You don’t hear much about these stocks. They are not on anyone’s “hot ideas” list. Jim Cramer mentions other names on CNBC. You won’t find these in Cathie Woods Innovation Funds. Elon Musk is highly unlikely to tweet about them any time soon.
These are unfavorable value stocks identifiable by 2 basic metrics: the price is below the book value and the price / earnings ratio is well below that of the market as a whole. Viewed another way, some of these may be candidates for purchase due to their relative cheapness and other factors.
One of the oldest and largest banks based in New York City, it is also one of the cheapest of the big stocks. With a price / earnings ratio of just 10 and now trading 11% off the reserve, value investors are likely looking at it.
Citigroup has more long-term debt than shareholders’ equity, which is not that unusual for this sector, but it may cause some investors to pause. Earnings are a long way off this year, although analysts expect them to improve next year. Meanwhile, the company pays a 2.61% dividend, better than the 10-year Treasury yield.
The Japan-based automaker is available for purchase right now at just 64% of its book value. With an a / e of 8.88, it falls within the range of stock values, for sure. Net worth is outweighed by long-term debt, but the current ratio is positive.
Profits are good this year and Honda’s 5-year record is good too. The company pays a dividend of 2.51%. Daiwa Securities recently upgraded the stock from “buy” to “outperform.”
This South Korean-based telecommunications services company is listed on the New York Stock Exchange at about half its book value. That and a price / earnings ratio of 10.4 suggest investor disinterest.
Earnings have been positive for the past 5 years, but analysts expect a worse year to come. Long-term debt is less than equity. KT pays a dividend with a yield of 4.26%.
The company works with grocery stores in the food distribution industry. Earnings are a long way off this year, but analysts expect a significant improvement in the immediate future. The amount of long-term debt is greater than the equity of the shareholders, but the current ratio of the company is positive.
The p / e is only 9.55 and the shares are traded at a 4% discount to reserve. NASDAQ Average Daily Volume
The telecommunications provider is trading at 60% of its book value. The 13.77 price / earnings ratio is definitely well below the S&P 500 multiple. Earnings have been very good this year, but expectations among analysts point to a less-than-good year ahead.
This is another candidate where long-term debt exceeds shareholders’ equity, but the current ratio is green. The company pays a dividend of 2.74%.
These are not purchase recommendations. You should research any of these further before reaching any conclusions. The only point is that there are stocks of value and we are in a period or cycle where they receive little notification. From a solidly contrary point of view, this is interesting.
Statistics courtesy of FinViz.com.