8 Stocks Trading Below Book Value

These well known companies are trading below their stated book values. In general, these names offer earnings growth, reasonable PE ratios and even dividends in some cases. With markets getting more volatile, it makes sense to stay focused on companies that can weather the storms because they are at undervalued levels. If we see a major market correction, I expect that these below book value stocks will outperform.

Here are the eight companies:

Hanwha Solarone Co., Ltd. (HSOL) shares are trading at $7.45. Hanwha is a leading maker of solar products. HSOL is estimated to earn about $1.35 per share in 2011. This puts the PE ratio at about 5 which is extremely undervalued for one of the leading low cost solar companies. Book value is listed at $8.67 per share which is less than the current share price!

KKR Financial (KFN) is trading around $9.52. KKR Financial is a specialty finance company. The 50 day moving average is $9.70 and the 200 day moving average is $8.57. These shares have traded in a range between $7.01 to $10.60 in the last 52 weeks. These shares have seen repeated insider buying. Book value is listed at $10.23.

Hartford Financial (HIG) is trading at $27.38. Hartford is one of the leading insurance companies in the United States. These shares have traded in a range between $18.81 to $31.08 over the past 52 weeks. The 50 day moving average is $28.32 and the 200 day moving average is $24.50. HIG earnings estimates are about $3.79 per share in 2011. This puts the PE ratio at about 7 which is very reasonable. The dividend is about 40 cents per year, which results in a yield of about 1.4%. The book value is stated at $44.44.

Lincoln National Corp. (LNC) shares trade at $30.03 per share. Lincoln is a major insurance company based in Pennsylvania. These shares have traded in a range between $20.65 to $33.55 over the past 52 weeks. The 50 day moving average is $29.91 and the 200 day moving average is $26.18. LNC earnings estimates are about $3.78 per share in 2011. This puts the PE ratio around 8. The dividend is 20 cents per year, which results in a yield of about .7%. The book value is stated at $40.56.

Citigroup (C) shares trade at $4.54 per share. Citigroup is a major bank with branches worldwide. These shares have traded in a range between $3.53 to $5.15 over the past 52 weeks. The 50 day moving average is $4.81 and the 200 day moving average is $4.27. C earnings estimates are about 43 cents per share in 2011. This puts the PE ratio around 10. The dividend is 20 cents per year, which results in a yield of about .7%. The book value is stated at $5.62.

Mizuho Financial Group, Inc. (MFG) has pulled back to about $3.92. Mizuho is a leading bank in Japan. The relative strength index is about 43. The 50 day moving average is $4.03 and the 200 day moving average is $3.41. MFG is estimated to earn about 50 cents per share this year. This puts the PE ratio at about 8. The book value is reported at $4.99.

Phoenix Companies, Inc. (PNX) is trading at $2.47. Phoenix is a life insurance and annuity company. The relative strength index is about 47. The 50 day moving average is $2.58 and the 200 day moving average is $2.31. PNX is estimated to earn about 43 cents per share this year. This puts the PE ratio at about 6. The book value is reported at $9.95.

WSP Holding Ltd. (WH) is trading at $1.24. WSP is a leading maker of steel products and pipes for the oil and gas inustry. The relative strength index is about 41. The 50 day moving average is $1.33 and the 200 day moving average is $1.37. WH is a possible turnaround play and recently received a huge order for about $91 million which you can see here. The book value is reported at $3.40.

The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in WH, C over the next 72 hours.