Investors who focus on growth may be interested in the following stocks, as their price-earnings ratios are less than or equal to 20 and their trailing 12 months earnings per share (EPS) have increased tremendously on a year-over-year basis.
LKQ Corp
The first company that makes the cut is LKQ Corp (LKQ, Financial), a Chicago-based auto parts distributor.
The company's trailing 12 months EPS increased by 35.8% to $1.82 as of the second quarter of 2020, up from $1.34 as of the same quarter of 2019.
The price-earnings ratio is 16.92 (versus the industry median of 17.78) as of Aug. 10.
Following a 22.84% increase over the past year, the stock price closed at $30.76 per share on Monday for a market capitalization of $9.36 billion and a 52-week range of $13.31 to $36.63.
LKQ Corp does not pay dividends.
GuruFocus assigned a positive score of 5 out of 10 to the company's financial strength rating and an extremely high score of 9 out of 10 to its profitability.
As of August, the stock has the following recommendation ratings on Wall Street: seven strong buys, six buys and one hold. The average target price of $36.25 per share reflects a 18% upside from Monday's closing price.
Virtu Financial Inc
The second company that qualifies is Virtu Financial Inc (VIRT, Financial), a New York-based financial services company that provides global financial markets with market making and liquidity services thanks to its own multi-asset and currency technology platform.
The company's trailing 12-month EPS more than tripled to $3.19 as of the second quarter of 2020, up from $1.02 as of the second quarter of 2019.
The price-earnings ratio is 16.47 (versus the industry median of 16.25) as of Aug. 10.
As a result of a 21% increase over the past year, the stock price hit $21.90 per share at close on Monday for a market capitalization of $4.26 billion and a 52-week range of $14.94 to $26.82.
Virtu Financial Inc has been paying dividends for nearly five years. The company will pay a quarterly cash dividend of 24 cents per common share on Sept. 15. Both the trailing 12-month and forward yields are 4.39% as of Aug. 10.
GuruFocus assigned a moderate score of 4 out of 10 to the company's financial strength and a good score of 7 out of 10 to its profitability.
As of August, Wall Street sell-side analysts recommend two buy ratings, four hold ratings and one underperform rating for the stock. The average target price has been set at $27.06 per share, which reflects a 23.6% upside from Monday's closing price.
Clean Energy Fuels Corp
The third company that meets the requirements is Clean Energy Fuels Corp (CLNE, Financial), a Newport Beach, California-based provider of compressed, liquefied and renewable natural gas to light, medium and heavy-duty vehicles in North America.
The company's trailing 12-month EPS is 16 cents as of the second quarter of 2020, up from a net loss of 10 cents a year ago.
The price-earnings ratio is 18.14 (versus the industry median of 9.73) as of Aug. 10.
Following a nearly 37% increase over the past year, the stock price closed at $2.90 per share on Monday for a market capitalization of $576.2 million and a 52-week range of $1.05 to $3.75.
Clean Energy Fuels Corp does not pay dividends.
GuruFocus assigned a positive score of 6 out of 10 for the company's financial strength and a low score of 2 out of 10 for its profitability.
The stock holds two buy ratings and two hold ratings on Wall Street, which determines an average target price of $5.50 per share.
Disclosure: I have no position in any securities mentioned in this article.
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