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Alberto Abaterusso
Alberto Abaterusso
Articles (2201) 

This Trio of Growth Stocks Could Hold Value

Their price-earnings ratios stand at fair values

July 06, 2020 | About:

Investors who are focusing on growth may want to have a look at the following companies, as their price-earnings ratios are below 20 and their earnings per share have grown substantially over the past year.

Marvell Technology Group Ltd

The first company that meets the above listed criteria is Marvell Technology Group Ltd (NASDAQ:MRVL), a Bermuda-based developer and seller of integrated circuits in the U.S. and internationally.

The companys trailing 12-month EPS grew to $2.24 as of the first quarter of 2020, up from a net loss of 62 cents in the same quarter of 2019.

The price-earnings ratio is 15.63 (versus the industry median of 24.91) as of July 2.

Following a 45% increase over the past year, the stock price was trading at $35.02 per share at close on Thursday for a market capitalization of $23.30 billion and a 52-week range of $16.45 to $36.92.

Marvell Technology Group Ltd is currently distributing quarterly dividends of 6 cents per share, with the next payment to be sent out to shareholders on July 29. The company has been distributing dividends for nearly eight years.

GuruFocus rated the financial strength of the company 5 out of 10 and the profitability 6 out of 10.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $35.48 per share.

STORE Capital Corp

The second company that qualifies is STORE Capital Corp (NYSE:STOR), a Scottsdale, Arizona-based real estate investment trust company.

The companys trailing 12-month EPS grew by 30% year-over-year to $1.30 as of the first quarter of 2020, up from $1 for the prior year quarter.

The price-earnings ratio is 18.19 (versus the industry median of 14.71) as of July 2.

As a result of a 31.5% decline over the past year, the stock price traded at $23.46 per share at close on Thursday for a market capitalization of $5.74 billion and a 52-week range of $13 to $40.96.

STORE Capital Corp has been paying dividends since January 2015. The company will pay a quarterly cash dividend of 35 cents per common share on July 15.

GuruFocus assigned a moderate score of 4 out of 10 to the companys financial strength and a positive score of 6 out of 10 to its profitability.

Wall Street sell-side analysts issued an overweight rating for this stock and have established an average target price of $26.46 per share.

Cheniere Energy Inc

The third company that makes the cut is Cheniere Energy Inc (LNG), a Houston, Texas-based liquefied natural gas midstream operator.

The companys trailing 12-month EPS grew by 102.6% over the past year to $3.14 as of the first quarter of 2020, up from $1.55 in the prior year quarter.

The price-earnings ratio is 15.84 (versus the industry median of 8.68) as of July 2.

Following a 29% decline over the past year, the stock price was trading at $48.80 per share at close on Thursday for a market capitalization of $12.30 billion and a 52-week range of $27.06 to $70.49.

Cheniere Energy Inc does not pay dividends.

GuruFocus assigned a low score of 3 out of 10 for the companys financial strength and a positive score of 5 out of 10 for its profitability.

Wall Street sell-side analysts issued a buy recommendation rating for this stock and have established an average target price of $64 per share.

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 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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