2-High Performing Stocks for the Value Investor

Peter Lynch indicates these dividend payers are not expensive

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The following securities have had positive performance over the past week, month, year and three years.

These companies have price-earnings ratios of less than 15, price-tangible book ratios of less than 1 and price-sales ratios of less than to 1.5. This usually qualifies a stock as a value stock.

Prudential Financial Inc. (PRU, Financial) has grown 2.2% over the last week, 2.3% over the past month, 26.6% so far this year, 4.4% over the last 52 weeks and 36.3% over the past three years through July 26.

The Newark, New Jersey-based life insurer was trading around $103.27 per share at close on Friday for a market capitalization of $42.07 billion. The stock has a price-earnings ratio of 12.04 versus the industry median of 12.75, a price-tangible book ratio of 0.81 versus an industry median of 1.25 and a price-sales ratio of 0.68 versus the industry median of 0.96

Prudential Financial has continuously paid annual dividends from Dec. 18, 2002, to Dec. 14, 2012, and quarterly dividends from March 21, 2013, to June 20, 2019.

Currently, the insurer pays $1 cash quarterly dividend per common share, which, based on Friday’s closing price, generates a forward dividend yield of 3.87% compared to the industry median of 2.37% and versus the S&P 500 index’ yield of 1.85%.

According to the Peter Lynch chart, the stock seems to be cheap.

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Wall Street issued an overweight recommendation rating for shares of Prudential Financial with an average target price of $113.59, reflecting 10% upside from the closing price on Friday. The overweight recommendation rating means that the stock is foreseen to outperform the market within 12 months.

Additionally, GuruFocus assigned a rating of 4 out of 10 for financial strength, and profitability and growth.

Servotronics Inc (SVT, Financial) has gained 2.5% over the last week, 6.3% over the past month, 2.5% year to date, 5% over the last 52 weeks and 12% over the past three years through July 26.

The stock was trading around $10.2 per share at close on Friday for a market capitalization of $26.33 million. The stock has a price-earnings ratio of 7.45 versus an industry median of 16.58, a price-tangible book ratio of 0.75 versus an industry median of 1.59 and a price-sales ratio of 0.49 compared to an industry median of 0.98.

The New York-based electronic components producer has paid annual dividends on June 3, 1988, and continuously from March 14, 2008, to March 31, 2010. It has non-continuously distributed semi-annual dividends from May 20, 2011, to May 16, 2016. Servotronics has regularly paid annual dividends from July 14, 2017, to July 15, 2019.

Currently, the annual dividend is 16 cents per common share generating a forward dividend yield of 1.57% versus the industry median of 2.67% and versus the S&P 500 index’s yield of 1.85%. Yields are based on Friday’s closing prices.

The Peter Lynch chart suggests the stock is trading cheaply.

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Further, GuruFocus assigned a financial strength rating of 8 out of 10 and a profitability and growth rating of 7 out of 10.

The stock has not received any recommendation rating from sell-side analysts on Wall Street.

Disclosure: I have no positions in any securities mentioned.