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. (BFS, Financial).
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. (VEC, Financial), 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. (EIG, Financial), 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.
Read more here:
- This Trio Is Trading at Enticing Valuations​
- 3 Long-Term Payers Announce Dividends​
- 3 Stocks That Have Grown Earnings Fast
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