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3 Low Price-Book Stocks for Value Investors to Consider

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 (NYSE:PBR). 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. (NYSE:ING). 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 (NYSE:NOK). 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.

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This article first appeared on GuruFocus.