If you are looking for bargain opportunities, then you may want to consider the three stocks listed below, as they match the following criteria:
- A price-earnings ratio of less than 20
- A smaller enterprise-value-to-Ebitda ratio compared to the historical mean of the S&P 500 over the past six and a half years (which stands at around 10.54 as of the writing of this article)
- A robust dividend growth surpassing the S&P 500, which saw its dividends per share grow at a compound annual growth rate (CAGR) of about 4.11% over the past three years through Dec. 31.
PulteGroup Inc
The first stock that makes the cut is PulteGroup Inc (PHM, Financial), an Atlanta, Georgia-based residential construction company.
The stock price closed at $47.63 per share on Tuesday for a market cap of $12.77 billion, a price-earnings ratio of 9.94 (versus the industry median of 12.28) and an enterprise-value-to-Ebitda ratio of 7.81 (versus the industry median of 10.76).
GuruFocus assigned a score of 7 out of 10 to the company's financial strength rating and of 8 out of 10 to its profitability rating.
PulteGroup currently pays dividends to its shareholders in the amount of 14 cents per common share every quarter and has increased them by 7.7% every year over the past three years. The last payment was made on Jan. 5 for a dividend yield of 1.05% as of Jan. 26.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $57.79 per share.
BrightSphere Investment Group Inc
The second stock that makes the cut is BrightSphere Investment Group Inc (BSIG, Financial), a Boston, Massachusetts-based asset management company serving its clients through separate specifically dedicated portfolios or equity mutual funds.
The stock price closed at $20.48 per share on Tuesday for a market cap of $1.64 billion, a price-earnings ratio of 11.13 (versus the industry median of 21.33) and an enterprise-value-to-Ebitda ratio of 7.47 (versus the industry median of 11.42).
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 6 out of 10 to its profitability rating.
Currently, BrightSphere Investment Group Inc pays a quarterly cash dividend of $0.01 per common share for a dividend yield of 0.63% as of Jan. 26. The company has increased its dividend per share by 7.7% per annum over the past three years.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $22.86 per share.
Kimball International Inc
The third stock to consider is Kimball International Inc (KBAL, Financial), a Jasper, Indiana-based designer, producer and marketer of furnishings, fixtures and appliances.
The stock price closed at $12.48 per share on Tuesday for a market cap of $459.07 million, a price-earnings ratio of 13.28 (versus the industry median of 22.49) and an enterprise-value-to-Ebitda ratio of 5.55 (versus the industry median of 12.78).
GuruFocus assigned a score of 9 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
Currently, Kimball International Inc pays dividends to its shareholders in the amount of 9 cents per common share every quarter, for a dividend yield of 2.88% as of Jan. 26. The company has increased the dividend per share by 14.5% every year over the past three years.
On Wall Street, the stock has one recommendation rating of buy and a target price of $14 per share.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Banks Trading at a Discount
- 3 Low Price-to-Median-Price-Sales Stocks to Consider
- A Trio of Stocks Trading Near the GuruFocus Value Line
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