Do you prefer stocks that offer both value and the possibility for growth? With this idea in mind, we ran a screen.

We began by screening for stocks paying dividend yields above 2% and sustainable payout ratios below 50% that have also outperformed the market over the last quarter, with quarterly performance above 10%.

We then screened for those that also appear undervalued relative to the Graham Number. The Graham Number is a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

*Tool provided by* *Kapitall**.*

Do you think these stocks will continue to outperform the market? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

** 1. Peoples Bancorp Inc. (NASDAQ:PEBO):** Operates as a holding company for Peoples Bank, National Association that provides financial products and services. Market cap at $199.4M, most recent closing price at $18.61. Dividend yield at 2.36%, payout ratio at 19.93%. Performance over the last quarter at 16.11%. Diluted TTM earnings per share at 1.57, and a MRQ book value per share value at 19.83, implies a Graham Number fair value = sqrt(22.5*1.57*19.83) = $26.47. Based on the stock's price at $19.05, this implies a potential upside of 38.93% from current levels.

** 2. Huntington Bancshares Incorporated (NASDAQ:HBAN):** Operates as the holding company for The Huntington National Bank that provides commercial and consumer banking services. Market cap at $5.56B, most recent closing price at $6.42. Dividend yield at 2.49%, payout ratio at 20.88%. Performance over the last quarter at 10.67%. Diluted TTM earnings per share at 0.62, and a MRQ book value per share value at 5.97, implies a Graham Number fair value = sqrt(22.5*0.62*5.97) = $9.13. Based on the stock's price at $6.61, this implies a potential upside of 38.06% from current levels.

** 3. Heartland Financial USA Inc. (NASDAQ:HTLF):** Provides commercial and retail banking services to businesses and individuals. Market cap at $306.22M, most recent closing price at $18.51. Dividend yield at 2.15%, payout ratio at 22.46%. Performance over the last quarter at 18.73%. Diluted TTM earnings per share at 1.76, and a MRQ book value per share value at 17.09, implies a Graham Number fair value = sqrt(22.5*1.76*17.09) = $26.01. Based on the stock's price at $18.90, this implies a potential upside of 37.64% from current levels.

** 4. Fidelity National Financial, Inc. (NYSE:FNF):** Provides title insurance, mortgage services, specialty insurance, and information services in the United States. Market cap at $4.2B, most recent closing price at $18.79. Dividend yield at 2.97%, payout ratio at 35.30%. Performance over the last quarter at 10.04%. Diluted TTM earnings per share at 1.81, and a MRQ book value per share value at 17.07, implies a Graham Number fair value = sqrt(22.5*1.81*17.07) = $26.37. Based on the stock's price at $19.21, this implies a potential upside of 37.25% from current levels.

** 5. SeaCube Container Leasing Ltd. (NYSE:BOX-OLD):** Operates as a container leasing company worldwide. Market cap at $368.67M, most recent closing price at $18.01. Dividend yield at 6.16%, payout ratio at 46.85%. Performance over the last quarter at 13.07%. Diluted TTM earnings per share at 1.99, and a MRQ book value per share value at 11.26, implies a Graham Number fair value = sqrt(22.5*1.99*11.26) = $22.45. Based on the stock's price at $18.1, this implies a potential upside of 24.05% from current levels.

** 6. Salem Communications Corp. (NASDAQ:SALM):** Operates as a radio broadcasting company that provides programming to audiences interested in Christian and family-themed content in the United States. Market cap at $111.87M, most recent closing price at $4.71. Dividend yield at 3.04%, payout ratio at 16.68%. Performance over the last quarter at 76.25%. Diluted TTM earnings per share at 0.16, and a MRQ book value per share value at 8.37, implies a Graham Number fair value = sqrt(22.5*0.16*8.37) = $5.49. Based on the stock's price at $4.69, this implies a potential upside of 17.04% from current levels.

*BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

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