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Alberto Abaterusso
Alberto Abaterusso
Articles (2145) 

3 Picks for the Value Investor

High sales and earnings at reasonable prices

May 08, 2020 | About:

Value investors may be interested in the three stocks in this article for the following reasons:

  1. They are trading for a price-earnings ratio of less than 20.
  2. They have a consistent history of earnings and sales generation, having grown the top and bottom lines over the past five years with no net losses.
  3. They have received positive recommendation ratings from Wall Street sell-side analysts.

Exelon Corp

The first stock to have a look at is Exelon Corp (NASDAQ:EXC).

The Chicago-based diversified utilities operator saw its trailing 12-month revenue per share grow by 2.7% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) jump by 8.7% on average every year over the past five years. The price-earnings ratio (11.64 as of Thursday) has declined by 0.5% over the period in question.

The stock traded at a price of $35.04 per share at close on Thursday for a market cap of $34.13 billion and a dividend yield of 4.22%.

GuruFocus assigned the company a low financial strength rating of 3 out of 10 but a very good profitability rating of 7 out of 10.

As of May, the stock has six strong buy ratings, eight buy ratings, two hold ratings and one underperform rating in Wall Street. Sell-side analysts have issued an average target price of $48.87 per share.

Magellan Midstream Partners LP

The second stock to have a look at is Magellan Midstream Partners LP (NYSE:MMP).

The Tulsa, Oklahoma-based oil and gas midstream operator saw its trailing 12-month revenue per share grow by 4.6% and its trailing 12-month EPS without NRI grow by nearly 7.4% on average every year over the past five years. The price-earnings ratio (8.56 as of Thursday) fell by 0.6% over the observed years.

The stock traded at a price of $41.18 per share at close on Thursday for a market cap of $9.27 billion and a dividend yield of 9.9%.

GuruFocus assigned a low score of 3 out of 10 to the company's financial strength but a high score of 9 out of 10 to its profitability.

As of May, the stock has three strong buys, four buys, seven holds and two underperform ratings from Wall Street. The average target price is $50.74 per share.

The Interpublic Group of Companies Inc

The third stock to have a look at is The Interpublic Group of Companies Inc (NYSE:IPG).

The New York-based provider of advertising and marketing services worldwide saw its trailing 12-month revenue per share increase by 8.6% per year, while the EPS without NRI increased by 9.3% every year over the past five years. The price-earnings ratio (9.57 as of Thursday) increased by 0.2% over the observed years.

The stock traded at a price of $16.27 per share at close on Thursday for a market cap of $6.34 billion and a dividend yield of 5.91%.

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

As of May, the stock has five strong buys, five buys, five holds and one underperform rating from Wall Street. The average target price is $18.70 per share.

Disclosure: I have no positions in any security mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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