With broader U.S. stock market gauges like the Dow Jones Industrial Average and S&P 500 hitting new all-time highs this week, it’s easy to wonder whether the market gained altitude too quickly to sustain these unprecedented levels.
Right now, it’s also easy to be concerned about an earnings season in which many companies raised doubts about the sustainability of their top- and bottom-line trends.
If you feel a bit nervous about the market’s ability to maintain its ascent, look at the names in the table below. I think they could appeal to anyone who wants every dollar to buy as much value as possible.
These 15 companies are the U.S.-listed stocks — including ADRs of foreign-domiciled firms — that survived these tests:
- Substance: Listed on a major U.S. stock exchange and with revenue and market capitalization both at $1 billion or more.
- Growth History: Positive five-year annualized earnings per share growth.
- Shareholder Returns: Current indicated dividend yields of at least 1.0%.
- Reasonable Valuation: Price/earnings ratios of 15 or less.
And, most important …
- Abundant Net Assets: Priced below book value (price/book ratio less than 1.0).
There’s something else that these stocks offer, which is that they are trading below their price-to-book value. In the chart below you’ll see oil & gas exploration & production company Petrobras Argentina (PZE) has a price-to-book ratio of 0.75.
Book value lets you know whether a stock is over- or underpriced. A stock buyer can purchase PZE at a roughly 25% discount — or, in other words, spend 75 cents for $1 in net value (minus intangibles and liabilities).
See the 14 other "priced below book values" names below that are worth a second look if you’re in the market for what still has room to run in the current rally.
Tony Sagami is on fire …
Tony Sagami has been leading his subscribers a remarkable string of double- and triple-digit winners.
Just yesterday, they were grab up to a 33.7% gain in Volkswagen … and that’s after an eye-popping 147% profit they could have banked in just a 2-day trade on Nike!
Right now he’s sitting on open gains of 29%, 34%, 38% and 54% … and his extraordinary ABR Indicator — the trading system he’s using to leave the S&P in the dust — is starting to sound the alarm for more, and potentially even bigger, opportunities ahead.
Below Book, Above Expectations?
I was a bit surprised at the geographic diversity on this select list. Only five call the United States home. Two come from Japan, followed by one stock each from South Africa, Brazil, China, South Korea, Argentina, Canada, Chile and Peru.
The list is diversified by region, too, with six from North America, four from Asia, four from Latin America and one from Africa.
Priced Below Book Value:
15 Asset-Rich Stocks for Nervous Investors
We have sector diversity as well. Three are from the historically conservative insurance industry and two each come from the gold, utilities, banking and real estate industries.
A telecom, an energy firm, an energy-burning airline, and a software provider fill out the list.
Let the Book be the Beginning of Your Research …
The many countries and regions represented here could also come with some potential currency and political uncertainties — and we saw just this month that the United States isn’t completely immune to such problems.
In fact, I raised the possibility that some countries south of the U.S. border are endowed with surprisingly talented central bankers just two months ago. See my Aug. 21 Uncommon Wisdom Daily article, "Why Latin America Has the World’s Sanest Central Bankers."
I made the table by filtering U.S. listed stocks through set parameters. I’m not giving an outright endorsement to any of these stocks. I would want to do more careful research before making a buy recommendation.
Nevertheless, these computer-selected choices happen to include some stocks that I followed very closely in the past. I like the characteristics on this list, and I know some of my Uncommon Wisdom Daily colleagues are familiar with the table’s two gold miners.
Prevent Altitude Sickness
As the Market Marches Higher
I haven’t succumbed to altitude sickness as I manage the Global Trend Trader model portfolio. My current recommendations represent geographic diversity and a wide range of economic sectors.
So, as you can see, there’s still plenty of value left in the markets. In fact, my readers just exited a different Petrobras — the Brazil-based operations, which were also undervalued when I recommended buying the stock this summer — for about a 16% gain last week.
I like growth stocks and special situations, but I also consider the kind of asset plays and defensive investments you see on this list. I urge you to do the same.
I won’t be surprised if one or more components of these stocks—or similar value investments — find their way onto my Global Trend Trader buy list at some point. Keep your eyes on these asset-rich listings. You can bet I will.
P.S. Forbes just named Vladimir Putin the "World’s Most Powerful Person," and he could receive a Nobel Peace Prize for cajoling his Syrian allies into surrendering their chemical weapons.
President Obama came in at No. 2, and James DiGeorgia agrees that the leader of the free world is no match for this diabolical mastermind. Putin’s elite KGB training has hardwired him to kill — ordering bombings, invading countries, authorizing brutal wars, supplying our enemies with deadly weapons and terrorizing innocent civilians.
Everything he does is to empower his country and, even above that, himself. And if it happens to be at the expense of the United States (like sheltering the NSA’s Edward Snowden), even better!
This man’s power knows no bounds. And now, James has uncovered compelling evidence that Putin is hatching a secret plot to bring the economies of Western industrial nations to their knees. Here’s how he’s going to do it …