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Alberto Abaterusso
Alberto Abaterusso
Articles (2275) 

This Trio of Growth Stocks Could Hold Value

They are growing earnings and trade at appealing valuations

August 11, 2020 | About:

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 (NASDAQ:LKQ), 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 (NASDAQ:VIRT), 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 (NASDAQ:CLNE), 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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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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