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Alberto Abaterusso
Alberto Abaterusso
Articles (2277) 

A Trio of Picks for the Value Investor

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

July 10, 2020 | About:

Value investors may want to consider the following trio of stock picks, as they represent companies that possess the following characteristics:

  1. A price-earnings ratio that stands below 20.
  2. A consistent history of earnings and sales generation, having grown both over the past five years with no net losses.
  3. Optimistic recommendation ratings from Wall Street sell-side analysts.

3M Co

The first stock that meets the criteria is 3M Co (NYSE:MMM).

The Saint Paul, Minnesota-based international conglomerate saw its trailing 12-month revenue per share grow by 3.3% per annum and its earnings per share without non-recurring items grow by 1.9% per annum over the past five years. The price-earnings ratio (17.78 as of Thursday ) declined 0.9% over the period in question.

The stock was trading at a price of $151.45 per share at close on Thursday for a market capitalization of $87.11 billion and a 52-week range of $114.04 to $219.75.

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

Wall Street sell-side analysts have recommended a hold rating and set an average target price of $161.88 per share.

Westamerica Bancorp

The second stock that qualifies is Westamerica Bancorp (NASDAQ:WABC), a San Rafael, California-based regional bank.

The company saw its trailing 12-month revenue per share grow by 1.1% per annum and its trailing 12-month EPS without NRI grow 4.4% per annum over the past five years. The price-earnings ratio (18.47 as of Thursday) declined by 1.4% over the observed period.

The stock was trading at a price of $53.18 per share at close on Thursday for a market capitalization of $1.43 billion and a 52-week range of $46.94 to $69.08.

GuruFocus assigned a moderate rating of 4 out of 10 to both the company’s financial strength and its profitability.

Wall Street sell-side analysts have recommended an overweight rating for the stock and established an average target price of $62.33 per share.

United-Guardian Inc

The third stock that makes the cut is United-Guardian Inc (NASDAQ:UG), a Hauppauge, New York-based manufacturer and marketer of household and personal products in the U.S. and internationally.

The company saw its trailing 12-month revenue per share grow by 0.3% per annum and its trailing 12-month EPS without NRI grow by 3.2% per annum over the past five years. The price-earnings ratio (15.32 as of Thursday) fell by 1.6% over the observed years.

The stock was trading at a price of $14.55 per share at close on Thursday for a market capitalization of $66.17 million and a 52-week range of $10.65 to $20.89.

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

Wall Street sell-side analysts have recommended a buy rating for this stock.

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

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