5 Low Price-to-Book Value Stocks to Buy as 2024 Draws to a Close

Zacks12-17

Value investors, over the years, have preferred price-to-earnings ratio or P/E as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings...

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However, in the case of loss-making companies that have a negative price-to-earnings...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-low-price-book-value-132800869.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>5 Low Price-to-Book Value Stocks to Buy as 2024 Draws to a Close</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n5 Low Price-to-Book Value Stocks to Buy as 2024 Draws to a Close\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 21:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/5-low-price-book-value-132800869.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Value investors, over the years, have preferred price-to-earnings ratio or P/E as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-low-price-book-value-132800869.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0345770993.USD","symbol_name":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","start_time":0,"source_url":"https://finance.yahoo.com/news/5-low-price-book-value-132800869.html","article_id":"2492796121","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/PhVyqpuxf6yhInFGDWOAlg--~B/aD02NzU7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/424fc7119f02cf30c16954c4ede661fc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492796121","pubTimestamp":1734442080,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Value investors, over the years, have preferred price-to-earnings ratio or P/E as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P/S ratio is considered in determining their true value.However, the price-to-book ratio , though used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with great returns.The P/B ratio helps to identify low-priced stocks with high growth prospects. General Motors Company GM, Fresenius Medical Care FMS, City Office REIT CIO, TPG RE Finance Trust TRTX and ZIM Integrated Shipping Services ZIM are some such stocks.Now, let us understand the concept of book value.Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expendit","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","TRTX":"TPG Re Finance Trust Inc.","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","BK4021":"海运","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","BK4223":"办公室房地产信托","BK4516":"特朗普概念","FMS":"费森尤斯医疗","BK4194":"办公房地产投资信托","BK4585":"ETF&股票定投概念","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4555":"新能源车","BK4196":"保健护理服务","BK4566":"资本集团","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC","BK4099":"汽车制造商","BK4559":"巴菲特持仓","CIO":"City Office REIT Inc","BK4588":"碎股","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0345770308.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) ACC","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","GM":"通用汽车","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4574":"无人驾驶","LU0477156797.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"RE\" (USD) ACC","BK4561":"索罗斯持仓","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","BK4596":"哈里斯概念","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","BK4110":"抵押房地产投资信托","ZIM":"以星航运"},"translate_title":"2024年即将结束时值得买入的5只低市净率股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZIM":1,"TRTX":1,"GM":1,"FMS":1,"CIO":0.9},"content_text":"Value investors, over the years, have preferred price-to-earnings ratio or P/E as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P/S ratio is considered in determining their true value.\nHowever, the price-to-book ratio (P/B ratio), though used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with great returns.\nThe P/B ratio is calculated as below:\nP/B ratio = market capitalization/book value of equity\nThe P/B ratio helps to identify low-priced stocks with high growth prospects. General Motors Company GM, Fresenius Medical Care FMS, City Office REIT CIO, TPG RE Finance Trust TRTX and ZIM Integrated Shipping Services ZIM are some such stocks.\nNow, let us understand the concept of book value.\nWhat is Book Value?\nThere are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.\nIt is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.\nUnderstanding P/B Ratio\nBy comparing the book value of equity to its market price, we get an idea of whether a company is under or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.\nA P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.\nFor example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.\nBut there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.\nMoreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.\nIn any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.\nScreening Parameters\nPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.\nPrice to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.\nPrice to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.\nPEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.\nCurrent Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.\nAverage 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.\nZacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.\nValue Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.\n5 Low Price-to-Book Stocks\nHere are five of the eight stocks that qualified the screening: \nHeadquartered in Detroit, General Motors is one of the world’s largest automakers. General Motors, along with its strategic partners, produces, sells and services cars, trucks and parts under four core brands — Chevrolet, Buick, GMC and Cadillac. General Motors assembles passenger cars, crossover vehicles, light trucks, sport utility vehicles, vans and other vehicles. GM has a projected 3-5-year EPS growth rate of 12.8%.\nGeneral Motors currently has a Zacks Rank #2 and a Value Score of A.\nBased in Bad Homburg, Germany, Fresenius Medical Care is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Fresenius Medical currently has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.\nFMS has a projected 3-5-year EPS growth rate of 16.0%.\nVancouver, Canada based City Office REIT is a real estate investment trust. It focuses on acquiring, owning, and operating office properties in the United States. The company invests in properties located in metropolitan areas in the Southern and Western United States. \nCity Office REIT has a Zacks Rank #2 and a Value Score of A at present. CIO has a projected 3-5-year EPS growth rate of 6.0%.\nSan Francisco based TPG RE Finance Trust is a commercial real estate finance company. It focuses primarily on directly originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments.\nTPG RE Finance Trust presently has a Zacks Rank #1 and a Value Score of B. The company has a projected 3-5-year EPS growth rate of 33.2%.\nZIM Integrated Shipping Services provides container shipping and related services, along with its subsidiaries. The company offers dry, reefer, project, out-of-gauge, breakbulk and dangerous cargo services and inland transport services. ZIM Integrated Shipping Services Ltd. is based in Haifa, Israel.\nZIM Integrated Shipping Services has a Zacks Rank #1 and a Value Score of A. ZIM has a projected 3-5-year EPS growth rate of 26.2%.\nGet the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.\nThe Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.\nClick here to sign up for a free trial to the Research Wizard today.\nDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.\nDisclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nFresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report\nGeneral Motors Company (GM) : Free Stock Analysis Report\nCity Office REIT, Inc. (CIO) : Free Stock Analysis Report\nTPG RE Finance Trust, Inc. (TRTX) : Free Stock Analysis Report\nZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492796121"}