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3 Benjamin Graham-Style Stocks

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·3 min read
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Benjamin Graham, the father of value investing, suggested to pick those stocks whose "Graham blended multiplier" yields less than the value of 22.5. The Graham blended mulitplier is the price-earnings ratio of the stock multiplied by its price-book ratio.

Thus, the following stocks, which have a Graham blended multiplier of less than 22.5, may provide value opportunities.


Enbridge Inc

The first result of my search is Enbridge Inc (NYSE:ENB).

Shares of the Canadian energy infrastructure company closed at a price of $27.21 per unit on April 1 for a market capitalization of $55.54 billion.

The stock has a Graham blended multiplier of 19.68, as the price-earnings ratio is 14.69 and the price-book ratio is 1.34. The industry has a median of 7 for the price-earnings ratio and a median of 0.55 for the price-book ratio.

According to the Peter Lynch chart, the stock trades at a fair price.

The 52-week range is $22.57 to $43.15. Enbridge Inc offers a dividend yield of 8.3% as of April 1.

Wall Street issued an overweight recommendation rating for this stock with an average target price of $37.82 per share.

B&G Foods Inc

The second stock resulting from my search is B&G Foods Inc (NYSE:BGS).

Shares of the Parsippany, New Jersey-based manufacturer and seller of shelf-stable and frozen foods and household products closed at a price of $17.59 per unit on April 1 for a market capitalization of $1.13 billion.

The stock has a Graham blended multiplier of 20.72, as the price-earnings ratio is 14.91 and the price-book ratio is 1.39. The industry has a median of 16.6 for the price-earnings ratio and of 1.15 for the price-book ratio.

According to the Peter Lynch chart, the stock trades at a fair price.

The 52-week range is $10.39 to $26.13. B&G Foods Inc offers a dividend yield of 10.8% as of April 1.

Wall Street issued a hold recommendation rating for this stock with an average target price of $15.43 per share.

Anika Therapeutics Inc

The third company resulting from my search is Anika Therapeutics Inc (NASDAQ:ANIK).

Shares of the Bedford, Massachusetts-based biotech provider of orthopedic treatments closed at a price of $28.47 per unit on April 1 for a market capitalization of $403.37 million.

The stock has a Graham blended multiplier of 21.72, as the price-earnings ratio is 14.98 and the price-book ratio is 1.45. The industry has a median of 34.08 for the price-earnings ratio and of 3.01 for the price-book ratio.

According to the Peter Lynch chart, the stock trades at a fair price.

The 52-week range is $22.01 to $75.72. Anika Therapeutics Inc doesn't pay dividends.

Wall Street issued a buy recommendation rating for this stock with an average target price of $62 per share.

Disclosure: I have no positions in any securities mentioned.

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