A Trio of Stocks for Growth-Oriented Investors

These stocks appear cheap and are growing their trailing 12-month net earnings

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Alberto Abaterusso
Apr 05, 2021
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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, Financial), 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, Financial), 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, Financial), 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.

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I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands. You can follow me on Twitter at https://twitter.com/AAbaterusso