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Alberto Abaterusso
Alberto Abaterusso
Articles (2378) 

A Trio of Stock Picks for Growth-Focused Investors

They have significantly improved their bottom lines, while their share prices are still trading reasonably

September 18, 2020 | About:

Growth-focused investors may be interested in the following stocks since their price-earnings ratios still trade below 20 and their trailing 12-month earnings per share have grown significantly over the past year.

Corcept Therapeutics Inc

The first company that makes the cut is Corcept Therapeutics Inc (NASDAQ:CORT), a Menlo Park, California-based biotechnology developer of treatments for U.S. patients affected by serious metabolic, oncologic and psychiatric disorders.

Year over year, the company's trailing 12-month net earnings have grown by 47% to 94 cents per share as of the second quarter of 2020, up from 64 cents per share in the same quarter of 2019.

The price-earnings ratio is 18.32 (versus the industry median of 48.64) as of Sept. 17.

Following a 25.3% increase over the past year, the stock was trading at $17.22 per share at close on Thursday for a market capitalization of $1.99 billion and a 52-week range of $9.70 to $23.48.

Corcept Therapeutics Inc does not pay dividends.

GuruFocus assigned a score of 8 out of 10 to the company's financial strength and a score of 5 out of 10 to its profitability.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $17.75 per share.

Lumber Liquidators Holdings Inc

The second company that qualifies is Lumber Liquidators Holdings Inc (NYSE:LL), Richmond, Virginia-based multi-channel home improvement specialty retailer selling hard-surface flooring and flooring enhancements, including accessories.

The company's trailing 12-month net earnings were $1.12 per share as of the second quarter of 2020, marking a positive switch from a net loss of $2.05 as of the same quarter of 2019.

The price-earnings ratio is 19.29 (versus the industry median of 21.73) as of Sept. 17.

As a result of a 143.6% increase over the past year, the stock traded at $21.61 per share at close on Thursday for a market capitalization of $623.51 million and a 52-week range of $3.77 to $29.60.

Lumber Liquidators Holdings Inc does not pay dividends.

GuruFocus rated the financial strength of the company with a score of 4 out of 10 and the profitability with a score of 6 out of 10.

Wall Street sell-side analysts issued a hold rating for this stock and have established an average target price of $22 per share.

Pro-Dex Inc

The third company that makes the cut is Pro-Dex Inc (NASDAQ:PDEX), an Irvine, California-based developer of medical instruments and supplies for global original equipment manufacturers.

The company's trailing 12-month net earnings have advanced 56.7% on a year over year basis to $1.52 per share as of the second quarter of 2020, up from 97 cents in the second quarter of 2019.

The price-earnings ratio is 19.22 (versus the industry median of 35.66) as of Sept. 17.

After a 92.33% share price uptick over the past year, the stock was trading at $29.60 per share at close on Thursday for a market capitalization of $113.61 million and a 52-week range of $11.40 to $32.98.

Pro-Dex Inc does not pay dividends.

GuruFocus assigned a score of 8 out of 10 for the company's financial strength and a score of 7 out of 10 for its profitability.

The stock has a buy recommendation rating with an average target price of $30 per share on Wall Street.

Disclosure: I have no positions 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 how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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