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3 Low Shiller Price-Earnings Ratio Picks

GuruFocus.com
·3 min read

- By Alberto Abaterusso

Screening for securities with a compelling Shiller price-earnings ratio could bring higher chances of discovering value opportunities.

Thus, investors may be interested in the following stocks, as their Shiller price-earnings ratios are trading below the S&P 500 index's historical average of 16.75 as of Oct. 9.

Bank Bradesco SA


The first company that qualifies is Bank Bradesco SA (NYSE:BBD), a Brazilian bank with operations all over the world.

Bank Bradesco SA has a Shiller price-earnings ratio of 10.13, which is the result of a share price of $3.75 as of Oct. 9 and inflation adjusted earnings per share of about 37 cents per year on average over the past 10 years. The industry has a median of 10.84 for the Shiller price-earnings ratio.

The share price has decreased by 50.2% over the past year for a market capitalization of $32.30 billion and a 52-week range of $2.68 to $8.47.

3 Low Shiller Price-Earnings Ratio Picks
3 Low Shiller Price-Earnings Ratio Picks

GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and a rating of 5 out of 10 to its profitability.

The stock has a buy recommendation rating and an average price target of $6.50 per share on Wall Street.

Energy Transfer LP

The second company that meets the criteria is Energy Transfer LP (NYSE:ET), a Dallas-based oil and gas midstream operator.

Energy Transfer LP has a Shiller price-earnings ratio of 8.16, which results from a share price of $5.89 as of Oct. 9 and inflation adjusted earnings per share of approximately 72 cents per year on average over the past 10 years. The industry has a median of 10.01 for the Shiller price-earnings ratio.

The stock price has fallen by nearly 53% over the past year, which determined a market capitalization of $15.88 billion and a 52-week range of $3.75 to $13.86.

3 Low Shiller Price-Earnings Ratio Picks
3 Low Shiller Price-Earnings Ratio Picks

GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and a rating of 6 out of 10 to its profitability.

The stock has an overweight recommendation rating on Wall Street with an average target price of $10.17 per share.

Verizon Communications Inc

The third company that qualifies is Verizon Communications Inc (NYSE:VZ), a New York-based telecommunication services company.

Verizon Communications Inc has a Shiller price-earnings ratio of 16.24, which is the result of a share price of $59.33 as of Oct. 9 and inflation adjusted earnings per share of about $3.65 per year on average over the past 10 years. The industry has a median of 15.97 for the Shiller price-earnings ratio.

The stock price was quite flat over the past year, determining a market capitalization of $245.51 billion and a 52-week range of $48.84 to $62.22.

3 Low Shiller Price-Earnings Ratio Picks
3 Low Shiller Price-Earnings Ratio Picks

GuruFocus gives a rating of 4 out of 10 to the company's financial strength and a rating of 7 out of 10 to its profitability.

The stock has an overweight recommendation rating on Wall Street and an average target price of $61.30 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.