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Alberto Abaterusso
Alberto Abaterusso
Articles (2608) 

This Trio of Growth Stocks May Present Value Opportunities

They are trading at low price-earnings ratios

June 11, 2020 | About:

Investors who are focusing on growth may want to have a look at the following stocks, as their price-earnings ratios are less than 20 and they have increased their earnings per share over the past year.

Amdocs Ltd

The first stock to have a look at is Amdocs Ltd (NASDAQ:DOX), a Chesterfield, Missouri-based global provider of software and services to several companies operating in communications, media and financial services industries.

The company posted a 42% year-over-year increase in its trailing 12-month EPS to $3.65 as of the second quarter of fiscal 2020, which ended on March 30.

The price-earnings ratio is 17.81 (versus the industry median of 25.25) as of June 10.

Following a 6.6% increase over the past year, the stock traded at a price of $65.01 per share at close on Wednesday for a market capitalization of $8.68 billion. The 52-week range was $44.05 to $77.29.

Amdocs is currently paying a quarterly cash dividend of 32.8 cents per common share. The next payment is scheduled to send out on July 24.

GuruFocus assigned a high rating of 8 out of 10 for both the company’s financial strength and its profitability.

Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $74.43 per share.

RGC Resources Inc

The second stock to have a look at is RGC Resources Inc (NASDAQ:RGCO), a Roanoke, Virginia regulated provider of natural gas..

The company posted a 26.4% year-over-year increase in its trailing 12-month EPS to $1.39 as of the second quarter of fiscal 2020, which ended March 30.

The price-earnings ratio stands at 18.19 (versus the industry median of 16.43) as of June 10.

As a result of a nearly 5% decline over the past year, the stock traded at a price of $25.29 per share at close on Wednesday for a market capitalization of $205.82 million. The 52-week range was $23.15 to $31.98.

RGC Resources Inc is currently paying a quarterly cash dividend of 17.5 cents per common share with the next payment to release on Aug. 1.

GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a positive rating of 6 out of 10 for its profitability.

Wall Street sell-side analysts issued a buy rating for this stock and have set an average target price of $34 per share.

Value Line Inc

The third stock to have a look at is Value Line Inc (NASDAQ:VALU), a New York-based independent provider of investment research services.

The company reported a 48.1% year-over-year increase in its trailing 12-month EPS to $1.57 as of most recent quarter, which ended on Jan. 31.

The price-earnings ratio is 17.31 (versus the industry median of 14.97) as of June 10.

Following a 4.5% increase over the past year, the stock traded at a price of $27.17 per share at close on Wednesday for a market capitalization of $261.29 million. The 52-week range was $18.40 to $36.60.

The company is currently paying a quarterly cash dividend of 21 cents per common share. The last payment was made on May 11, up 5% from the previous distribution.

GuruFocus assigned a positive rating of 6 out of 10 for both the company’s financial strength and its profitability.

Wall Street sell-side analysts issued a hold rating for this stock.

Disclosure: I have no position in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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