Key Takeaways Five stocks were screened for low P/B ratios, solid value scores, and strong projected EPS growth. STNE shows the highest 3-5 year EPS growth rate at 26.3%, followed by PSFE at 17.9% and USNA. All selected stocks have a Zacks Rank of 1 or 2 and meet key valuation, liquidity, and pricing criteria.Value investing offers an opportunity to enter the market and grab stocks that have otherwise been overlooked by the majority of investors and are thus trading at cheap multiples.Though price to earn ...

Core Points - Sanofi is launching its global employee shareholder plan, Action 2025, on June 10, 2025, for approximately 70,000 employees across 55 countries, marking the program's 11th year [1][2] - In 2024, over 32,000 employees, representing 40% of the workforce, participated in the program, and nearly 90,000 current or former employees now hold about 2.55% of Sanofi's capital [1][2] Employee Participation - The subscription price for shares will be set at €72.97, which is a 20% discount based on the average of the 20 opening prices from May 7 to June 3, 2025 [2] - Employees can purchase up to 1,500 shares, with a maximum payment not exceeding 25% of their gross annual salary, and for every five shares subscribed, one free matching share will be offered, up to a maximum of four matching shares per employee [2][3] Subscription Details - Eligible employees must have three months of employment by the closing date of the offer period, with the subscription period running from June 10 to June 30, 2025 [3] - The total number of shares offered is limited to 1% of Sanofi's share capital as of January 29, 2025, after accounting for a previous capital increase reserved for employees [4] Share Characteristics - The new shares will be fully fungible with existing shares and will acquire dividend rights starting January 1, 2025, with voting rights exercised directly by employees [5] - Shares subscribed in France must be held for approximately five years, while those subscribed outside France may have a holding period of three years, depending on local regulations [6] Trading and Compliance - Admission of the shares to trading on the Euronext Paris market will be requested after the completion of the capital increase [7] - The offer will only be made in countries where all necessary registration and notification procedures have been completed [9]

Group 1 - The article initiates coverage on Zoetis (ZTS) with a Strong Buy rating and a price target of $219.26, highlighting its position as a global leader in animal health therapeutics, diagnostics, and vaccines for both companion and livestock species [1] - The Strong Buy case is supported by Moretus Research's structured approach to equity research, focusing on identifying companies with durable business models and mispriced cash flow potential [1] - Moretus Research emphasizes a disciplined analysis that combines fundamental research with a judgment-driven process, aiming to provide actionable insights and a strong filter for relevant information in equity analysis [1] Group 2 - The research methodology prioritizes underappreciated companies that are undergoing structural changes or temporary dislocations, which can lead to asymmetric returns through dispassionate analysis [1] - Valuation techniques are based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability and simplicity [1] - Moretus Research aims to elevate the standard for independent investment research by delivering professional-grade insights and actionable valuations [1]

Valuation Metrics - The price-to-earnings (P/E) ratio is a common valuation metric, but for companies with losses or minimal profits, the price-to-sales (P/S) ratio is more effective in identifying undervalued stocks [1] - The price-to-book (P/B) ratio is another useful tool for identifying low-priced stocks with high growth potential, calculated by dividing the stock's current price by its book value per share [2][6] Book Value - 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 [4][5] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][7] Stock Examples - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5%, currently holding a Zacks Rank of 2 and a Value Score of A [16][17] - Pediatrix Medical Group (MD) provides specialized physician services with a projected EPS growth rate of 9.5% and also holds a Zacks Rank of 2 and a Value Score of A [18][19] - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 13.8% and maintains a Zacks Rank of 2 and a Value Score of A [19] - StoneCo (STNE) offers financial technology solutions with a projected EPS growth rate of 26.3%, holding a Zacks Rank of 1 and a Value Score of B [20] - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 9.6% and a Zacks Rank of 2 with a Value Score of A [21][22] Screening Parameters - Stocks with a P/B ratio less than the industry median indicate potential for price appreciation [12] - A P/S ratio lower than the industry average makes a stock more attractive [12] - A P/E ratio (F1) below the industry median is considered favorable [13] - A PEG ratio of less than 1 suggests that a stock is undervalued relative to its growth prospects [14] - Stocks should have a minimum trading price of $5 and an average 20-day volume of at least 100,000 for better liquidity [15]