Growth-focused investors may want to consider the following stocks since their price-earnings ratios are less than 20 and their earnings per share have grown significantly over the past year.
Public Service Enterprise Group
The first company that qualifies is Public Service Enterprise Group Inc. (PEG, Financial), a New Jersey-based electricity and gas utilities provider for the Northeastern and Mid-Atlantic regions of the United States.
The company's trailing 12-month net earnings increased by nearly 20% to $3.42 per share as of the second quarte, up from $2.88 per share in the prior-year quarter.
The price-earnings ratio is 15.25 (versus the industry median of 16.73) as of Aug. 28.
As a result of a 13.74% decline over the past year, the stock traded at $52.16 per share at close on Friday for a market capitalization of $26.38 billion and a 52-week range of $34.75 to $63.88.
Public Service Enterprise Group pays a quarterly dividend of 49 cents per share, with the next payment scheduled for Sept. 30.
GuruFocus rated the financial strength of the company with a score of 4 out of 10 and the profitability with a score of 7 out of 10.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $60.81 per share.
Evergy
The second company that meets the criteria is Evergy Inc. (EVRG, Financial), a Kansas City, Missouri-based generator and distributor of electricity in Kansas and Missouri.
The company's trailing 12-month net earnings rose by more than 15% to $2.74 per share as of the second quarter of 2020, up from $2.35 per share as of the same quarter of 2019.
The price-earnings ratio is 19.2 (versus the industry median of 16.73) as of Aug. 28.
After an 18.5% decrease over the past year, the stock was trading at $52.98 per share at close on Friday for a market capitalization of $12.02 billion and a 52-week range of $42.01 to $76.57.
Evergy pays a quarterly dividend of 50.5 cents per share, with the next payment scheduled for Sept. 21.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength and a score of 7 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 $59.83 per share.
Summit Materials
The third company that makes the cut is Summit Materials Inc. (SUM, Financial), a Denver-based producer and seller of building materials and related products that are used for constructing public infrastructures as well as residential and non-residential buildings.
The company's trailing 12-month net earnings of 89 cents per share as of the second quarter was more than 5 times higher than the net earnings of 17 cents per share.
The price-earnings ratio is 17.4 (versus the industry median of 14.63) as of Aug. 28.
Following a 26.15% decrease over the past year, the stock traded at $15.49 per share at close on Friday for a market capitalization of $1.77 billion and a 52-week range of $7.51 to $25.22.
Summit Materials does not pay dividends.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and a score of 5 out of 10 for its profitability.
Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $21.78 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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