1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1923) 

These Stocks Look Undervalued

Lockheed Martin tops the list

January 12, 2020 | About:

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. (NYSE:LMT).

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. (NYSE:HST).

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. (NASDAQ:CNXN).

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:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here. 

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
/* */