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A Trio of Low Price-Book Ratio Stocks for the Value Investor

GuruFocus.com
·3 min read

Investors who want to increase their chances of finding value may want to look for stocks whose market capitalization exceeds $2 billion, but that still trade at not more than 1.5 times their book value.

The following stocks as they meet the above-listed criteria. Furthermore, these stocks have received positive recommendation ratings from sell-side analysts on Wall Street.


AGCO

The first company to consider is AGCO Corp (NYSE:AGCO).

Shares of the Duluth, Georgia-based global manufacturer and distributor of agricultural equipment and related spare parts traded at a price of $47.29 per unit at close on March 30 for a market cap of around $3.57 billion.

The stock has a price-book ratio of 1.27, which is above the industry median of 1.

Year to date, the stock has declined 39% and now it trades substantially below the middle point of the 52-week range of $35.33 to $81.39.

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

Wall Street suggests a hold recommendation rating for shares of AGCO Corp and has established an average target price of $67.44 per share.

Ashland Global

The second company under consideration is Ashland Global Holdings Inc (NYSE:ASH).

Shares of the Covington, Kentucky-based global provider of specialty chemical solutions traded at a price of $52.21 per unit at close on March 30 for a market cap of around $3.15 billion.

The price-book ratio of 0.87 is better than the industry median of 1.08.

The share price has decreased by 32% so far this year and now it trades about 13.5% below the middle point of the 52-week range of $38.88 to $81.82.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and of 5 out of 10 for its profitability.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $73.10 per share.

Westinghouse Air Brake Technologies

The third company to consider is Westinghouse Air Brake Technologies Corp (NYSE:WAB).

Shares of the Pittsburgh, Pennsylvania-based provider of technology-based equipment, systems and services to railroad companies worldwide traded at a price of $49.22 per unit at close on March 30 for a market cap of around $9.44 billion.

The stock's price-book ratio of 0.95 is slightly higher than the industry median of 0.83.

Year to date, the stock has lost 37% and now it stands significantly below the middle point of the 52-week range of $35.07 to $81.75.

GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a high rating of 8 out of 10 for its profitability.

Wall Street recommends an overweight rating for shares of Westinghouse Air Brake Technologies Corp and has set an average price target of $80.70 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.