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Alberto Abaterusso
Alberto Abaterusso
Articles (2275) 

A Trio of Potential Opportunities for the Value Investor

High sales and earnings at fair prices

May 21, 2020 | About:

Value investors may want to take a look at the following stocks, as they represent companies that meet the following characteristics:

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

PPG Industries Inc

The first stock to have a look at is PPG Industries Inc (NYSE:PPG).

The Pittsburgh, Pennsylvania-based global distributor of specialty chemicals saw its trailing 12-month revenue per share increase by 4.5% and its earnings per share (EPS) without non-recurring items (NRI) grow by 8.3% on average every year over the past five years. The price-earnings ratio (19.51 as of Wednesday) has gained 2.5% over the period in question but is still below 20.

The stock price was trading at $95.99 per share at close on Wednesday for a market capitalization of $22.65 billion and a dividend yield of 2.13%.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.

As of May, the stock has four strong buy ratings, nine buy ratings and ten hold ratings on Wall Street. Sell-side analysts have issued an average target price of $105.50 per share.

Collectors Universe Inc

The second stock to have a look at is Collectors Universe Inc (NASDAQ:CLCT).

The Santa Ana, California-based provider of authentication services for coins and various collectibles saw its trailing 12-month revenue per share rise by 2.4% and its trailing 12-month EPS without NRI grow by 1.5% on average every year over the past five years. The price-earnings ratio (17.24 as of Wednesday) increased by 1.3% over the observed years but still stands below 20.

The stock price was trading at $20.86 per share at close on Wednesday for a market capitalization of $193.38 million and a dividend yield of 3.35%.

GuruFocus assigned a positive score of 6 out of 10 to the company's financial strength and a high score of 8 out of 10 to its profitability.

As of May, the stock has one hold rating on Wall Street.

EnerSys

The third stock to have a look at is EnerSys (NYSE:ENS).

The Reading, Pennsylvania-based manufacturer and distributor of industrial batteries and related equipment saw its trailing 12-month revenue per share grow by 5.4% per year and the EPS without NRI increase slightly by 0.9% per year over the past five years. The price-earnings ratio (16.76 as of Wednesday) rose by 2.5% over the observed years but is still less than 20.

The stock price was trading at $61.33 per share at close on Wednesday for a market capitalization of $2.59 billion and a dividend yield of 1.15%.

GuruFocus assigned the company a moderate rating of 5 out of 10 for its financial strength and a high rating of 9 out of 10 for its profitability.

As of May, the stock has two strong buys and two hold ratings from Wall Street. The average target price is $74.33 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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