Buy These 5 Best Value Stocks to Boost Your Portfolio in December

Core Insights - The article emphasizes the importance of the price-to-book (P/B) ratio as a valuation tool for identifying undervalued stocks with high growth potential, alongside more commonly used ratios like price-to-earnings (P/E) and price-to-sales (P/S) [1][9]. Understanding P/B Ratio - The P/B ratio is calculated by dividing the market capitalization by the book value of equity, providing insight into whether a stock is under- or overvalued [5][9]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued and a good buy, while a ratio above one may indicate overvaluation [5][6]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Limitations of P/B Ratio - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [8][10]. Screening Parameters for Value Stocks - The article outlines a screening process that includes criteria such as P/B, P/S, P/E, and PEG ratios to identify value stocks trading above $5 with strong liquidity [11][12][13][14]. Identified Value Stocks - Five stocks identified as low P/B stocks include: - StoneCo (STNE): A financial technology company with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [15]. - General Motors (GM): A major automaker with a projected EPS growth rate of 8.5% and a Zacks Rank of 1 [16]. - EnerSys (ENS): A manufacturer of industrial batteries with a projected EPS growth rate of 15.0% and a Zacks Rank of 2 [17]. - Deutsche Bank (DB): The largest bank in Germany with a projected EPS growth rate of 26.04% and a Zacks Rank of 2 [19]. - Keros Therapeutics (KROS): A biotech firm with a projected EPS growth rate of 36.5% and a Zacks Rank of 1 [19].