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5 Low Price-to-Book Stocks to Consider Adding to Your Portfolio in May
In valuation analysis, while ratios like the price-to-earnings (P/E) and price-to-sales (P/S) multiples are more commonly used by investors, the often-overlooked price-to-book (P/B) ratio can also be a practical tool for spotting potentially undervalued stocks with attractive return potential. The P/B ratio compares a company’s current market price with the book value of its equity.
The formula is:
P/B ratio = Market price per share ÷ Book value per share
Book value per share is calculated by dividing a company’s total shareholders’ equity by its number of outstanding shares.
The P/B ratio indicates how much investors are willing to pay for each dollar of a company’s net assets. For example, if a stock trades at $10 per share and its book value per share is $5, the P/B ratio is 2. This means investors are willing to pay two times the company’s book value for each share.
This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties, Strategic Education, Hilton Grand Vacations, Nexa Resources and Avnet.
Let us understand the concept of book value.
What is Book Value?
There are several ways in 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 went 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 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. Like P/E or P/S ratios, it is always better to compare the P/B ratio 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.
5 Low Price-to-Book Stocks
Here are five of the 10 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 9.7%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #1 and a Value Score of B. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #1 and a Value Score of B. AVT has a projected 3-5-year EPS growth rate of 28.1%.
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.
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.
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Zacks.com featured highlights include Hudson, Strategic, Hilton, Nexa and Avnet
For Immediate Release
Chicago, IL – May 13, 2026 – Stocks in this week’s article are — like Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , Hilton Grand Vacations (HGV - Free Report) , Nexa Resources (NEXA - Free Report) and Avnet (AVT - Free Report) .
5 Low Price-to-Book Stocks to Consider Adding to Your Portfolio in May
In valuation analysis, while ratios like the price-to-earnings (P/E) and price-to-sales (P/S) multiples are more commonly used by investors, the often-overlooked price-to-book (P/B) ratio can also be a practical tool for spotting potentially undervalued stocks with attractive return potential. The P/B ratio compares a company’s current market price with the book value of its equity.
The formula is:
P/B ratio = Market price per share ÷ Book value per share
Book value per share is calculated by dividing a company’s total shareholders’ equity by its number of outstanding shares.
The P/B ratio indicates how much investors are willing to pay for each dollar of a company’s net assets. For example, if a stock trades at $10 per share and its book value per share is $5, the P/B ratio is 2. This means investors are willing to pay two times the company’s book value for each share.
This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties, Strategic Education, Hilton Grand Vacations, Nexa Resources and Avnet.
Let us understand the concept of book value.
What is Book Value?
There are several ways in 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 went 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 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. Like P/E or P/S ratios, it is always better to compare the P/B ratio 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.
5 Low Price-to-Book Stocks
Here are five of the 10 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 9.7%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #1 and a Value Score of B. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #1 and a Value Score of B. AVT has a projected 3-5-year EPS growth rate of 28.1%.
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For the rest of this Screen of the Week article please visit Zacks.com at:
https://www.zacks.com/stock/news/2919083/5-low-price-to-book-stocks-to-consider-adding-to-your-portfolio-in-may
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: pr@zacks.com
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.