Investors who are focused on seeking growth opportunities may be interested in the following stocks, as their price-earnings ratios stand below 20 and their trailing 12-month earnings per share have grown substantially over the past year.
Communications Systems Inc
The first company that investors may want to consider is Communications Systems Inc (JCS, Financial), a Minnetonka, Minnesota-based manufacturer and supplier of communication equipment and services to providers of broadband networks in North America and internationally.
The company's trailing 12-month net earnings have grown enormously on a year over year basis to 32 cents per share as of the second quarter of 2020, up from 8 cents per share in the same quarter of 2019.
The price-earnings ratio is 12.81 (versus the industry median of 23.33) as of Oct. 5.
As a result of a 6.4% decrease over the past year, the stock was trading at $4.10 per share at close on Monday for a market capitalization of $38.36 million and a 52-week range of $3.50 to $9.90.
On Aug. 13, Communications Systems Inc announced the suspension of the quarterly cash dividend of 2 cents per common share to boost financial resources to allocate to M&A opportunities and growth initiatives.
GuruFocus rated the financial strength of the company with a score of 7 out of 10 and the profitability with a score of 3 out of 10.
On Wall Street, the stock has one buy recommendation rating with a target price of $8 per share.
Oil-Dri Corp of America
The second company to consider is Oil-Dri Corp of America (ODC, Financial), a Chicago, Illinois-based manufacturer and marketer of specialty chemicals in the U.S. and internationally.
Year over year, the company's trailing 12-month net earnings increased by 44.7% to $2.20 per share as of the third quarter of fiscal 2020, which ended on April 29, up from 8 cents as of the same quarter of fiscal 2019.
The price-earnings ratio is 16.9 (versus the industry median of 19.51) as of Oct. 5.
Following a 19.3% increase over the past year, the stock traded at $37.19 per share at close on Monday for a market capitalization of $278.31 million and a 52-week range of $28.53 to $38.80.
Oil-Dri Corp of America is currently paying a quarterly cash dividend of 26 cents per common share, which generates a trailing 12-month dividend yield of 2.73% and a forward dividend yield of 2.81% as of Oct. 5. The last payment was made on Aug. 28.
GuruFocus assigned a score of 8 out of 10 to the company's financial strength and a score of 6 out of 10 to its profitability.
Perma-Fix Environmental Services Inc
The third company under consideration is Perma-Fix Environmental Services Inc (PESI, Financial), an Atlanta, Georgia-based waste management company operating in the U.S.
The company's trailing 12-month net earnings were 38 cents per share as of the second quarter of 2020, representing a positive shift from a net loss of 18 cents per share as of the same quarter of 2019.
The price-earnings ratio is 19.17 (versus the industry median of 18.45) as of Oct. 5.
After a 41% rise over the past year, the stock price closed at $6.71 per share on Monday for a market capitalization of $81.49 million and a 52-week range of $3.82 to $9.98.
Perma-Fix Environmental Services Inc does not pay dividends.
GuruFocus assigned a score of 6 out of 10 for the company's financial strength and a score of 3 out of 10 for its profitability.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
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