When looking for value opportunities, investors could be interested in the three stocks listed below, as they represent equities in companies with high profitability and robust financial conditions. These qualities are represented by GuruFocus profitability and financial strength ratings of at least 7 out of 10.
Furthermore, sell-side analysts on Wall Street have recommended positive ratings for them.
Corcept Therapeutics Inc
The first stock that makes the cut is Corcept Therapeutics Inc (CORT, Financial), a Menlo Park, California-based biotechnology developer of treatments for U.S. patients affected by serious metabolic, oncologic and psychiatric disorders.
GuruFocus rated its financial strength 8 out of 10, driven by a debt-to-Ebitda ratio of 0.02, which ranks better than 97.70% of 261 competitors operating in the biotechnology industry, and an Altman Z-Score of 41.03.
GuruFocus rated its profitability 7 out of 10, driven by an operating margin of 32.38%, a net margin of 29.23% and a return on capital (ROC) ratio of 2,202.67%, These ratios are ranking better than 92.78%, 91.88% and 98.97% of industry competitors, respectively.
The share price ($22.99 as of June 17) has risen 42.05% over the past year for a market capitalization of $2.66 billion, a price-earnings ratio of 29.47 and a price-book ratio of 5.24.
The price-sales ratio is 8.45 and the 52-week range is $12.20 to $31.18.
On Wall Street, as of June, the stock has a median recommendation rating of overweight and an average target price of $26.50 per share.
XPEL Inc
The second stock that makes the cut is XPEL Inc (XPEL, Financial), a San Antonio, Texas-based manufacturer, distributor and installer of aftermarket automotive products in North America and internationally.
GuruFocus rated its financial strength 8 out of 10, driven by a debt-to-Ebitda ratio of 0.38 (versus the industry median of 2.75), an interest coverage ratio of 108.21 (versus the industry median of 8.05) and an Altman Z-Score of 44.96.
GuruFocus rated its profitability 10 out of 10, driven by a return on equity (ROE) ratio of 50.2% (which ranks better than 97.75% of competitors) and a return on capital (ROC) ratio of 120.05% (which ranks better than 99.07% of competitors). Additionally, the three-year EPS without NRI growth rate yields 154.6% versus the industry median of -5.8%.
The share price ($86.78 as of June 17) has risen by 408.08% over the past year for a market capitalization of $2.40 billion, a price-earnings ratio of 102.16 and a price-book ratio of 39.92.
The price-sales ratio is 13.14 and the 52-week range is $14.06 to $94.21.
On Wall Street, as of June, the stock has a median recommendation rating of buy and an average target price of $105 per share.
Usana Health Sciences Inc
The third stock that qualifies is Usana Health Sciences Inc (USNA, Financial), a Salt Lake City, Utah-based manufacturer and seller of nutritional and personal care products.
GuruFocus rated its financial strength 9 out of 10, driven by a debt-to-Ebitda ratio of 0.04 (which ranks higher than 96.79% of competitors) and an interest coverage ratio of 370.01 (which ranks higher than 91.08% of competitors). Additionally, the stock has a Piotroski F-Score of 8 out of 9 and an Altman Z-Score of 11.22, indicating a stable financial situation.
GuruFocus rated the company's profitability 9 out of 10, driven by a return on equity (ROE) ratio of 33.87% and a return on capital (ROC) ratio of 185.79%, ranking better than 93.83% and 98.29% of competitors, respectively. Additionally, the three-year EPS without NRI growth rate is 32.3% versus the industry median of 3.2%.
The share price ($102.84 as of June 17) has increased by nearly 35% over the past year for a market capitalization of $2.08 billion, a price-earnings ratio of 16.91 and a price-book ratio of 5.19.
The price-sales ratio is 1.85 and the 52-week range is $68.30 to $107.85.
On Wall Street, as of June, the stock has a median recommendation rating of overweight and an average target price of $115 per share.
Disclosure: I have no positions in any securities mentioned.
