Investors who are looking for value opportunities should take a look at the following securities, as they appear to trade cheaply.
They have a price-earnings ratio of less than 20, hold a consistent history of earnings and sales generation, have not posted losses in the last five year and have achieved average growth rates in both the top and bottom lines.
Also, Wall Street sell-side analysts have issued positive recommendation ratings of overweight, which means that their share prices are expected to outperform either the industries or the overall market.
Tyson Foods
The first stock to consider is Tyson Foods Inc. (TSN, Financial).
The Springdale, Arkansas-based global food company recorded an average growth of 2.6% in trailing 12-month revenue per share and 23.4% growth in trailing 12-month earnings per share without non-recurring items in the past five years. The price-earnings ratio (14.5 as of Friday) declined by 1% over the observed period.
Tyson Foods traded at $80.35 per share on Friday for a market capitalization of $29.33 billion.
The farm products company currently pays a quarterly dividend of 42 cents per common share, which produces a 2.09% forward dividend yield as of Friday.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very positive profitability rating of 7 out of 10.
Wall Street issued an overweight recommendation rating with an average target price of $96.33 per share.
Kroger
The second stock to consider is The Kroger Co. (KR, Financial).
The Cincinnati, Ohio-based grocery store chain has recorded 8.8% annual growth in its trailing 12-month revenue per share and 16.5% annual growth in its trailing 12-month earnings per share without non-recurring items over the past five years. The price-earnings ratio (14.27 as of Friday) increased by only 0.7% over the period in question.
Kroger traded at a price of $27.96 per share at close on Friday for a market capitalization of approximately $22.38 billion.
The company currently pays a quarterly dividend of 16 cents per share, producing a 2.29% forward dividend yield as of Friday.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a very high profitability rating of 8 out of 10.
Wall Street set an overweight recommendation rating with an average target price of $28.30 per share.
Hubbell
The third stock to consider is Hubbell Inc. (HUBB, Financial).
The Shelton, Connecticut-based manufacturer of electrical and electronic products in the U.S. and internationally recorded an average growth of 9% in its trailing 12-month revenue per share and of 6.5% in its earnings per share without NRI over the past five years. The price-earnings ratio (19.92 as of Friday) was practically flat over the same period.
Hubbell traded at $145.42 per share at close on Friday for a market capitalization of $7.91 billion.
The company currently pays a quarterly dividend of 91 cents per common share, which generates a 2.5% forward dividend yield as of Friday.
GuruFocus assigned the company a moderate rating of 5 out of 10 for its financial strength and a very high rating of 9 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating with an average target price of $159.17 per share.
Disclosure: I have no positions in any security mentioned.
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