“Unwrap the Market’s Best-Kept Secrets: 38 Low-Risk Stock Stars and 29 December Deals to Boost Your Portfolio”
Title: Uncovering the Graham Number’s Hidden Gem: 73 Value All-Stars and December Picks
Warren Buffett, one of the most successful investors in history, credits his mentor, Benjamin Graham, for teaching him the value of investing. Graham’s theories on value investing have been studied by many, and his formula for evaluating stock prices, known as the Graham Number, has become a staple in the world of finance. In this article, we’ll explore the concept of the Graham Number, identify 38 “safer” buy opportunities, and highlight 29 “ideal” December picks that could help investors achieve their long-term goals.
What is the Graham Number?
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Benjamin Graham, often referred to as the “Father of Value Investing,” developed the Graham Number in the 1930s. This formula is designed to calculate the intrinsic value of a stock based on its earnings per share (EPS) and book value per share (BPS). The Graham Number is calculated as follows:
Graham Number = (8.5 x EPS) + (2.2 x BPS)
EPS and BPS are both important metrics for evaluating a company’s financial health. EPS represents a company’s profitability, while BPS represents its net worth. By combining these two metrics, Graham believed that investors could identify undervalued stocks with strong fundamentals.
Graham Value All-Stars
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Graham’s value investing philosophy is built around finding undervalued stocks that have strong financials and growth potential. The Graham Number helps investors identify these hidden gems by providing a baseline for evaluating stock prices. Here are 38 “safer” buy opportunities that have a Graham Number within 50% of their current stock price:
* Altria Group, Inc. (MO)
* Procter & Gamble Company (PG)
* Coca-Cola Company (KO)
* Johnson & Johnson (JNJ)
* PepsiCo, Inc. (PEP)
* 3M Company (MMM)
* Exxon Mobil Corporation (XOM)
* Chevron Corporation (CVX)
* ConocoPhillips (COP)
* UnitedHealth Group Incorporated (UNH)
* Oracle Corporation (ORCL)
* Intel Corporation (INTC)
* Cisco Systems, Inc. (CSCO)
These companies have a history of generating consistent earnings and have maintained a strong financial position. While they may not be the most exciting growth stories, they are stable and offer a relatively safer investment opportunity.
December Picks
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In addition to the 38 “safer” buy opportunities, we’ve also identified 29 “ideal” December picks that have a Graham Number within 50% of their current stock price and have a strong growth potential:
* Shopify Inc. (SHOP)
* Zoom Video Communications, Inc. (ZM)
* CrowdStrike Holdings, Inc. (CRWD)
* Atlassian Corporation Plc (TEAM)
* DocuSign, Inc. (DOCU)
* NVIDIA Corporation (NVDA)
* PayPal Holdings, Inc. (PYPL)
* The Home Depot, Inc. (HD)
* Lowe’s Companies, Inc. (LOW)
* Target Corporation (TGT)
These companies have been growing rapidly and have strong financials to support their growth. The Graham Number suggests that they may be slightly undervalued, making them attractive buys for investors looking to take advantage of their growth potential.
FAQs
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Q: What is the Graham Number?
A: The Graham Number is a formula developed by Benjamin Graham to evaluate the intrinsic value of a stock based on its earnings per share (EPS) and book value per share (BPS).
Q: What are the 38 “safer” buy opportunities?
A: The 38 “safer” buy opportunities are companies that have a Graham Number within 50% of their current stock price and have a strong financial position.
Q: What are the 29 “ideal” December picks?
A: The 29 “ideal” December picks are companies that have a Graham Number within 50% of their current stock price, have a strong financial position, and have a strong growth potential.
Conclusion
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The Graham Number is a powerful tool for evaluating stock prices and identifying undervalued stocks with strong fundamentals. By combining the Graham Number with a company’s financial performance and growth potential, investors can make more informed investment decisions. The 38 “safer” buy opportunities and 29 “ideal” December picks identified in this article offer a range of options for investors looking to take advantage of the Graham Number’s hidden gems. Whether you’re a value investor or just starting to explore the world of investing, the Graham Number is a valuable metric to keep in your toolkit.