Investors looking for undervalued opportunities in the financial sector might want to consider these 5 stocks with big market capitalizations that are currently trading below their book value. With the tech sector trading at high multiples and huge premiums to book value, contrarian investors may find these stocks appealing. Citigroup, with a market capitalization of $117.46 billion, is trading at 62% of book value with a price-earnings ratio of 18. Although earnings over the past 5 years have decreased by 9.56%, this year’s earnings are up by 46%. The bank also pays a dividend of 2.59%.
Citizens Financial Group, with a market cap of $15.64 billion, is now trading at a 28% discount from book value with a price-earnings ratio of 12.35. While earnings have decreased by 2.34% over the past 5 years, this year’s earnings are up by 0.76%. Investors in Citizens Financial Group also benefit from a dividend of 4.93%. Capital One Financial, with a market capitalization of $54.80 billion, can be purchased at 95% of book value. The stock has a price-earnings ratio of 11.23 with earnings up by 9.50% this year. Over the past 5 years, earnings have increased by 0.22%. The company pays a dividend of 1.67%.
M & T Bank, a regional bank with a market capitalization of $24.06 billion, is trading at a 4% discount from book value with a price-earnings ratio of 9.76. While earnings have decreased by 10.65% this year, they have increased by 4.38% over the past 5 years. Investors can also benefit from a dividend of 3.60%. State Street Corp, with a market capitalization of $21.89 billion, is currently trading at book value with a price-earnings ratio of 13.54. Although earnings have decreased by 2.67% over the past 5 years, this year’s earnings are up by 3.10%. The company pays a dividend of 3.72%.
As the financial sector continues to face challenges and uncertainties, investors seeking value opportunities may find these 5 stocks attractive due to their low valuations relative to their market capitalizations. With dividends being paid out by each of these companies, investors can also benefit from additional income while potentially waiting for the stock price to appreciate. By carefully evaluating the fundamentals and financial performance of these companies, investors can make informed decisions on whether these undervalued stocks present a compelling investment opportunity in the current market environment.
