In my opinion, investors may want to consider the following three stocks, as they meet the criteria listed below:
- Their price-earnings ratios trade below 20.
- Their earnings and revenue, both on a per share basis, have improved over the past five years, while no losses were posted in any of the years observed.
- These stocks have positive recommendation ratings among sell-side analysts on Wall Street.
Gaming and Leisure Properties Inc
The first stock for investors to consider is Gaming and Leisure Properties Inc (GLPI, Financial), a Wyomissing, Pennsylvania-based specialty real estate investment trust focusing on properties that are leased to gaming operators.
The company saw its trailing 12-month revenue per share grow by 2.7% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) grow by nearly 12.2% over the past five years. The price-earnings ratio (19.65 as of Monday) increased by 0.2% on average every year over the years observed.
The stock was trading at around $48.15 per share at close on Monday for a market cap of $11.28 billion. Currently, the company pays a quarterly cash dividend of 67 cents per common share for a forward dividend yield of 5.56% as of Monday.
GuruFocus assigned a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10 to the company.
Wall Street sell-side analysts recommend a median rating of buy for this stock and an average target price of $53.22 per share.
The Scotts Miracle Gro Co.
The second stock to consider is The Scotts Miracle Gro Co. (SMG, Financial), a Marysville, Ohio-based manufacturer and marketer of grass and other garden products.
The company saw its trailing 12-month revenue per share grow by 13% and its trailing 12-month EPS without NRI grow by 23.9% every year over the past five years. The price-earnings ratio (15.53 as of Monday) has declined 1.1% on average every year over the period observed.
The stock was trading at around $153.16 per share at close on Monday for a market cap of $8.55 billion and a 52-week range of $143.08 to $254.34. Currently, the company pays a quarterly cash dividend of 66 cents per common share, determining a forward dividend yield of 1.73% as of Monday.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and 7 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend a median rating of overweight for this stock and an average target price of $234.29 per share.
The Timken Co.
The third stock investors may want to consider is The Timken Co. (TKR, Financial), a North Canton, Ohio-based designer, manufacturer and marketer of bearings and power transmission products.
The company saw its trailing 12-month revenue per share grow by 8.6% and its trailing 12-month EPS without NRI grow by 18.5% per year over the past five years. The price-earnings ratio (16.79 as of Monday) has increased over the years in question, by just 0.3% every year.
The stock was trading at around $78.53 per share at close on Monday for a market capitalization of $5.99 billion and a 52-week range of $52.51 to $92.38. Currently, the company pays a quarterly cash dividend of 30 cents per common share with the next distribution scheduled for payment on Sept. 3. As a result, the stock offers a forward dividend yield of 1.53% as of Monday.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.
Wall Street recommends a median rating of buy for this stock and an average target price of $100.22 per share.
Disclosure: I have no positions in any securities mentioned.
