A Trio of Stocks That Could Represent Bargain Opportunities

Dick's Sporting Goods tops the list

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Alberto Abaterusso
Apr 21, 2021
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If you are screening the universe of U.S.-listed equities in search of bargain opportunities, then you may want to consider the three stocks listed below, as they meet the following criteria:

  • A price-earnings ratio of less than 20.
  • A smaller enterprise-value-to-Ebitda ratio versus the historical mean of the S&P 500 over the past six and a half years (which stands at around 10.54 currently).
  • A robust dividend growth exceeding the S&P 500, which saw its dividends per share grow at a compound annual rate of about 3% over the past three years through March 31.

Dick's Sporting Goods

The first stock that qualifies is Dick's Sporting Goods Inc. (

DKS, Financial), a Coraopolis, Pennsylvania-based operator of nearly 730 sporting goods retail stores in the eastern United States.

The stock closed at $82.86 per share on Tuesday for a market cap of $7.40 billion, a price-earnings ratio of 15.18 (versus the industry median of 22.84) and an enterprise value-to-Ebitda ratio of 8.18 (versus the industry median of 12.85).

GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and of 8 out of 10 to its profitability rating.

Dick's Sporting Goods currently pays dividends to its shareholders every quarter and has increased them by 22.5% every year over the past three years. The last payment of 36.3 cents per common share (up 16% from prior distribution) was made on March 26 for a trailing dividend yield of 1.56% and a forward dividend yield of 1.75% as of April 20.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $79.40 per share.

Barrett Business Services

The second stock that meets the criteria is Barrett Business Services Inc. (

BBSI, Financial), a Vancouver-based provider of business management solutions to small and mid-sized U.S. companies.

The stock closed at $68.98 per share on Tuesday for a market cap of $523.79 million, a price-earnings ratio of 15.71 (versus the industry median of 22.75) and an enterprise value-to-Ebitda ratio of 7.84 (versus the industry median of 13.01).

GuruFocus assigned a score of 6 out of 10 to both the company's financial strength and profitability.

Currently, Barrett Business Services pays a quarterly cash dividend of 30 cents per common share and has increased it by an annual average growth rate of 6.3% over the past three years. The last payment was issued on April 2 for a trailing 12-month and forward dividend yield of 1.74% as of April 20.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $82.25 per share.

PT Telekomunikasi Indonesia

The third stock that makes the cut is PT Telekomunikasi Indonesia (Persero) Tbk (

TLK, Financial), an Indonesian global provider of telecommunication services.

The stock closed at $22.8 per share on Tuesday for a market cap of $22.59 billion, a price-earnings ratio of 17.05 (versus the industry median of 20.81) and an enterprise value-to-Ebitda ratio of 5.29 (versus the industry median of 8.88).

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

Currently, PT Telekomunikasi Indonesia pays annual dividends to its shareholders and has increased them by 3.6% on average every year over the past three years. The last payment was made on Aug. 8, 2020, consisting of 79.2 cents cash per common share, generating a 3.48% return in terms of both trailing 12-month and forward dividend yields.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $28.82 per share.

Disclosure: I have no positions in any securities mentioned.

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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