Zacks.com featured highlights General Motors, JD.com, Pfizer, StoneCo and Enersys

For Immediate ReleaseChicago, IL – April 10, 2025 – Stocks in this week’s article are General Motors Co. GM, JD.com JD, Pfizer PFE, StoneCo STNE and Enersys ENS.5 Low Price-to-Book Stocks to Add to Your Portfolio This SpringIn value investing, it is a common practice to pick stocks that are cheap but fundamentally strong. There are a number of investment styles for finding great stocks at attractive values.While considering valuation metrics, though price-to-earnings and price-to-sales are the first choices, the P/B ratio is also emerging as a convenient tool for identifying low-priced stocks that have high-growth prospects.Price-to-book ratio or P/B ratio is essentially the ratio of stock price to book value, i.e., how much an investor needs to pay for each dollar of the book value of a stock. It is calculated by dividing the current closing price of the stock by the book value per share.Here’s the formula of P/B ratio:P/B ratio = market capitalization/book value of equity.The P/B ratio helps identify low-priced stocks with high growth prospects. General Motors Co., JD.com, Pfizer, StoneCo and Enersys are some such stocks.Now, let us understand the concept of book value.What is Book Value?There 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.It 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.Understanding P/B RatioBy 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.A 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.For 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.But 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 such a 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.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 expenditure, high debt, service companies, or those with negative earnings.In 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.5 Low Price-to-Book StocksHere are five of the 16 stocks that qualified the screening:Headquartered 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 6.3%.General Motors 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.JD.com operates as an online direct sales company in China. Through its website www.jd.com and mobile applications, the company offers a selection of authentic products, including computers, mobile handsets, home appliances, automobile accessories, clothing and shoes, luxury goods, furniture and household products, personal care items, food and nutritional supplements and much more.JD presently has a Zacks Rank #1 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 32.3%.New York-based Pfizer is one of the largest drugmakers in the world, marketing a wide range of drugs and vaccines. Pfizercurrentlyhas a Zacks Rank #2 and a Value Score of A. PFE has a projected 3-5-year EPS growth rate of 13.8%.StoneCo provides financial technology solutions. The company offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online and mobile channels. StoneCo is based in Sao Paulo, Brazil.STNE has a Zacks Rank #1 and a Value Score of B. STNE has a projected 3-5-year EPS growth rate of 21.6%.Headquartered in Pennsylvania, EnerSys manufactures, markets and distributes various industrial batteries worldwide. It currently has a Zacks Rank of #2.ENS has a Value Score of A and a projected 3-5-year EPS growth rate of 18.0%.Get 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.The 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.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2442433/5-low-price-to-book-stocks-to-add-to-your-portfolio-in-aprilFollow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. 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Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want 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 Pfizer Inc. (PFE): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks