11.15 to $20.68.
GuruFocus has assigned a score of 8 out of 10 for both the company's financial strength and its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $20.89 per share.
Comerica
The second company investors may want to consider is Comerica Inc. (CMA, Financial), a Dallas-based regional bank serving consumers, businesses and high-net-worth individuals.
The stock closed around $94.95 per share on Friday, which was below the Graham Number of $99.13, for a price-to-Graham Number ratio of 0.96.
The stock has risen 39.88% over the past year for a market capitalization of $12.45 billion and a 52-week range of $63.07 to $102.09.
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 $106.02 per share.
PulteGroup
The third company investors may want to consider is PulteGroup Inc. (PHM, Financial), an Atlanta-based residential construction company.
The stock traded around $48.43 per share at close on Friday, which was below the Graham Number of $70.31, for a price-to-Graham Number ratio of 0.69.
The stock is down 1.30% year over year for a market capitalization of $12.04 billion and a 52-week range of $43.10 to $63.91.
GuruFocus has assigned a score of 8 out of 10 for the company's financial strength and 9 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $65.50 per share.
Lincoln National
The fourth company investors may want to consider is Lincoln National Corp. (LNC, Financial), a Radnor, Pennsylvania-based life insurance company.
The stock traded around $66.05 per share at close on Friday, which was below the Graham Number of $131.65, for a price-to-Graham Number ratio of 0.50.
The stock is up by 5.87% year over year for a market capitalization of $11.39 billion and a 52-week range of $56.41 to $77.57.
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 overweight with an average price target of $77.93 per share.
