Investors who want to increase their chances of finding high-quality companies may unearth value in screening for stocks whose market capitalization exceeds $5 billion, but that still trade at not more than 1.5 times book value.
The following stocks have also received positive recommendation ratings from sell-side analysts on Wall Street.
The first company to consider is Vistra Energy Corp. (NYSE:VST). Shares of the Irving, Texas-based independent producer of power closed at $22.52 on Friday for a market capitalization of $10.98 billion.
The price-book ratio of 1.41 is in line with the industry median, ranking higher than 52.32% of a total of 302 competitors that operate in the utilities--independent power producers.
The share price rose 41% over the past five years through Jan. 31 to a level that is not cheap, according to the Peter Lynch chart.
The stock has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 2 out of 10.
Currently, the company pays a quarterly cash dividend of 12.5 cents per common share, generating a 2.22% forward dividend yield as of Friday.
With 8.53% of outstanding shares, Brookfield Asset Management is the company's largest institutional holder, followed by Vanguard Group with 8.35% and FMR LLC with 8.22%.
Wall Street issued a buy recommendation rating for this stock and set an average target price of $33.20 per share.
The second company under consideration is News Corp. (NASDAQ:NWS). Shares of the New York-based global media and information services company closed at $13.97 on Friday for a market capitalization of $8.08 billion.
The price-book ratio of 0.92 is below the industry median of 1.51 and ranks higher than 70.35% of a total of 905 competitors operating in the broadcasting industry.
The stock has declined 3.52% over the past five years through Jan. 31, but the share price is still not cheap as it trades above the Peter Lynch earnings line.
The stock has a GuruFocus financial strength rating of 6 out of 10 and a profitability rating of 5 out of 10.
Currently, the company pays a semiannual cash dividend of 10 cents per common share, which generates a forward dividend yield of 1.43% as of Jan. 31.
SOF Ltd. is the company's largest institutional holder with 1.67% of outstanding shares, followed by Independent Franchise Partners LLP with 1.62% and Vanguard Group Inc. with 0.77%.
Wall Street recommends holding shares of News Corp. and has established an average target price of $14 per share.
The third company to consider is The Mosaic Co. (MOS). Shares of the Plymouth, Minnesota-based producer and marketer of concentrated phosphate and potash crop nutrients in North America and internationally closed at $19.84 on Friday for a market capitalization of $7.51 billion.
The price-book ratio of 0.75 is lower than the industry median of 1.41 and ranks higher than 75.91% of a total of 220 competitors that operate in the agricultural inputs industry.
The stock has tumbled 59.6% over the past five years through Dec. 31, but its share price is still not cheap according to the Peter Lynch chart.
The stock has a GuruFocus rating of 5 out of 10 for its financial strength and of 7 out of 10 for its profitability.
On March 19, the company will pay a quarterly dividend of 5 cents per share to its shareholders of record as of March 5, which produces a forward dividend yield of 1.01% as of Jan. 31.
With 10.22% of outstanding shares, Vanguard is the company's largest fund holder, followed by Boston Partners with 5.43% and State Street Corp. with 5.31%.
Wall Street recommends an overweight rating for shares of Mosaid, which means that this stock is expected to outperform within a year, and set an average target price of $25.72.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.