Top 5 Bargain Stocks in the S&P 500

NEW YORK ( Stockpickr) -- There are two kinds of value investors. Some focus on the income statement and search for stocks that trade at a low valuation in relation to earnings, while others seek out value on the balance sheet via companies that have a market value lower than the book value (or shareholder's equity).

On occasion, though, you'll come across companies that appeal to both crowds. In the S&P 500, there are 36 companies that trade for less than book value and also trade for less than 10 times projected 2013 profits.

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That should set the stage for a solid-multi-year backdrop. As these companies continue to pound out profits in coming quarters and years, the cash on their balance sheet is likely to swell higher. Or they may choose to pay off debt. Either way, book value is likely rise yet higher, creating a further valuation gap on a price-to-book basis.

Of all of the companies in the S&P 500, these five stand out, offering deep value on both counts.

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