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3 Stocks With Low Shiller Price-Earnings Ratios

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·3 min read
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- By Alberto Abaterusso

Screening for stocks with a compelling Shiller price-earnings ratio increases the likelihood of uncovering value opportunities. Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios are standing below the S&P 500 index's historical average of 16.74 as of Sept. 23.

Itau Unibanco Holding SA


The first company to consider is Itau Unibanco Holding SA (NYSE:ITUB), a Brazilian bank.

Itau Unibanco Holding SA has a Shiller price-earnings ratio of 8.78, which is the result of a share price of $3.99 as of Sept. 23 and inflation adjusted earnings per share of 45.4 cents on average every year over the past 10 years. The industry has a median of 10.44 for the Shiller price-earnings ratio.

The share price has declined by 52% over the past year for a market capitalization of $38.78 billion and a 52-week range of $3.48 to $9.41.

3 Stocks With Low Shiller Price-Earnings Ratios
3 Stocks With Low Shiller Price-Earnings Ratios

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

The stock has a hold recommendation rating and an average price target of $6.48 per share on Wall Street.

AT&T Inc

The second company under consideration is AT&T Inc (NYSE:T), a Dallas-based telecommunication services giant.

AT&T Inc has a Shiller price-earnings ratio of 10.98, which results from a share price of $27.87 as of Sept. 23 and inflation adjusted earnings per share of $2.54 on average every year over the past 10 years. The industry has a median of 16.03 for the Shiller price-earnings ratio.

The stock price has declined by 25.4% over the past year, determining a market capitalization of $198.57 billion and a 52-week range of $26.08 to $39.70.

3 Stocks With Low Shiller Price-Earnings Ratios
3 Stocks With Low Shiller Price-Earnings Ratios

GuruFocus has assigned a low rating of 3 out of 10 to the company's financial strength and a very good rating of 7 out of 10 to its profitability.

The stock has a hold recommendation rating on Wall Street with an average target price of $32.31 per share.

Wells Fargo & Co

The third company under consideration is Wells Fargo & Co (NYSE:WFC), a U.S. bank major.

Wells Fargo & Co has a Shiller price-earnings ratio of 5.98, which is the result of a share price of $22.83 as of Sept. 23 and inflation adjusted earnings per share of $3.82 on average every year over the past 10 years.

The stock price has fallen by 53.7% over the past year, which determined a market capitalization of $94.06 billion and a 52-week range of $22 to $54.75.

3 Stocks With Low Shiller Price-Earnings Ratios
3 Stocks With Low Shiller Price-Earnings Ratios

GuruFocus has assigned a low rating of 4 out of 10 to the company's financial strength but a moderate rating of 4 out of 10 to its profitability.

On Wall Street, the stock's recommendation rating falls between hold and buy, while its average target price is $29.74 per share.

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

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This article first appeared on GuruFocus.