The following tech companies could be of interest to growth-focused investors, since their stocks have price-earnings ratios below 20 while their trailing 12-month earnings per share have grown significantly over the past year.
CACI International Inc
The first company that qualifies is CACI International Inc (CACI, Financial).
Based in Arlington, Virginia, CACI International is a provider of business systems, cybersecurity and enterprise-wide information solutions as well as intelligence services to various private and public organizations in North America and internationally.
The trailing 12-month net earnings increased by 36% year over year to $13.62 per diluted share as of the most recent quarter, up from $10.02 per diluted share as of the prior-year quarter.
The price-earnings ratio is 17.75 (versus the industry median of 32.58) as of Jan. 12.
As a result of an 8.44% decline over the past year, the stock closed at $241.81 per share on Tuesday for a market capitalization of $6.10 billion and a 52-week range of $156.15 to $288.59.
Currently, CACI International Inc does not pay dividends.
The company's financial strength was rated 5 out of 10 while the profitability was rated 8 out of 10 by GuruFocus.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $284 per share.
Methode Electronics Inc
The second company that holds the criteria is Methode Electronics Inc (MEI, Financial).
Based in Chicago, Illinois, the company produces and markets electronic components worldwide.
The trailing 12-month net earnings increased 22.5% year over year to $3.43 per diluted share as of the most recent quarter, up from $2.80 per diluted share in the prior-year quarter.
The price-earnings ratio is 12.24 (versus the industry median of 25.73) as of Jan. 12.
Thanks to an 8.11% increase over the past year, the stock closed at $41.99 per share on Tuesday for a market capitalization of $1.58 billion and a 52-week range of $21.76 to $42.79.
Currently, Methode Electronics Inc pays a quarterly cash dividend of 11 cents per common share. The next payment is scheduled to be issued on Jan. 29.
GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $42 per share.
Genasys Inc
The third company that makes the cut is Genasys Inc (GNSS, Financial).
Based in San Diego, California, Genasys Inc is a developer of sound technologies, voice broadcast products and mass messaging solutions for emergency warning and workforce management worldwide.
The trailing 12-month net earnings were 34 cents per diluted share as of the most recent quarter, representing a significant increase from 9 cents per diluted share as of the same quarter in 2019.
The price-earnings ratio is 19.56 (versus the industry median of 25.73) as of Jan. 12.
Following a 96.75% increase over the past year, the stock closed at $6.65 per share on Tuesday for a market capitalization of $223.22 million and a 52-week range of $2.01 to $7.32.
Genasys Inc is currently not paying dividends to its shareholders. The last payment was made in June 2016.
GuruFocus assigned a score of 7 out of 10 for both the company's financial strength and its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $8 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 High-Yield Stocks for the Dividend Investor
- A Trio of Stock Picks for Growth-Oriented Investors
- These 3 Stocks Are Potential Bargains
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
