Investors searching for value opportunities may want to consider the following securities, as they do not appear expensive. Their earnings are trading for less than 20 times their price, they have a consistent history of earnings and sales generation, they have not incurred net losses in the last five years and they have accomplished average growth rates in both the top and the bottom lines.
Furthermore, analysts on Wall Street have issued positive recommendation ratings ranging between overweight and buy for these stocks.
Target
The first stock under consideration is Target Corp. (TGT, Financial).
The Minneapolis, Minnesota-based operator of discount stores in the United States posted an average growth of 5% in trailing 12-month revenue per share and 6.4% growth in trailing 12-month earnings per share without non-recurring items in the past five years. The price-earnings ratio (18.15 as of Friday) decreased slightly over the observed period.
Target Corporation closed at $114.32 per share on Friday for a market capitalization of $57.93 billion.
The retailer currently pays a quarterly dividend of 66 cents per common share, which produces a 2.31% forward dividend yield as of Friday.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a positive profitability rating of 7 out of 10.
Wall Street recommends an overweight recommendation rating with an average target price of $137.27.
Best Buy
The second stock under consideration is Best Buy Co. Inc. (BBY, Financial).
The U.S. retailer of technology products and solutions has posted 6% annual growth in its trailing 12-month revenue per share and 15.4% annual growth in its trailing 12-month earnings per share without non-recurring items over the past five years. The price-earnings ratio (15.57 as of Friday) slightly decreased over the period in question.
Best Buy traded at a price of $90.24 per share at close on Friday for a market capitalization of roughly $23.1 billion.
Currently, Best Buy pays a quarterly dividend of 50 cents per share, generating a 2.21% forward dividend yield as of Friday.
GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.
Wall Street recommends an overweight recommendation rating with an average target price of $87.79.
Encore Wire
The third stock under consideration is Encore Wire Corp. (WIRE, Financial).
The McKinney, Texas-based manufacturer and seller of electrical building wires and cables posted an average growth of 1.2% in its trailing 12-month revenue per share and of 12% in its earnings per share without NRI over the past five years. The price-earnings ratio (16.12 as of Friday) fell 1.2% on average over the same period.
Encore Wire closed at $56.84 per share on Friday for a market capitalization of roughly $1.2 billion.
The company currently pays a quarterly dividend of two cents per common share, which produces a 0.14% forward dividend yield as of Friday.
GuruFocus assigned the company a rating of 10 out of 10 for its financial strength and a rating of 7 out of 10 for its profitability.
Wall Street issued a buy recommendation rating with an average target price of $66.
Disclosure: I have no positions in any security mentioned.
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