If you are looking for bargain opportunities, then you should consider the following stocks since they meet the criteria listed below:
- A price-earnings ratio of less than 20.
- An enterprise-value-to-Ebitda ratio near or below the historical low of the S&P 500 over the past seven years (which stands at around 10.54).
- A robust dividend growth exceeding the S&P 500, which has seen its dividends per share grow at a compound annual growth rate of about 4% over the past three years through Dec. 31.
Radian Group
The first stock that qualifies is Radian Group Inc. RDN, a Philadelphia-based specialty insurer serving mortgage originators and lenders, mortgage investors, government-sponsored enterprises and real estate investors, brokers and agents.
The stock closed at $22.12 per share on Monday for a market cap of $4.24 billion, a price-earnings ratio of 11, an enterprise-value-to-Ebitda ratio of 10.32 and a three-year dividend growth rate of 268.4%.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $25.55 per share.
Embotelladora Andina
The second stock that makes the cut is Embotelladora Andina SA AKO.B, a Chilean producer, marketer and distributor of Coca-Cola trademark beverages in South America.
The stock closed at $15.5 per share on Monday for a market cap of $2.45 billion, a price-earnings ratio of 15.59, an enterprise-value-to-Ebitda ratio of 10.59 and a three-year dividend growth rate of 9.40%.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $18.49 per share.
Westlake Chemical Partners
The third stock that meets the criteria is Westlake Chemical Partners LP WLKP, a Houston-based producer and seller of ethylene and related products in the U.S.
The stock closed at $24.22 per share on Monday for a market cap of $852.52 million, a price-earnings ratio of 12.81, an enterprise-value-to-Ebitda ratio of 4.10 and a three-year dividend growth rate of 9.40%.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $25.75 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Stocks Trading Below Intrinsic Value
- A Trio of Low Median Price-Sales Stocks to Consider
- 3 Stocks Trading Near the GF Value Line
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