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3 Graham-Style Stocks for the Value Investor

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·3 min read
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Benjamin Graham, the father of value investing and author of "The Intelligent Investor," recommended considering stocks whose "Graham blended multiplier," which is the price-earnings ratio multiplied by the price-book ratio, is less than or equal to 22.5. Such stocks are likely trading at a discount to their intrinsic value.

Thus, investors may want to have a look at the following companies, as their Graham blended multipliers stand below 22.5.


Weis Markets Inc

The first stock to have a look at is Weis Markets Inc (NYSE:WMK), a Sunbury, Pennsylvania-based grocery store chain company.

Shares of Weis Markets were trading at a price of $47.88 each at close on June 11 for a market capitalization of $1.29 billion.

The stock has a Graham blended multiplier of 19.28, as the price-earnings ratio is 16.07 (versus the industry median of 20.31) and the price-book ratio is 1.2 (versus the industry median of 1.55).

The share price increased by 27.5% in the past year, determining a 52-week range of $32.44 to $59.39.

The stock grants a dividend yield of around 2.58% as of June 11.

GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and a very good rating of 7 out of 10 for its profitability.

Wall Street sell-side analysts issued a hold recommendation rating for the stock.

Seacoast Banking Corp of Florida

The second stock to have a look at is Seacoast Banking Corp of Florida (NASDAQ:SBCF), a Stuart, Florida-based regional bank.

Shares of Seacoast Banking were trading at $20.50 each at close on June 11 for a market capitalization of $1.08 billion.

The stock has a Graham blended multiplier of 15.07, as the price-earnings ratio is 13.95 (versus the industry median of 9.78) and the price-book ratio is 1.08 (versus the industry median of 0.79).

The share price decreased by 15.5% in the past year, determining a 52-week range of $13.30 to $31.42.

GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength and a moderate rating of 4 out of 10 for its profitability.

As of June, Wall Street sell-side analysts issued one strong buy recommendation rating, three buy recommendation ratings and three hold recommendation ratings for this stock.

Southside Bancshares Inc

The third company to have a look at is Southside Bancshares Inc (NASDAQ:SBSI), a Tyler, Texas-based regional bank.

Shares of Southside Bancshares were trading at $27.25 each at close on June 11 for a market capitalization of $899.57 million.

The stock has a Graham blended multiplier of 17.96, as the price-earnings ratio is 15.48 (versus the industry median of 9.78) and the price-book ratio is 1.16 (versus the industry median of 0.79).

The share price decreased 17.33% in the past year, which has determined a 52-week range of $23.74 to $37.89.

The stock offers a dividend yield of around 4.54% as of June 11.

GuruFocus assigned a low rating of 2 out of 10 for the company's financial strength and a moderate rating of 4 out of 10 for its profitability.

The stock has a hold recommendation rating on Wall Street.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.