If you want to have a higher chance for your search for value opportunities to be successful, then you may want to screen the market for stocks whose Graham blended multiplier is below 22.5. Created by Benjamin Graham, the pioneer of value investing, the multiplier is equal to the stock's price-earnings ratio multiplied by its price-book ratio.
Therefore, investors may want to consider the following stocks, as they meet the above criteria.
P.A.M. Transportation Services Inc.
The first stock that makes the cut is P.A.M. Transportation Services Inc. (PTSI, Financial), a Tontitown, Arkansas-based trucking and logistics company.
The stock has a Graham blended multiplier of 19.30 as the price-earnings ratio is 8.50 and the price-book ratio is 2.27.
P.A.M. Transportation Services Inc. was trading at around $69.90 per share on Wednesday with a market capitalization of $400.38 million.
The stock has risen 107.5% over the past year for a 52-week range of $32.55 to $70.71.
GuruFocus assigned a rating of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
Currently, the company is not distributing dividends.
On Wall Street, the stock has one recommendation rating of buy and a target price of $67 per share.
SuRo Capital Corp
The second stock that matches the criteria is SuRo Capital Corp (SSSS, Financial), a Woodside, California-based asset management company focusing on investments in late-stage venture-backed private firms.
The stock has a Graham blended multiplier of 1.63 as the price-earnings ratio is 1.7 and the price-book ratio is 0.96.
SuRo Capital Corp was trading at $15.91 per share on Wednesday with a market capitalization of approximately $422.50 million.
The stock has risen by 24.3% over the past year, determining a 52-week range of $8.03 to $16.25.
GuruFocus assigned a rating of 6 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
Currently, the company pays dividends. On June 30, shareholders received $2.50 per common share. The next quarterly payment, $2.25 per common share, is scheduled for Sept. 30. The trailing 12-month dividend yield is 20.23%, while the forward dividend yield is 32.99% as of Aug. 11.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $18 per share.
Mid Penn Bancorp Inc
The third company that makes the cut is Mid Penn Bancorp Inc (MPB, Financial), a Millersburg, Pennsylvania-based regional bank serving individuals, partnerships, non-profit organizations and corporations through approximately 36 full-service retail banking branches located in Pennsylvania.
The stock has a Graham blended multiplier of 6.26 as the price-earnings ratio is 6.96 and the price-book ratio is 0.90.
Mid Penn Bancorp Inc was trading at $26.95 per share on Wednesday, determining a market capitalization of $307.95 million.
The stock has gained 26.23% over the past year for a 52-week range of $17.20 to $29.87.
GuruFocus assigned a rating of 2 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
The company is currently distributing quarterly dividends. Shareholders received 20 cents per common share on May 24, and they will receive the same amount on Aug. 23. The payment generates a trailing 12-month dividend yield of 2.87% and a forward dividend yield of 2.97% as of Aug. 11.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $31 per share.
Disclosure: I have no positions in any securities mentioned.
