Value investors should take some time to look at the following companies, as their stocks have the following characteristics:
- A price-earnings ratio that stands below 20.
- A consistent history of earnings and sales generation, having increased both over the past five years without enduring any net losses.
- Optimistic recommendation ratings from sell-side analysts in Wall Street.
BCE Inc
The first stock to have a look at is BCE Inc (BCE, Financial).
The Canadian telecommunication and media services company saw its trailing 12-month revenue grow 1.2% and its trailing 12-month net income grow 2.7% on average every year over the past five years. The price-earnings ratio (16.98 as of Monday) was flat over the years in question.
The stock was trading at $41.94 per share at close on Monday for a market capitalization of $37.77 billion and a dividend yield of 5.76%.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very good profitability rating of 7 out of 10.
As of July, the stock has six buy ratings, seven hold ratings and one underperform rating on Wall Street. Sell-side analysts have set an average target price of $47.54 per share.
United Breweries Co Inc
The second stock to consider is United Breweries Co Inc (CCU, Financial), a Chilean beverage company with activities in Chile, Argentina, Bolivia and Colombia.
The brewer saw its trailing 12-month revenue jump by 4.1% and its trailing 12-month net income jump by 9% on average every year over the past five years. The price-earnings ratio (18.93 as of Monday) increased over the observed period by 0.3%.
The stock was trading at $15.20 per share at close on Monday for a market capitalization of $2.81 billion and a dividend yield of 4.14%.
GuruFocus assigned a very good rating of 7 out of 10 to both the company’s financial strength and its profitability.
As of July, the stock has one buy rating, five hold ratings and two underperform ratings on Wall Street. Sell-side analysts have established an average target price of $15.13 per share.
Valvoline Inc
The third company investors should have a look at is Valvoline Inc (VVV, Financial), a Lexington, Kentucky-based producer and supplier of maintenance products to engine and automotive manufacturers.
The company saw its trailing 12-month revenue rise by 3.8% and its trailing 12-month net income rise by 1.5% on average every year over the past five years. The price-earnings ratio (17.7 as of Monday ) decreased by 0.3% over the observed period.
The stock was trading at $21.23 per share at close on Monday for a market capitalization of $3.93 billion and a dividend yield of 2.09%.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very good profitability rating of 7 out of 10.
As of July, the stock has five buy ratings (of which three are strong buys) and six hold ratings on Wall Street. Sell-side analysts have established an average target price of $22.25 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Long-Term Payers Announce Dividends
- 3 Fast Growing Earnings Stocks
- A Trio of Picks for the Value Investor
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