FORTUNE MAGAZINE:
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Fortune 40: Deep value
By David Stires, Fortune Magazine writer

To find our deep-value stocks, we adapted techniques developed by Benjamin Graham, the father of value investing. Specifically, we designed our screen for what Graham called the "defensive" stock buyer - someone looking for "safety and freedom from bother," as he put it in his 1949 classic, The Intelligent Investor.

Among other things, we insisted that each stock's price not exceed 15 times its average per-share profits over the past three years, and accepted only candidates that have also delivered uninterrupted dividends for at least 10 years.

Last year's deep-value picks rose 30%.

Company
(Ticker symbol)
Current
price
52-wk
high
52-wk
low
Market
Cap (mill)
Div
Yield
P/E Current
ratio
Aetna (AET) $52.01 $53.43 $30.94 $26,644.72 0.1% 17.7 2.5
Applied Industrial Tech (AIT) $27.69 $30.00 $20.75 $1,192.61 1.7% 15.6 2.6
Carpenter Technology (CRS) $128.83 $137.99 $90.11 $3,370.58 0.9% 13.4 4.0
Loews (LTR) $51.17 $52.49 $32.84 $27,479.67 0.5% 13 14.4
Lufkin Industries (LUFK) $62.16 $66.88 $49.05 $935.26 1.4% 13.2 4.0
Pfizer (PFE) $26.25 $28.60 $22.16 $184,229.40 4.4% 12.3 2.2
Tidewater (TDW) $65.65 $69.00 $40.06 $3,763.52 0.9% 12.0 4.8
VF Corp.  (VFC) $91.70 $95.10 $62.16 $10,212.54 2.4% 18.6 2.5
Current price, 52-week high/low and market cap as of Jun 12 13:20
P/E based on earnings for the last 12 months.
Earnings growth based on analyst projections for the next five years, according to Baseline.



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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.