WBD - Nasdaq Bear Market: These 3 Stocks Are Trading Below Their Book Values
2023-03-14 06:03:00 ET
The collapse of SVB Financial's Silicon Valley Bank last week likely threw a monkey wrench into the macroeconomic machinery that was working to end the current bear market. Investors should expect the market to remain volatile, at least in the near term, as it absorbs this latest news. But that doesn't mean you need to wait to find good deals, particularly among stocks trading on the Nasdaq Composite index, which is down about 12.6% over the past year.
Three Nasdaq stocks that look like potential bargains and that investors don't even have to pay book value for right now are Viatris (NASDAQ: VTRS) , Warner Bros. Discovery (NASDAQ: WBD) , and Kraft Heinz (NASDAQ: KHC) . Here's a look at why investors may be discounting these three stocks, and why they could make for great buys today.
Generic and branded drugmaker Viatris has consistently been trading below its book value over the past year. And at a price-to-book (P/B) multiple of around 0.60, investors are significantly discounting the stock. One reason for that is Viatris has significant debt on its books, totaling $19.5 billion as of the end of last year, putting it at a debt-to-equity (D/E) ratio of 0.9.
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Nasdaq Bear Market: These 3 Stocks Are Trading Below Their Book Values