Investors seeking value opportunities may want to consider the following securities, which do not seem to be expensive as their earnings are trading for less than 20 times their price. They also have consistent history of earnings and sales generation, having grown both the top and bottom lines over the past five years without posting any net losses over the same period.
Furthermore, Wall Street analysts have recommended positive ratings for all three of them.
Quest Diagnostics
The first stock under consideration is Quest Diagnostics Inc (DGX, Financial).
The Secaucus, New Jersey-based global provider of solutions for diagnostics and research companies posted an average growth rate of 2% in its trailing 12-month revenue per share and a growth rate of 8.5% in its trailing 12-month earnings per share in the past five years. The price-earnings ratio (18.39 as of Thursday) increased by only 1.2% on average over the observed period.
Shares of Quest Diagnostics closed at a price of $115.48 per unit on Thursday for a market capitalization of $15.41 billion.
The company currently pays a quarterly dividend of 56 cents per common share, generating a 1.94% forward dividend yield as of Thursday.
GuruFocus assigned a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10 to Quest Diagnostics.
Wall Street recommends a hold recommendation rating for this stock with an average target price of $111.73.
Forward Air Corp
The second stock under consideration is Forward Air Corp (FWRD, Financial).
The Tennessee-based asset-light freight and logistics operator has grown its trailing 12-month revenue per share by 14.4% and its trailing 12-month earnings per share without non-recurring items by 15.5% on average every year over the past five years. The price-earnings ratio (19.47 as of Thursday) declined slightly over the same period.
Shares of Forward Air Corp traded at a price of $59.38 per unit at close on Thursday for a market capitalization of $1.67 billion.
The company currently pays a quarterly dividend of 18 cents per share, which yields a 1.21% forward dividend yield as of March 4.
GuruFocus assigned a very positive financial strength rating of 7 out of 10 and a very high profitability rating of 9 out of 10 to Forward Air Corp.
Wall Street recommends a hold recommendation rating for this stock with an average target price of $73.
La-Z-Boy
The third stock under consideration is La-Z-Boy Inc (LZB, Financial).
The Monroe, Michigan-based producer and seller of upholstery and casegoods furnitures posted a growth rate of 7.4% in its revenue per share and a growth rate of 6.8% in its earnings per share over the past five years. The price-earnings ratio (17.82 as of Thursday) increased slightly over the period in question.
Shares of La-Z-Boy Inc closed at a price of $29.68 per unit on Thursday for a market capitalization of $1.34 billion.
The company currently pays a quarterly dividend of 14 cents per common share, which produces a 1.89% forward dividend as of Thursday.
GuruFocus assigned a positive rating of 7 out of 10 for the company’s financial strength and a high rating of 8 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for this stock with an average target share price is $37.33.
Disclosure: I have no positions in any security mentioned.
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