Growth-focused investors could be interested in the following stocks, as they have price-earnings ratios standing below 20 while their trailing 12-month earnings per share have increased over the past year.
Standard Motor Products Inc
The first company that makes the cut is Standard Motor Products Inc SMP, a Long Island, New York-based manufacturer and supplier of spare parts for motor vehicles.
The trailing 12-month net earnings from ongoing operations increased by 3% year over year to $3.09 per diluted share as of the September 2020 quarter, up from $3 per diluted share as of the prior-year quarter.
The price-earnings ratio is 16.51 (versus the industry median of 25.13) as of Feb. 5.
As a result of a nearly 16% decline over the past year, the stock was trading at $43.25 per share at close on Friday for a market capitalization of $970.79 and a 52-week range of $33.94 to $55.29.
Currently, Standard Motor Products Inc pays a 25 cents per common share quarterly dividend with the next payment scheduled to be issued on March 1, producing a 2.31% forward dividend yield as of Feb. 5.
GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $52.33 per share.
Acme United Corp
The second company that possesses the criteria is Acme United Corp ACU, a Fairfield, Connecticut-based supplier of cutting, first aid, measuring, safety and sharpening products to various users, including households, offices and schools in North America. The company serves several industrial markets as well.
The trailing 12-month net earnings increased 36.5% year over year to $2.02 per diluted share as of the September 2020 quarter, up from $1.48 per diluted share in the prior-year quarter.
The price-earnings ratio is 16.16 (versus the industry median of 19.98) as of Feb. 5.
Following a 37.2% increase over the past year, the stock traded at $32.65 per share at close on Friday for a market capitalization of $109.02 million and a 52-week range of $17.10 to $35.49.
Currently, Acme United Corp pays a quarterly cash dividend of 13 cents per common share, with the last payment made on Jan. 29, generating a trailing 12-month dividend yield of 1.5% as of Feb. 5.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has one median recommendation rating of buy with a target price of $35.50 per share.
Forestar Group Inc
The third company that makes the cut is Forestar Group Inc FOR, an Arlington, Texas-based real estate operator that acquires, develops and sells residential properties to homebuilders.
The trailing 12-month net earnings were $1.37 per diluted share as of the December 2020 quarter, representing a significant year over year increase of 30.5% from $1.05 per diluted share as of the same quarter in 2019.
The price-earnings ratio is 16.77 (versus the industry median of 14.24) as of Feb. 5.
Thanks to a 14.39% increase over the past year, the stock was trading at $22.98 per share at close on Friday for a market capitalization of $1.10 billion and a 52-week range of $9.43 to $23.97.
Forestar Group Inc does not pay dividends.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $27.50 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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