Investors who are seeking value opportunities may be interested in the following securities, as these stocks have a price-earnings ratio below 20 and are characterized by a consistent history of earnings and sales generation. Further, they have recorded no losses in any of the past five fiscal years but instead achieved average growth rates in both the top and bottom lines.
Wall Street sell-side analysts have also issued positive recommendation ratings of overweight to buy for these stocks.
Dover Corp
The first stock under consideration is Dover Corp (DOV, Financial).
The Downers Grove, Illinois-based specialty industrial machinery company posted an average growth of 1.6% in trailing 12-month revenue per share and 1.5% growth in trailing 12-month earnings per share (EPS) without non-recurring items (NRI) in the past five years.
The price-earnings ratio (17.44 as of Wednesday) increased by 4% over the past five years compared to the S&P 500 index's 5.5% price-earnings ratio growth over the same period.
Dover Corp was trading at $80.59 per share at close on Wednesday for a market capitalization of $11.63 billion.
Dover Corp currently pays a quarterly dividend of 49 cents per common share, which results in a 2.55% forward dividend yield as of Wednesday.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a very positive profitability rating of 8 out of 10.
As of March, Wall Street sell-side analysts recommend nine buys, seven holds and one overweight rating. The average target price is $113.38 per share.
John B Sanfilippo & Son
The second stock under consideration is John B Sanfilippo & Son Inc (JBSS, Financial).
The Elgin, Illinois-based distributor of tree nuts and peanuts in the U.S. has posted 0.7% average growth in its trailing 12-month revenue per share and 6.8% average growth in its trailing 12-month EPS without NRI over the past five years. The price-earnings ratio (16.58 as of Wednesday ) rose by only 0.3% over the observed period.
Shares of John B Sanfilippo & Son Inc were trading at a price of $74.95 per unit at close on Wednesday for a market capitalization of approximately $855.85 million.
The packaged foods company paid an annual dividend of 60 cents per common share in 2019, which generates a forward dividend yield of 0.81% as of Wednesday.
GuruFocus assigned a score of 7 out of 10 to the company's financial strength and profitability.
One Wall Street sell-side analyst recommends a buy rating for this stock and has set a target price of $94 per share.
Standard Motor Products
The third stock under consideration is Standard Motor Products Inc (SMP, Financial).
The New York-based auto parts company posted an average growth of 3.7% in its trailing 12-month revenue per share and of 4.6% in its EPS without NRI over the past five years. The price-earnings ratio (15.62 as of Wednesday) increased by only 0.6% over the period in question.
Standard Motor Products Inc was trading at a price of $39.51 per share at close on Wednesday for a market capitalization of $887.49 million.
The company currently pays a quarterly dividend of 25 cents per common share, generating a forward dividend yield of 2.53% as of Wednesday.
GuruFocus assigned the company a positive rating of 6 out of 10 for its financial strength and a very high rating of 8 out of 10 for its profitability.
As of March, Wall Street sell-side analysts recommend two buy ratings and one hold rating. They have released price targets averaging $61.50 per share.
Disclosure: I have no positions in any security mentioned.
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