Autohome (ATHM, Financial), Nuveen Quality Municipal Income Fund (NAD, Financial) and Principal Financial Group (PFG, Financial) appear to qualify as value stocks given their low price-earnings ratios, low debt and good dividends. Each of these stocks pays at least a 3% dividend yield, which is about 1% greater than the yield on United States government-issued 10-Year Treasury Notes.
Autohome
Autohome (ATHM, Financial) is a China-based provider of an online marketplace for automobiles. The stock has dropped steadily this past year, as have Chinese stock markets in general due to the big tech regulatory crackdown. The price-earnings ratio for Autohome is 7, and it’s now trading at 3% discount to its book value – the type of valuation metrics generally favored by Benjamin Graham. The market capitalization is $3.41 billion. Autohome pays a 3.19% dividend yield.
The GuruFocus summary of financials for the company shows 10 good signs, three medium warning signs and one severe warning sign:
Nuveen Quality Municipal Income Fund
Nuveen Quality Municipal Income Fund is trading at an 11% discount to its book value and with a price-earnings ratio of 13. It pays a 4.95% dividend yield. This asset management stock has a market capitalization of 3.35 billion. The fund hit a 52-week low earlier this month and has bounced from there.
An investor in bonds (or a bond fund like Nuveen) would need to be aware of the Federal Reserve Bank’s actions involving interest rates, a major factor for these types of securities.
Shareholder equity in this stock greatly exceeds long-term debt. Average daily volume for the Nuveen Quality Municipal Income Fund comes to about 500,000 shares.
Here’s the GuruFocus summary of the financials, which finds three good signs and two medium warning signs:
Principal Financial Group
Principal Financial Group trades with a price-earnings ratio of 11.56 and at 1.19 times its book value. The big insurance company pays a quarterly dividend of $2.56 per share, which comes to 3.53% as an annualized yield.
Earnings per share are up this year by 24% and the past five-year earnings growth rate is 6.90%.
Long-term debt for the firm is much less than shareholder equity. Average daily volume for Principal Financial Group is 1.68 million shares.
A summary of the company’s financials by GuruFocus shows two good signs, five medium warning signs and two severe warning signs:
