5 Low Price-to-Book Stocks That Value Investors Can Buy

Zacks Investment Research has identified five low price-to-book (P/B) stocks—StoneCo, PagSeguro Digital, KT Corporation, Deluxe, and Itron—as compelling value investment opportunities. These companies were selected based on a rigorous screening methodology that includes favorable P/B, P/S, P/E, and PEG ratios relative to industry medians, along with strong Zacks Ranks (#1 or #2) and Value Scores of A or B. The featured stocks demonstrate projected 3-5 year EPS growth rates ranging from 11.4% to 51.7%, signaling potential for significant upside for value-oriented investors.

Analysis

The analysis identifies five stocks—StoneCo (STNE), PagSeguro (PAGS), KT Corp (KT), Deluxe (DLX), and Itron (ITRI)—as compelling value propositions based on a multi-factor screening model. The core of the methodology is a low Price-to-Book (P/B) ratio relative to industry peers, supplemented by favorable Price-to-Sales, Price-to-Earnings, and a PEG ratio below 1.0. This quantitative screen suggests the companies are undervalued not only on an asset basis but also in relation to their sales, earnings, and growth outlook. Crucially, the selected firms are not presented as potential value traps, as they are filtered for quality using Zacks Ranks of #1 (Strong Buy) or #2 (Buy) and strong Value Scores (A or B). The investment thesis is further bolstered by significant forward-looking earnings potential, with projected 3-5 year EPS growth rates ranging from 11.4% for PagSeguro to a notable 51.7% for KT Corp. The list is geographically and sector-diverse, spanning Brazilian fintech (STNE, PAGS), South Korean telecommunications (KT), and U.S. technology providers in payments (DLX) and utility services (ITRI).

Key Decisions for Investors

• Investors seeking 'Growth at a Reasonable Price' (GARP) should consider this list, as the combination of low valuation multiples and strong projected EPS growth presents a compelling entry point.
• KT Corp and PagSeguro warrant particular attention due to their top-tier Zacks Rank #1 (Strong Buy) and Value Score of 'A', with KT's projected 51.7% EPS growth signaling exceptional potential.
• While the valuation screen is positive, conduct further due diligence on the specific macroeconomic and currency risks associated with the Brazil-based fintechs, StoneCo and PagSeguro.
• Consider the high-growth technology names, Itron (30.0% projected EPS growth) and StoneCo (30.3% projected EPS growth), as potentially undervalued plays on utility modernization and digital commerce, respectively.