Value investors may be interested in the following three securities, as they meet these criteria:
- Their price-earnings ratios stand below 20.
- Their record of earnings and sales generation is consistent. On a per share basis, both earnings and revenue have improved over the past five years, while no losses were posted over this period.
- These stocks have received positive recommendation ratings from Wall Street sell-side analysts.
Berkshire Hathaway Inc
The first stock that makes the cut is Berkshire Hathaway Inc. Class A shares (BRK.A, Financial).
The Omaha, Nebraska-based international conglomerate holding company saw its trailing 12-month revenue per share grow by 8.6% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) grow by 6.9% over the past five years.
The price-earnings ratio (15.41 as of Monday) has decreased by 0.1% on average per annum over the period in question.
The stock traded at a price of $347,401 per share at close on Monday for a market cap of $536.94 billion and a 52-week range of $239,440 to $352,500. Currently, Berkshire Hathaway Inc does not pay dividends to its shareholders.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $357,550 per share.
Amgen Inc
The second stock that makes the cut is Amgen Inc (AMGN, Financial).
The Thousand Oaks, California-based drug major saw its trailing 12-month revenue per share grow by 7.9% and its EPS without NRI grow by 8.7% per year over the past five years.
The price-earnings ratio (18.13 as of Monday) has increased by a 0.4% per year over the observed years.
The stock traded at a price of $224.81 per share at close on Monday for a market cap of $129.26 billion, a 52-week range of $177.05 to $264.97 and a dividend yield of 2.87%.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and a score of 9 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $251.78 per share.
British American Tobacco PLC
The third stock that makes the cut is British American Tobacco PLC (BTI, Financial).
The London-based cigarette manufacturer saw its trailing 12-month revenue per share grow by 6.6% and its trailing 12-month EPS without NRI grow by 9.2% per annum over the past five years.
The price-earnings ratio (9.53 as of Monday) has decreased by 0.5% per annum over the observed period.
The stock traded at a price of $35.85 per share at close on Monday for a market capitalization of $82.25 billion.
GuruFocus assigned the company a rating of 4 out of 10 for its financial strength and a rating of 8 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock and have produced an average target price of $35.10 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
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- This Trio of Stocks Looks Cheap
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