3 Potential Opportunities for the Value Investor

National Retail Properties Inc tops the list

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Value investors may want to consider these three stocks for the following reasons:

  1. These stocks seem cheap, as their earnings are trading for a price-earning ratio of 20 or less.
  2. They boast a consistent history of earnings and sales generation. The top and bottom lines have grown over the past five years and no net losses were reported.
  3. They have received positive recommendation ratings from sell-side analysts on Wall Street.

National Retail Properties Inc

The first stock to have a look at is National Retail Properties Inc (NNN, Financial).

The Orlando, Florida-based real estate investment trust saw its trailing 12-month revenue per share grow by 3.3% and its trailing 12-month earnings per share without non-recurring items increase by 8.1% on average every year over the past five years. The price-earnings ratio (18.88 as of Friday) has declined by 0.3% over the observed years.

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The stock traded at a price of $29.45 per share at close on Friday for a market cap of $5.06 billion and a dividend yield of nearly 7%.

GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.

As of April, the stock has six strong buy ratings, 2 buy ratings and seven hold ratings on Wall Street. Sell-side analysts have issued an average target price of $44.75 per share.

Alamo Group Inc

The second stock to have a look at is Alamo Group Inc (ALG, Financial).

The Seguin, Texas-based manufacturer and provider of farm and heavy construction machineries saw its trailing 12-month revenue per share grow by 5.7% and its trailing 12-month EPS without NRI grow by nearly 12% on average every year over the past five years. The price-earnings ratio (17.07 as of Friday ) increased slightly by only 0.7% over the period in question.

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The stock traded at a price of $90.99 per share at close on Friday for a market cap of $1.08 billion and a dividend yield of 0.55%.

GuruFocus assigned a moderate score of 5 out of 10 to the company's financial strength but a high score of 8 out of 10 to its profitability.

As of April, Wall Street analysts recommended an average target price is $127.25 per share.

John Wiley & Sons Inc Class A

The third stock to have a look at is John Wiley & Sons Inc Class A (JW.A, Financial).

The Hoboken, New Jersey-based global provider of research and learning services saw its trailing 12-month revenue per share increase at a 0.8% rate over the past five years, while EPS without NRI grew by 1.4% per year. The price-earnings ratio (13.42 as of Friday) declined by 0.2% over the observed years.

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The stock traded at a price of $34.62 per share at close on Friday for a market cap of $1.94 billion and a dividend yield of 3.93%.

GuruFocus assigned the company a moderate rating of 5 out of 10 for its financial strength and a very good rating of 7 out of 10 for its profitability.

As of April, the stock has two buy ratings and one hold rating on Wall Street. The average target price is $43.50 per share.

Disclosure: I have no positions in any security mentioned.

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