The all sell below their stated book value, a sure sign of just how unwanted they’ve become. They languish sadly in the remote, distant land of the very, very low price/earnings ratio. These are the most unloved stocks on the New York Stock Exchange.
Will some contrarian stock picker eventually find them attractive for who they are? Are there any remaining bold investors out there who track down equities this cheap and out-of-favor? I don’t know, but here are 5 NYSE-listed stocks that few want to even dance with:
IAMGOLD Corporation is a Canadian-based mining outfit that is now trading at a level just below its book value. The price/earnings ratio is a staggeringly low 5.
IAG has a solidly positive earnings record from the standpoint of the past 5 years and looking at the last year by itself. The levels of debt are low. No dividend is paid.
Molson Coors is another one that is now trading at just below book. Earnings have been off this year — but the 5-year record still looks positive. The price/earnings ratio is a meager 12.
The stock traded at 90 last September and now goes for 60. Stifel Nicolaus analysts recently took it off their buy list — saying, essentially, that beer is not as popular as it used to be, among other factors.
Oriental Financial Group is based in San Juan, Puerto Rico and right now trades at a 19% discount to its book value.
With a price earnings ratio of 15 and little debt, the bank lost money over the last year but its 5-year record is solidly positive. Oriental is paying a 1.68% dividend. The short float comes to 6.5%. Free cash flow is green.
Companhia de Saneamento Basico do Estado de Sao Paulo is a water utility in Brazil and NYSE-listed. This is another one where earnings last year were in the red but the 5-year earnings track record is positive.
The price/earnings ratio is 7.35. Debt levels are relatively low and the dividend yield here is 4. 39%. The stock trades at just a bit below its book value. Citigroup just upgraded the utility from “sell” to “neutral,” for what it’s worth.
Signet Jewelers, based in Bermuda, lost money last year and the stock has dropped significantly — from 75 to 40 since mid-November, 2017. This puts it at a 5% discount to book.
The price/earnings ratio is 7.9. The 5-year record of earnings remains positive despite the recent losses. The levels of debt are low. A 3.75% dividend is being paid. The short float is up to almost 14% — if all of those shorts are ever forced to cover, it could be quite a boost to price.
I do not hold positions in these stocks. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. Always do your own independent research, due diligence and seek professional advice from a licensed investment adviser.
Metrics courtesy of FinViz.com
