A Trio of Stocks With a Consistent History of Sales and Earnings

Wall Street recommends optimistic ratings for these companies

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Alberto Abaterusso
Sep 23, 2020
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Value investors may want to consider these three stocks for the following reasons:

  1. These stocks do not appear expensive as their price-earnings ratios are no more than 20.
  2. Their history of earnings and sales generation is consistent. Earnings per share and revenue per share have advanced over the past five years, while no losses were recorded over the same period.
  3. These stocks have received positive recommendation ratings from Wall Street sell-side analysts.

Power Integrations Inc

The first stock that qualifies is Power Integrations Inc (

POWI, Financial).

The San Jose, California-based global semiconductors company saw its trailing 12-month revenue per share increase by 5% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 22.7% over the past five years.

The price-earnings ratio (15.44 as of Tuesday) has slightly decreased over the period in question.

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The stock was trading at a price of $52.66 per share at close on Tuesday for a market cap of $3.15 billion and a dividend yield of 0.77%.

GuruFocus assigned the company the highest financial strength rating of 10 out of 10 and a high profitability rating of 8 out of 10.

Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $56.90 per share.

MGP Ingredients Inc

The second stock that meets the criteria is MGP Ingredients Inc (

MGPI, Financial).

The Atchison, Kansas-based producer and supplier of distilled spirits, specialty wheat proteins and starch food ingredients saw its trailing 12-month revenue per share increase by 4% and its EPS without NRI increase by 12.6% every year over the past five years.

The price-earnings ratio (16.92 as of Tuesday) slightly declined by 0.6% over the period in question.

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The stock was trading at a price of $39.08 per share at close on Tuesday for a market cap of $660.97 million and a dividend yield of 1.18%.

GuruFocus assigned a very good score of 7 out of 10 to both the company's financial strength and profitability ratings.

Wall Street sell-side analysts recommend a buy rating for the stock with an average price target of $44.60 per share.

Federal Signal Corp

The third stock that makes the cut is Federal Signal Corp (

FSS, Financial).

The Oak Brook, Illinois-based manufacturer and supplier of safety and security products and environmental solutions saw its trailing 12-month revenue per share increase by 11.5% and its trailing 12-month EPS without NRI increase by 14.5% per annum over the past five years.

The price-earnings ratio (17.69 as of Tuesday) fell by 1.6% over the observed period.

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The stock was trading at a price of $29.55 per share at close on Tuesday for a market capitalization of $1.79 billion.

GuruFocus assigned the company a very good rating of 7 out of 10 for both its financial strength and profitability.

Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price of $35.25 per share.

Disclosure: I have no positions in any securities mentioned.

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