As of March 4, the three stocks below appear undervalued by the market, as their price-earnings ratios without non-recurring items (NRI) trade below 20 while their price-earnings to growth (PEG) ratios stand near 1.
Furthermore, these stocks have received positive recommendation ratings from the community of sell-side analysts on Wall Street.
Griffon Corp
The first company that qualifies is Griffon Corp (GFF, Financial), a New York-based manufacturer and seller of various tools and accessories, including home and building products as well as professional and defense electronics products.
As of March 4, the price-earnings ratio without NRI is 16.36, which is more appealing than the industry median of 26.21, while the PEG ratio of 1.04 is also more appealing than the industry median of 2.47.
The stock had net earnings of $1.50 per share for the trailing 12 months that ended in December 2020 and a five-year Ebitda growth rate of 15.70%.
On March 4, the closing price was $24.58 per share. The share price has risen by 46.22% over the past year for a market capitalization of $1.38 billion and a 52-week range of $9.15 to $27.53.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and of 7 out of 10 for its profitability.
As of March, Wall Street sell-side analysts recommended a median rating of buy and an average target price of $30.67 per share for the stock.
Ebix Inc
The second company that qualifies is Ebix Inc (EBIX, Financial), a Johns Creek, Georgia-based provider of on-demand software and e-commerce services and solutions to several industries in the U.S. and internationally. These industries include financial services, healthcare and e-learning.
As of March 4, the price-earnings ratio without NRI is 7.91, which is more compelling than the industry median of 31.37, while the PEG ratio is 0.44, which appeals more than the industry median of 2.18.
The stock had net earnings of $3.08 per share for the trailing 12 months that ended in September 2020 and a five-year Ebitda growth rate of 18.10%.
The closing price on March 4 was $24.35 per share. The share price has increased by 2.7% over the past year, determining a market capitalization of $753.94 million and a 52-week range of $8.75 to $64.14.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and of 10 out of 10 for its profitability.
As of March, Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $54.75 per share.
Fidelity National Financial
The third company that qualifies is Fidelity National Financial Inc. (FNF, Financial), a Jacksonville, Florida-based financial services company focusing on providing various insurance products to consumers, businesses and industries in the United States.
As of March 4, the price-earnings ratio without NRI is 7.45, which is appealing more than the industry median of 13.25, while the PEG ratio trades at 0.61, which is also more appealing than the industry median of 1.77.
The stock had net earnings of $5 per share for the trailing 12 months that ended in December 2020 and a five-year Ebitda growth rate of 12.20%.
The closing price on March 4 was $37.23 per share. The share price decreased by 13.66% over the past year for a market capitalization of $10.84 billion and a 52-week range of $19 to $46.23.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability.
As of March, Wall Street sell-side analysts recommend a median rating of buy with an average target price of $50.20 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
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