The three stocks listed below could be of interest to growth-focused investors, as they represent equities in companies whose price-earnings ratios are standing below 20 while their trailing 12-month earnings per share have significantly increased over the past year.
Gaming and Leisure Properties Inc
The first company that makes the cut is Gaming and Leisure Properties Inc GLPI, a Wyomissing, Pennsylvania-based specialty real estate investment trust focusing on properties that are leased to gaming operators.
The trailing 12-month net earnings increased by 27.1% year over year to $2.30 per diluted share as of the December 2020 quarter, up from $1.81 per diluted share as of the prior-year quarter.
The price-earnings ratio is 18.16 (versus the industry median of 20.73) as of March 8.
Following a 2.5% decline over the past year, the stock was trading at $41.59 per share at close on Monday for a market capitalization of $9.68 billion and a 52-week range of $13.04 to $45.75.
Currently, the company is paying quarterly dividends to its shareholders with the next payment, 65 cents per common share (up 8.33% from the previous one), scheduled to be issued on March 23, generating a 6.24% forward dividend yield as of March 8.
GuruFocus assigned a score of 3 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 $48.09 per share.
Lithia Motors Inc
The second company to consider is Lithia Motors Inc LAD, a Medford, Oregon-based operator of new and used vehicles stores and a provider of connected financial and insurance products.
The trailing 12-month proforma net earnings increased 55% year over year to $18.19 per diluted share as of the December 2020 quarter, up from $11.76 per diluted share in the prior-year quarter.
The price-earnings ratio is 19.65 (versus the industry median of 24.69) as of March 8.
Following a 264.20% increase over the past year, the stock traded at $377.82 per share at close on Monday for a market capitalization of $10.06 billion and a 52-week range of $55.74 to $392.60.
Currently, Lithia Motors Inc is paying a quarterly cash dividend of 31 cents per common share, with the next distribution to be made on March 26, generating a forward dividend yield of 0.33% as of March 8.
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 a median recommendation rating of overweight with an average target price of $381.91 per share.
First Horizon Corp
The third company that makes the cut is First Horizon Corp FHN, a Memphis, Tennessee-based regional bank.
The trailing 12-month proforma net earnings were $1.89 per diluted share as of the December 2020 quarter, representing a significant year-over-year increase of 55% from $1.22 per diluted share as of the same quarter in 2019.
The price-earnings ratio is 10.85 (versus the industry median of 12.86) as of March 8.
As a result of a 61.70% increase over the past year, the stock was trading at $17.14 per share at close on Monday for a market capitalization of $9.52 billion and a 52-week range of $6.27 to $17.66.
First Horizon Corp is currently paying a quarterly cash dividend of 15 cents per common share to its shareholders with the next distribution to issue on April 1, which generates a forward dividend yield of 3.5% as of March 8.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $17.93 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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