Zacks.com featured highlights include KB Home, General Motors, The Greenbrier, JD.com and Barrick Gold
For Immediate ReleaseChicago, IL – October 29, 2024 – Stocks in this week’s article are KB Home KBH, General Motors Co. GM, The Greenbrier Cos GBX, JD.com JD and Barrick Gold Corp. GOLD.Choose These 5 Price-to-Book-Value Stocks for High ReturnsIn value investing, it is a common practice to pick stocks that are cheap but fundamentally strong. There are a number of investment styles to cater to investors looking for the best value stocks.Among them, the price-to-book ratio (P/B ratio) is an easy-to-use tool for identifying low-priced stocks, which have high growth prospects.The P/B ratio is used to calculate how much an investor needs to pay for each dollar of book value of a stock. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.P/B ratio = market capitalization/book value of equity.The P/B ratio helps to identify low-priced stocks with high growth prospects. KB Home, General Motors Co.,The Greenbrier Cos, JD.com and Barrick Gold Corp. 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 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.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 six stocks that qualified the screening:Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s revenues are generated from Homebuilding (accounting for 99.5% of fiscal 2023 total revenues) and Financial Services (0.5%) operations.KB Home has a projected 3-5-year EPS growth rate of 13.9%. KBH currently has a Zacks Rank #2 and a Value Score of A.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 12.8%.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.Headquartered in Lake Oswego, OR, The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries. It also engages in complementary leasing and services activities.The Greenbrier Companies has a Zacks Rank #1 and a Value Score of A at present. GBX has a projected 3-5-year EPS growth rate of 23.3%.JD.com operates as an online direct sales company in China. The company, through its website www.jd.com and mobile applications, 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 #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 17.6%.Barrick Gold Corp., based in Toronto, Canada, is one of the largest gold mining companies in the world. The company has many advanced exploration and development projects located across five continents.GOLD presently has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 32.9%.Get the remaining stock 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/2358311/choose-these-5-price-to-book-value-stocks-for-high-returnsZacks 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. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 General Motors Company (GM): Free Stock Analysis Report KB Home (KBH): Free Stock Analysis Report Barrick Gold Corporation (GOLD): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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