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, Financial), 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, Financial), 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, Financial), 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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