If you are in search of bargain opportunities, you may want to have a look at the following three stocks, as they meet the criteria listed below:
- A price-earnings ratio of less than 20
- A lower 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 exceeding the S&P 500, which saw its dividends per share grow at a compound annual growth rate (CAGR) of about 4.1% over the past three years through Dec. 31.
Celanese Corp
The first stock that makes the cut is Celanese Corp (CE, Financial), an Irving, Texas-based manufacturer and seller of high-performance engineered polymers in North America and internationally.
The stock price closed at $137.52 per share on Monday for a market cap of $15.70 billion, a price-earnings ratio of 8.10 (versus the industry median of 23.23) and an enterprise-value-to-Ebitda ratio of 6.83 (versus the industry median of 13.56).
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.
Celanese Corp currently pays dividends to its shareholders in the amount of 68 cents per common share every quarter and has increased them by 12.50% every year over the past three years. The last payment was made on Nov. 10, 2020 for a trailing 12-month dividend yield of 1.55%, while the next payment will be issued on Tuesday, Feb. 23 for a forward dividend yield of 1.99% as of Feb. 22.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $143.14 per share.
Shinhan Financial Group Co Ltd
The second stock that makes the cut is Shinhan Financial Group Co Ltd (SHG, Financial), a South Korean bank providing financial services and products in South Korea and internationally.
The stock price closed at $29.27 per share on Monday for a market cap of $15.12 billion, a price-earnings ratio of 4.88 (versus the industry median of 12.43) and an enterprise-value-to-Ebitda ratio of 4.82 (versus the industry median of 3.35).
GuruFocus assigned a score of 2 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability rating.
Currently, Shinhan Financial Group Co Ltd pays an annual cash dividend to its shareholders, with the last payment of $1.507 per common share made on April 17, 2020 for a trailing 12-month dividend yield of 5.15% as of Feb. 22. The company has increased the dividend per share by 8.75% on average every year over the past three years. Regarding the next dividend to pay, a decision from the company's board of executives is expected for early March.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $38.92 per share.
M.D.C. Holdings Inc
The third stock that makes the cut is M.D.C. Holdings Inc (MDC, Financial), a Denver, Colorado-based homebuilding company.
The stock price closed at $56.51 per share on Monday for a market cap of $3.66 billion, a price-earnings ratio of 9.87 (versus the industry median of 12.4) and an enterprise-value-to-Ebitda ratio of 9.09 (versus the industry median of 10.71).
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.
Currently, M.D.C. Holdings Inc pays dividends to its shareholders in the amount of 40 cents per common share every quarter for a trailing 12-month and forward dividend yield of 2.58% as of Feb. 22. The company has increased the dividend per share by 17.5% every year over the past three years.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $68.60 per share.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Stocks Trading Below Intrinsic Value
- 3 Low Price-to-Median-Price-Sales Stocks to Consider
- A Trio of Stocks Trading Near the GF Value Line
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