Value investors may want to consider these stocks for the following reasons:
- They do not look too expensive, as their earnings are trading for less than 20 times their price.
- Their history of earnings and sales generation is consistent, as they have grown both the top and bottom lines over the past five years without posting any net losses.
- Wall Street analysts have recommended positive ratings for them.
Walt Disney
The first stock to consider is The Walt Disney Co. DIS.
Walt Disney recorded an average growth rate of 8.4% in its trailing 12-month revenue per share and a growth rate of 10.6% in its trailing 12-month earnings per share (EPS) in the past five years. The price-earnings ratio (15.18 as of Monday) declined by an average of 2.8% over the same period.
Shares of Walt Disney traded at a price of $95.01 per unit on Monday for a market capitalization of $171.53 billion.
Walt Disney currently pays a semi-annual dividend of 88 cents per common share, generating a 1.72% forward dividend yield as of Monday.
GuruFocus assigned a moderate rating of 5 out of 10 for the company’s financial strength and a very high rating of 9 out of 10 for its profitability.
Wall Street recommends buying shares of The Walt Disney Co and has established an average target price of $153.50 per share.
RadNet
The second stock to consider is RadNet Inc. RDNT.
The Los Angeles-based provider of diagnostics and research services to U.S. healthcare companies grew its trailing 12-month revenue per share by 3.4% and its trailing 12-month EPS without non-recurring items by 8.7% on average every year over the past five years. The price-earnings ratio (15.49 as of Monday ) declined sharply over the period observed.
Shares of RadNet traded at a price of $10.53 per unit at close on Monday for a market capitalization of $529.81 million.
GuruFocus assigned a low financial strength rating of 3 out of 10 but a very good profitability rating of 7 out of 10 to RadNet Inc.
Wall Street recommends a buy rating for this stock and has established an average target price of $25.5 per share.
Select Medical Holdings
The third stock to consider is Select Medical Holdings Corp. SEM.
The Mechanicsburg, Pennsylvania-based operator of critical illness recovery, rehabilitation and occupational medical care facilities recorded a growth rate of 11.6% in its trailing 12-month revenue per share and a growth rate of 4.3% in its EPS over the past five years. The price-earnings ratio (14.07 at close on Monday) decreased by nearly 7% over the period in question.
Shares of Select Medical Holdings traded at a price of $15.34 per unit on Monday for a market capitalization of $2.06 billion.
GuruFocus assigned a low financial strength rating of 3 out of 10 and a very good profitability rating of 7 out of 10 to Select Medical Holdings Corp.
Wall Street issued an overweight recommendation rating for this stock with an average target price of $31.50 per share.
Disclosure: I have no positions in any security mentioned.
Read more here:
- These 3 Stocks Trade at Enticing Valuations
- 3 Stocks Growing Their Earnings Fast
- A Trio of High-Quality Stocks for the Value Investor
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