Investors seeking undervalued growth opportunities may want to consider the following stocks as their trailing 12-month earnings have grown substantially over the past year while the price-earnings ratio still stands below 20.
AbbVie
The first stock that meets the above-listed criteria is AbbVie Inc. (ABBV, Financial).
The Chicago-based manufacturer of pharmaceutical products saw its trailing 12-month earnings per share grow by 44.3% over the past year to $5.28 as of Dec. 30, 2019, up from $3.66 in the prior-year quarter. The price-earnings ratio stands at 15.8 as of April 17.
After a 5.7% decline so far this year, the stock closed at $83.45 per share on Friday for a market capitalization of $123.23 billion and a trailing 12-month dividend yield of 5.4%. The company currently pays a quarterly cash dividend of $1.18 per common share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a high rating of 9 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock, which indicates that it is projected to outperform the market within a year. It has an average target price of $92.92 per share.
Anthem
The second stock that meets the above-listed criteria is Anthem Inc. (ANTM, Financial).
The Indianapolis-based health care plans company saw its trailing 12-month earnings per share grow 30.2% over the past year to $18.47 as of the quarter ended Dec. 30, up from $14.19 as of the prior-year quarter. The price-earnings ratio is 14.52 as of April 17.
Following an 11.3% drop so far this year, the stock closed at $267.82 per share on Friday for a market capitalization of $67.53 billion and a trailing 12-month dividend yield of 1.25%. The company currently pays a quarterly cash dividend of 95 cents per common share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a very positive rating of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating for the stock with an average target price of $314.55 per share.
Scotts Miracle Gro
The third stock that meets the above-listed criteria is The Scotts Miracle Gro Co. (SMG, Financial).
The Marysville, Ohio-based manufacturer and marketer of consumer grass and other garden products saw its annual earnings per share grow enormously over the past 12 months to $8.18 in full-year 2019, up from $1.12 in full-year 2018. The price-earnings ratio stands at 14.76 as of April 17.
After a nearly 11% rise so far this year, the stock closed at a price of $117.82 per share on Friday for a market capitalization of $6.55 billion and a trailing 12-month dividend yield of 1.94%. The company currently pays a quarterly cash dividend of 58 cents per common share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a higher rating of 8 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price of $122.50 per share.
Disclosure: I have no position in any securities mentioned in this article.
Read more here:
- A Trio of Growth Technology Stocks to Consider
- A Trio of High Earnings Yield Stocks
- 3 Low Price-Book Stocks
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