Value investors may want to consider the three stocks that are listed in this article, in my opinion, as they meet the below criteria:
- These stocks do not seem expensive as their price-earnings ratios are at or below 20.
- They have a history of earnings and sales growth. Earnings per share and revenue per share have advanced over the past five years, while no losses were recorded in the years in question.
- These stocks have positive recommendation ratings from Wall Street sell-side analysts.
Stock Yards Bancorp Inc
The first stock to consider is Stock Yards Bancorp Inc SYBT, a Louisville, Kentucky-based company that is a holding company for Stock Yards Bank & Trust Company, a regional bank operating branches in Louisville, Indianapolis and Cincinnati.
The company saw its trailing 12-month revenue per share increase by 6.6% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 12.5% over the past five years.
The price-earnings ratio (15.28 as of Monday) went up over the period in question, but only slightly.
The stock traded at around $38.81 per share at close on Monday for a market cap of $880.68 million and a dividend yield of 2.78%.
GuruFocus assigned a financial strength rating of 3 out of 10 and a profitability rating of 5 out of 10 to the company.
Wall Street sell-side analysts recommend a hold rating for this stock and have established an average target price of $41.33 per share.
Electromed Inc
The second stock to consider is Electromed Inc ELMD, a New Prague, Minnesota-based developer and manufacturer of medical devices for airway clearance therapies to treat patients with high frequency chest wall oscillations.
The company saw its trailing 12-month revenue per share increase by 9.1% and its trailing 12-month EPS without NRI increase by 17.8% every year over the past five years.
The price-earnings ratio (17.06 as of Monday) has declined by 1.8% over the period in question.
The stock was trading at around $8.19 per share at close on Monday for a market cap of $70.44 million.
Electromed Inc does not pay dividends.
GuruFocus assigned a score of 10 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
On Wall Street, the stock has one recommendation rating of buy with a price target of $19 per share.
Electronic Arts
The third stock to consider is Electronic Arts Inc. EA, a Redwood City, California-based electronic gaming and multimedia company.
The company saw its trailing 12-month revenue per share increase by 6.4% and its trailing 12-month EPS without NRI increase by nearly 21% per year over the past five years.
The price-earnings ratio (17.75 as of Monday) has declined by 1.3% over the observed period.
The stock traded at around $119.81 per share at close on Monday for a market capitalization of $34.60 billion.
Electronic Arts Inc does not pay dividends.
GuruFocus assigned the company a rating of 8 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 $155.67 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Long-Term Payers Announce Dividends
- 3 Stock Picks for the Value Investor
- 3 Stocks Growing Their Earnings Per Share Fast
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