In my opinion, investors may be interested in the following three stocks, as they meet the below criteria:
- Their price-earnings ratios stand below 20.
- Their earnings and revenue, both on a per share basis, have improved over the past five years, while no losses were reported during the observed period.
- These stocks have positive recommendation ratings amid the community of sell-side analysts on Wall Street.
Asbury Automotive Group Inc
The first stock to consider is Asbury Automotive Group Inc (ABG, Financial), a Duluth, Georgia-based automotive retailer of new and used vehicles, spare parts and related services of vehicle maintenance and repair in the U.S.
The company saw its trailing 12-month revenue per share increase by 8.4% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 14% over the past five years.
The price-earnings ratio (14.55 as of Friday) increased 1.6% per year on average over the years in question.
The stock traded at around $191.05 per share at close on Friday for a market cap of $3.69 billion. Currently, the company is not paying dividends.
GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10 to the company.
Wall Street sell-side analysts recommend a median rating of overweight for this stock.
Walker & Dunlop Inc
The second stock to consider is Walker & Dunlop Inc (WD, Financial), a Bethesda, Maryland-based specialty financial services company providing various products and services to owners and developers of real estate properties in the United States.
The trailing 12-month revenue per share increased by 16.1% while the trailing 12-month EPS without NRI grew by 19.8% every year over the past five years. The price-earnings ratio (13.82 as of Friday) increased by 1.7% per year on average over the time period observed.
The stock was trading at around $106.30 per share at close on Friday for a market cap of $3.35 billion and a forward dividend yield of 1.88%.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 8 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock.
Nu Skin Enterprises Inc
The third stock to consider is Nu Skin Enterprises Inc (NUS, Financial), a Provo, Utah-based developer and distributor of skincare products, various nutritional supplements and weight management products primarily in China through retail stores and service centers as well as online.
The company saw its trailing 12-month revenue per share increase by 4.9% and its trailing 12-month EPS without NRI increase by 8.6% per year over the past five years. The price-earnings ratio (14.37 as of Friday) went up around 0.4% during the period in question as well.
The stock traded at around $52.46 per share at close on Friday for a market capitalization of $2.67 billion and a forward dividend yield of 2.9%.
GuruFocus assigned the company a score of 6 out of 10 for its financial strength rating and 8 out of 10 for the profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Stock Picks for the Value Investor
- 3 Large Caps Announce Higher Dividends
- 3 Fast-Growing Earnings Stocks
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