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Alberto Abaterusso
Alberto Abaterusso
Articles (2141) 

3 Stocks for the Value Investor

These companies have a consistent record of sales and earnings at compelling valuations

June 28, 2020 | About:

Value investors may be interested in the following companies whose stocks have the following characteristics:

  • A price-earnings ratio that is less than 20.
  • A consistent history of earnings and sales generation, having increased both over the past five years with no net losses.
  • Optimistic recommendation ratings from Wall Street sell-side analysts.

Saul Centers

The first stock that meets the criteria is Saul Centers Inc. (NYSE:BFS).

The Bethesda, Maryland-based real estate investment trust saw its trailing 12-month revenue per share increase by 0.4% and its earnings per share without non-recurring items grow 1.5%, both on average every year over the past five years. The price-earnings ratio (19.27 as of Friday) declined 1.7% over the observed period.

The stock traded at $30.06 per share at close on Friday for a market capitalization of $697.39 million and a dividend yield of 7.05%.

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 June, the stock has one buy rating and two hold ratings on Wall Street. Sell-side analysts have set an average target price of $35.33 per share.

Vectrus

The second stock that makes the cut is Vectrus Inc. (NYSE:VEC), a Colorado Springs, Colorado-based company that provides global infrustructure like facilities, logistics and other services such as security and supply chain.

The company saw its trailing 12-month revenue per share increase by 0.8% and its trailing 12-month EPS without NRI grow 8.4%, both on average every year over the past five years. The price-earnings ratio (14.91 as of Friday ) fell by 1.8% over the observed period.

The stock traded at $46.36 per share at close on Friday for a market capitalization of $537.30 million and a 52-week range of $28.9 to $59.24.

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

As of June, Wall Street sell-side analysts recommended two buy ratings with an average target price of $63.50 per share.

Employers Holdings

The third stock that qualifies is Employers Holdings Inc. (NYSE:EIG), a Reno, Nevada-based commercial property and casualty insurer.

The company saw its trailing 12-month revenue per share increase by 1.3% and its trailing 12-month EPS without NRI increase by 9.7%, both on average every year over the past five years. The price-earnings ratio (13.93 as of Friday ) rose only slightly by 0.2% over the years in question.

The stock traded at $29.4 per share at close on Friday for a market capitalization of $892.98 million and a dividend yield of 3.2%.

GuruFocus assigned the company a positive rating of 5 out of 10 for both its financial strength and profitability.

As of June, the stock has a median recommendation rating of hold and an average target price of $40.50 per share.

Disclosure: I have no positions in any securities 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

Rating: 4.0/5 (2 votes)

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Comments

Praveen Chawla
Praveen Chawla premium member - 1 week ago

Good ideas.

Alberto Abaterusso
Alberto Abaterusso - 6 days ago    Report SPAM

Thank you, Sir.

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