10 Buys With Historically Low Price to Book Ratios

by: Investment Underground

by Wilson Wong

We are always looking for new up and coming stocks, along with resurging old stocks. We have searched for promising companies that yield encouraging profits. The stocks below all have historically low price/book ratios. Here is what we found:

Hudson City Bancorp Inc. (HCBK): Hudson City Bancorp Inc. is the banking holding company for Hudson City Savings Bank. It has an 8.90 P/E ratio, and with a very impressive dividend yield of 6.1538, it will be sure to lure many investors. HCBK is also halving its dividend. P/B stands at an outstanding low of .87. On March 28th, the company stated that it will pay off $12.5 billion in debt and by restructuring, it will lower its first-quarter after-tax earning by around $644 million, which is about $1.30 per share. Shares trade at $9.75 during time of writing.

Computer Sciences Corporation (CSC): Computer Sciences Corporation is one of the largest information technology companies in America, with over $16 billion in revenue recorded in 2010. It has a 9.30 P/E ratio and a solid 1.61% dividend yield. It has an incredible P/B of 1.07. On April 1st, CSC finalized a deal with the Australian healthcare software provider iSOFT, which would allow it to continue expanding in the life sciences sector. Investors that want to break into the information technology market should take a look at CSC stocks, which, at the time of writing, is priced at $49.40.

Navigators Group, INC. (The) (NAVG): Navigators Group Inc. is one of the top export-import service providers in America today. This company is primarily involved in the international trade of precious stones, industrial minerals, crude oil, and agricultural products. It has a 12.10 P/E ratio and over the past year, its stock has risen more than 30%, from $36.86 to $54.59. Its P/B stands at a 1.00 and the company stock currently trades at $52.40.

Brookline Bancorp Inc. (BRKL): Brookline Bank is a bank that provides financial services. It has a 22.60 P/E ratio and a dividend yield of 3.2412. P/B is an amazing 1.24. This stock is a great opportunity for those who wish to purchase a cheap bank stock. Its deposit growth has increased by 10.8% from 2009 to 2010, and shows no signs of decrease. The company has also been cleared to buy First Ipswich Bancorp in a transaction that is worth about $19.7 million. Brookline Bancorp Inc. stocks stand at $10.48 at the time of writing.

CVS Corp. (CVS): This company is one of the largest pharmaceutical service providers in the United States, with a 2009 revenue of over $98 billion. It is listed as #18 in the 2010 Fortune 500. It has a 13.50 P/E ratio and a dividend yield of 1.438, along with a P/B of 1.26. Stock prices have been increasing over the past few weeks and many investors will find that this choice in stock will be sure to pay off in the near future. At the time of writing, CVS trades at $34.77.

Best Buy Co. Inc. (BBY): If you are looking for a consumer electronics company, look no further. It is the largest retailer of consumer electronics in the United States. It has a 9.50 P/E ratio, a P/B of 1.52, and a solid 2.1314 dividend yield. Best Buy has been struggling, with store sales and income reporting a 3% and 7% decrease, respectively. However, its P/E ratio indicates that it should rebound and when it does, investor would be glad that they bought the stock at its current price, $28.15.

Novartis AG (NVS): Novartis is a world leader in pharmaceutical research and development. It has a P/E ratio of 12.80 and a dividend yield of 0.433. P/B stands at 1.98. This company’s stock price has been consistent in the past, with no indication of failure in the near future. On March 22, it bought 85% of the Chinese vaccines maker Zhejiang Tianyuan Bio-Pharmaceutical Co, which is just another indication of its desire to further expand into the world’s market. The stock stands at $54.56 at the time of writing.

Royal Gold Inc. (RGLD): Royal Gold is a precious metals company involved with gold, silver, zince, lead and copper. In 2009, it ranked 10th among the fastest growing small businesses in America. It boasts a 74.70 P/E ratio and a 0.844 dividend yield. P/B stands at 2.01. Gold prices continue to rise, and Royal Gold is one of the best choices to purchase if one wants to break into the gold market. At the end of 2010, the company was receiving royalty payments from 34 mines across the world. The stock stands at $52.09 at the time of writing.

Vina Concha y Toro S.A. ADR (VCO): This company is the leading wine exporter in Latin America. It is also located in over 130 countries. It has a 19.60 P/E ratio and a dividend yield of 0.797, along with a P/B of 2.35. This major wine company is one that investors cannot ignore. Not only is it located in Chile, a major emerging market, and shows signs of continued growth. The stock stands at $47.75 at the time of writing.

Haemonetics Corp. (HAE): Haemonetics is a global company that markets automated blood processing systems. This stock is one of the best stocks to purchase from the healthcare industry. It has a P/E ratio of 26.20 and its EPS during Q3 of 2010 increased from $.82 to $.89. Its P/B stands at a respectable 2.60. Current stock prices stand at $66.39.

Quest Diagnostics Inc. (DGX): This company is the world’s leading provider of diagnostic testing, information and services. It is a member of the Fortune 500 and the S&P 500, with a P/E ratio of 14.20 and a dividend yield of 0.692. P/B stands at 2.44. On Monday April 4, Quest Diagnostics finalized its purchase of Thermo Fisher Scientific Inc.’s Athena Diagnostics business, worth over $740 million. Stocks stand at $57.74 at the time of writing.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.