Zacks.com featured highlights StoneCo, CVS Health, KT, KB Financial and USANA Health Sciences

For Immediate Release

Chicago, IL – August 6, 2025 – The stocks in this week’s article are StoneCo STNE, CVS Health CVS, KT Corp. KT, KB Financial Group KB and USANA Health Sciences USNA.

5 Low Price-to-Book Stocks to Add to Your Portfolio in August

While there are a host of valuation metrics, the first to cross one’s mind is the price-to-earnings ratio. However, in the case of loss-making companies, the price-to-earnings (P/E) ratio is negative. In such a scenario, price-to-sales (P/S) could indicate the hidden strength of the business.

The price-to-book ratio (P/B ratio) is also an easy-to-use tool for identifying low-priced stocks that have high-growth prospects.

The P/B ratio is used to calculate how much an investor needs to pay for each dollar of the book value of a stock. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

The P/B ratio helps identify low-priced stocks with high growth prospects. StoneCo, CVS Health, KT Corp., KB Financial Group and USANA Health Sciences are some such stocks.

Now, let us understand the concept of book value.

What Is Book Value?

There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.

It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.

Understanding P/B Ratio

By comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.

A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.

Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.

Here are five of the 19 stocks that qualified the screening:

StoneCo provides financial technology solutions. The company offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online and mobile channels. StoneCo is based in Sao Paulo, Brazil.

STNE has a Zacks Rank #1 and a Value Score of B. STNE has a projected 3-5-year EPS growth rate of 25.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Woonsocket, RI, CVS Health (formerly known as CVS Caremark Corporation) is a pharmacy innovation company with integrated offerings across the entire spectrum of pharmacy care.

CVS Health presently has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 11.4%.

Headquartered in Sungnam, South Korea, KT Corporation provides telecommunication services. Its services include mobile telecommunications services, telephone services, fixed-line and VoIP telephone services. It also provides interconnection services to other telecommunications companies, broadband Internet access services and other Internet-related services. It also offers information technology and network services.

KT has a Zacks Rank #2 and a Value Score of A. KT Corporation has a projected 3-5-year EPS growth rate of 50.4%.

KB Financial Group is a commercial bank in Korea. The company provides credit and related financial services mainly to individuals and small and medium-sized enterprises. It also provides a range of deposit products and related services to individuals and enterprises of all sizes.

KB Financial Group has a projected 3-5-year EPS growth rate of 11.9%. KB currently has a Zacks Rank #2 and a Value Score of A.

USANA Health Sciences develops and manufactures high-quality nutritional, personal care and weight management products. USANA Health Sciences currently has a Zacks Rank #2 and a Value Score of A. USNA has a projected 3-5-year EPS growth rate of 12.0%.

Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2667912/5-low-price-to-book-stocks-to-add-to-your-portfolio-in-august

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: [email protected]

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research