Investors looking for value opportunities may be interested in the following securities, which may not seem to be expensive as their earnings are trading for less than 20 times their price. Second, they have a consistent history of earnings and sales generation. The second characteristic means that these companies have posted no losses in the last five years and accomplished average growth rates in both the top and bottom lines.
Further, analysts on Wall Street have issued positive recommendation ratings ranging between hold and overweight, which increase expectations for stocks that beat the U.S. market.
Lockheed Martin
The first stock under consideration is Lockheed Martin Corp. (LMT, Financial).
The Bethesda, Maryland-based global aerospace, defense, security and advanced technologies company posted average growth of 7.9% in trailing 12-month revenue per share and 6.5% growth in trailing 12-month earnings per share without non-recurring items in the past five years. The price-earnings ratio (19.67 as of Friday) was flat on average over the observed period.
Lockheed Martin closed at $413.83 per share on Friday for a market capitalization of $116.73 billion.
The company currently pays a quarterly dividend of $2.4 per common share, generating a 2.32% forward dividend yield as of Friday.
GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10.
Wall Street recommends an overweight recommendation rating with an average target price of $415.78.
Host Hotels & Resorts
The second stock under consideration is Host Hotels & Resorts Inc. (HST, Financial).
The Bethesda, Maryland-based lodging real estate investment trust and owner of deluxe hotels has grown its trailing 12-month revenue per share by 1.8% and its trailing 12-month earnings per share without non-recurring items by 26% over the past five years. The price-earnings ratio (11.23 as of Friday) was flat on average over the same period.
Host Hotels & Resorts traded at a price of $17.52 per share at close on Friday for a market capitalization of $12.56 billion.
The company currently pays a quarterly dividend of 20 cents per share, which produces a 4.57% forward dividend yield as of Jan. 10.
GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10 to Host Hotels & Resorts.
Wall Street recommends a hold recommendation rating with an average target price of $18.55.
PC Connection
The third stock under consideration is PC Connection Inc. (CNXN, Financial).
The Merrimack, New Hampshire-based provider of information technology solutions saw average growth of 4% in its trailing 12-month revenue per share and an almost 11% increase in its trailing 12-month earnings per share without non-recurring items over the past five years. The price-earnings ratio (17.42 as of Friday) showed no change on average relative to the period in question.
PC Connection closed at $53.48 per share on Friday for a market capitalization of $1.41 billion.
The company currently pays an annual dividend of 32 cents per common share, which yields a 0.60% forward dividend as of Friday.
GuruFocus assigned a rating of 7 out of 10 for both the financial strength and the profitability of the company.
Wall Street issued an overweight recommendation rating with an average target price of $55.50.
Disclosure: I have no positions in any security mentioned.
Read more here:
- 3 Small Caps to Consider for Growth
- 3 High-Earnings Return Stocks Set to Outperform
- This Trio of Low Price-Book Stocks Is Set to Beat the Market
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