The following three stocks could be of interest to growth-focused investors, as they represent equities in businesses whose price-earnings ratios are trading below 20 while their trailing 12-month earnings per share went up meaningfully over the past year.
Kinross Gold Corp
The first company that makes the cut is Kinross Gold Corp KGC, a Toronto, Canada-based developer, explorer and producer of gold assets through mining activities in the U.S., Brazil, Chile, Russia, Ghana and Mauritania.
The trailing 12-month net earnings without non-recurring items increased by 80.9% year over year to $1.06 per share as of the December 2020 quarter, up from 57 cents per share as of the prior-year quarter.
The price-earnings ratio is 6.35 (versus the industry median of 19.29) as of April 1.
Due to a nearly 38% jump over the past year, the stock was trading at $7.02 per share at close on Thursday for a market capitalization of $8.88 billion and a 52-week range of $4.84 to $10.32.
Currently, the company is paying quarterly dividends to its shareholders with the last payment, 3 cents per common share, made on March 18, generating a 1.71% dividend yield as of April 1.
GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 3 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $11.68 per share.
Huntington Ingalls Industries Inc
The second company to consider is Huntington Ingalls Industries Inc HII, a Newport News, Virginia-based designer and builder of U.S. military ships.
The trailing 12-month net earnings without non-recurring items increased by 29.30% year over year to $17.14 per share as of the December 2020 quarter, up from $13.26 per share in the prior-year quarter.
The price-earnings ratio is 11.94 (versus the industry median of 28.5) as of April 1.
As a result of a 5.43% increase over the past year, the stock was trading at $204.23 per share at close on Thursday for a market capitalization of $8.23 billion and a 52-week range of $136.44 to $296.96.
Currently, Huntington Ingalls Industries Inc is paying a quarterly cash dividend of $1.14 per common share, with the last distribution issued on March 12 generating a dividend yield of 2.23% as of April 1.
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 with an average target price of $192.15 per share.
Berry Global Group Inc
The third company that qualifies is Berry Global Group Inc BERY, an Evansville, Indiana-based provider of packaging and container solutions.
The trailing 12-month net earnings without non-recurring items came in at $5.42 per diluted share as of the first quarter of the fiscal year 2021, which ended on Dec. 30, 2020, up 69.4% year over year from $3.20 per diluted share as of the comparable quarter for the fiscal year 2020.
The price-earnings ratio is 12.93 (versus the industry median of 15.83) as of April 1.
Following a 76% increase over the past year, the stock traded at $61.56 per share at close on Thursday for a market capitalization of $8.25 billion and a 52-week range of $33.41 to $63.24.
Berry Global Group Inc does not pay dividends.
GuruFocus assigned a score of 4 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 $72 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- A Trio of Stocks Growing Revenue Per Share Past
- 3 High-Yield Stocks for Dividend Investors
- 3 Stocks That Represent Potential Bargains
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