3 Stocks Shining as Bargains

These stocks draw the interest of investors

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Alberto Abaterusso
Jun 16, 2021

Summary

  • Fidelity National Financial Inc., Bunge Ltd and American Financial Group Inc seem to be cheap in terms of their price-earnings and enterprise-value-to-Ebitda ratios
  • They have also achieved robust dividend growth over the past 3 years, beating the S&P 500 index
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If you are in search of bargain opportunities among U.S.-listed equities, then you may want to consider the following three stocks, as they match the criteria listed below:

  • A price-earnings ratio of less than 20.
  • A smaller enterprise-value-to-Ebitda ratio compared to the historical mean of the S&P 500 over the past seven years (which is 10.54 currently).
  • A robust dividend growth exceeding the S&P 500, which saw its dividends per share increase at a compound annual rate of about 2.8% over the past three years through March 31.

Fidelity National Financial Inc

The first stock that qualifies is Fidelity National Financial Inc. (

FNF, Financial), a Jacksonville, Florida-based financial services company focusing on providing various insurance products, including life insurance, annuities and home warranty insurance products, for U.S. individuals. Also, the company is a real estate broker as well as a provider of the real estate and mortgage industries with technology and transaction services in the United States.

The stock was trading at $46.79 per share at close on Tuesday for a market cap of $13.52 billion, a price-earnings ratio of 6.49 (versus the industry median of 11.98) and an enterprise value-to-Ebitda ratio of 4.38 (versus the industry median of 8.20).

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GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and 6 out of 10 to its profitability rating.

Fidelity National Financial Inc's quarterly dividend per share for the March 2021 quarter was 36 cents. The trailing 12-month dividend has increased by 9.80% every year over the past three years, versus the industry median of 4%.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $54.60 per share.

Bunge Ltd

The second stock that makes the cut is Bunge Ltd (

BG, Financial), a St. Louis, Missouri-based global farm products company focusing on agricultural commodities and commodity products, as well as packaged and bulk oils and fats. The company is also a provider of wheat flours, bakery mixes and corn milling products. Additionally, the company offers various fertilizers, produces sugar and ethanol and generates electricity from burning sugarcane bagasse.

The stock was trading at $81.45 per share at close on Tuesday for a market cap of $11.52 billion, a price-earnings ratio of 5.59 (versus the industry median of 19.65) and an enterprise value-to-Ebitda ratio of 5.68 (versus the industry median of 11.96).

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

Bunge Ltd.'s quarterly dividend per share for the March 2021 quarter was 50 cents. The trailing 12-month dividend has increased by 4.4% every year over the past three years, versus the industry median of 1.70%.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $96.89 per share.

American Financial Group Inc

The third stock that qualifies 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 stock closed at $125.07 per share on Tuesday for a market cap of $10.64 billion, a price-earnings ratio of 7.53 (versus the industry median of 11.98) and an enterprise value-to-Ebitda ratio of 5.59 (versus the industry median of 8.20).

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GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

American Financial Group Inc’s quarterly dividend per share for the March 2021 quarter was 50 cents. The trailing 12-month dividend has increased by 12.80% every year over the past three years, versus the industry median of 4%.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $136.50 per share.

Disclosure: I have no positions in any securities mentioned.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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