In my opinion, investors may want to consider the three stocks listed below, as they meet the following criteria:
- Their price-earnings ratios trade below 20.
- Their earnings and revenue, both on a per share basis, have advanced strongly over the past five years, while no losses were posted during the observed period.
- These stocks have positive recommendation ratings among sell-side analysts on Wall Street.
American Financial Group Inc
The first stock investors may want to consider is American Financial Group Inc (AFG, Financial), a Cincinnati, Ohio-based provider of property and casualty insurance as well as annuity products in the United States.
The company saw its trailing 12-month revenue per share increase by 5.3% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 14.2% over the past five years.
The price-earnings ratio (7.75 as of Friday) declined 0.9% on average every year over the years observed.
The stock traded at around $128.70 per share at close on Friday for a market cap of $10.97 billion and a 52-week range of $51.55 to $128.87. Currently, the company pays a quarterly cash dividend of 50 cents per common share and has a forward dividend yield of 1.56% as of May 7.
GuruFocus assigned a score of 5 out of 10 to both the company's financial strength rating and its profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock and an average target price of $134.50 per share.
Western Alliance Bancorp
The second stock investors may want to consider is Western Alliance Bancorp (WAL, Financial), a Phoenix, Arizona-based regional bank focusing on banking products and related services.
The company saw the trailing 12-month revenue per share increase by 16.5% while the trailing 12-month EPS without NRI increased by 21.5% on average every year over the past five years.
The price-earnings ratio (17.43 as of Friday) has declined over the past five years.
The stock was trading at around $106.70 per share at close on Friday for a market cap of $11.04 billion and a 52-week range of $26.75 to $109.84. Currently, the company pays a quarterly cash dividend of 25 cents per common share and has a forward dividend yield of 0.94% as of May 7.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and of 6 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend a median rating of buy for this stock and an average target price of $120.17 per share.
Autohome Inc
The third stock investors may want to consider is Autohome Inc (ATHM, Financial), a Chinese operator of websites that provide information to automobile consumers in the People's Republic of China
The company saw its trailing 12-month revenue per share increase by 16.5% and its trailing 12-month EPS without NRI increase by 29.2% per year over the past five years.
The price-earnings ratio (22.16 as of Friday) increased by 0.5% during the time period in question.
The stock traded at around $93.02 per share at close on Friday for a market capitalization of $11.63 billion and a 52-week range of $72.38 to $147.67. On March 5, the company paid an annual cash dividend of 87 cents per common share. It has a forward dividend yield of 0.94% as of May 8.
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 and an average target price of about $123.07 per share.
Disclosure: I have no positions in any securities mentioned.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
