In my opinion, investors may be interested in the following three stocks, as they could meet these value criteria:
- These stocks do not seem expensive, as their price-earnings ratios stand below 20.
- Their earnings and revenue, both on a per share basis, have improved over the past five years, while no losses were during the observed period.
- These stocks have positive recommendation ratings amid the community of sell-side analysts on Wall Street.
First American Financial Corp
The first stock to consider is First American Financial Corp (FAF, Financial), a Santa Ana, California-based specialty provider of insurance products and related services for owners and other title holders of residential and commercial properties in the U.S. and internationally.
The company saw its trailing 12-month revenue per share increase by 4.2% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 21.9% over the past five years.
The price-earnings ratio (9.36 as of Friday) went down by 0.4% per year on average over the period in question.
The stock traded at around $53 per share at close on Friday for a market cap of $5.92 billion and a dividend yield of 3.36%.
GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10 to the company.
Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $64.20 per share.
Home BancShares Inc
The second stock to consider is Home BancShares Inc (HOMB, Financial), a Conway, Arkansas-based holder of Centennial Bank, a regional bank that provides banking and various other financial services to individuals, businesses and local public organizations.
The company saw its trailing 12-month revenue per share increase by 6.4% and its trailing 12-month EPS without NRI increase by 14.8% every year over the past five years.
The price-earnings ratio (16.98 as of Friday) has increased only slightly over the period in question, by a 0.1% average annual growth rate.
The stock was trading at around $21.11 per share at close on Friday for a market cap of $3.49 billion and a dividend yield of 2.51%.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength rating and of 6 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $21.25 per share.
FirstCash Inc
The third stock to consider is FirstCash Inc (FCFS, Financial), a Fort Worth, Texas-based operator of a chain of retail pawn stores in the U.S. and Latin America.
The company saw its trailing 12-month revenue per share increase by 13.4% and its trailing 12-month EPS without NRI increase by 9.7% per year over the past five years.
The price-earnings ratio (19.64 as of Friday) has decreased over the observed years at an annual average rate of 0.4%.
The stock traded at around $59.50 per share at close on Friday for a market capitalization of $2.47 billion and a dividend yield of 1.82%.
GuruFocus assigned the company a score of 5 out of 10 for its financial strength rating and of 9 out of 10 for the profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $71.83 per share.
Disclosure: I have no positions in any securities mentioned.
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