If you are screening the market for bargain opportunities among U.S.-listed equities, then you may want to consider the following stocks, since they meet the criteria listed below:
- A price-earnings ratio of less than 20.
- A lower enterprise value-to-Ebitda ratio versus the historical mean of the S&P 500 over the past seven years (which is 10.54 currently).
- Robust dividend growth exceeding the S&P 500, which saw its dividends per share increase at a compound annual rate of about 1.7% over the past three years through June 30.
Steel Dynamics Inc
The first stock that makes the cut is Steel Dynamics Inc (STLD, Financial), a Fort Wayne, Indiana-based steel producer and metal recycler with operating activities in the U.S.
The stock was trading at $70.91 per share at close on Friday for a market cap of $14.47 billion, a price-earnings ratio of 10.57 (versus the industry median of 11.59) and an enterprise value-to-Ebitda ratio of 7.27 (versus the industry median of 7.91).
GuruFocus assigned a score of 6 out of 10 to the company's financial strength rating and 7 out of 10 to its profitability rating.
Steel Dynamics Inc's quarterly dividend per share for the June quarter was 26 cents. The trailing 12-month dividend has increased by 17.30% every year over the past three years versus the industry median of -16.40%.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $80.40 per share.
Brunswick Corp
The second stock that qualifies is Brunswick Corp (BC, Financial), a Mettawa, Illinois-based designer and manufacturer of outboard, sterndrive and inboard engines as well as engine parts and consumables under the Mercury Marine, Mercury, Mercury MerCruiser, Mariner, Mercury Racing and Mercury Diesel brands. The company also provides sport boats and cruisers.
The stock was trading at $102.84 per share at close on Friday for a market cap of $7.97 billion, a price-earnings ratio of 13.95 (versus the industry median of 25.79) and an enterprise value-to-Ebitda ratio of 8.55 (versus the industry median of 17.78).
GuruFocus assigned a score of 6 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.
On June 15, Brunswick Corp paid a quarterly dividend per share of 33.5 cents. The trailing 12-month dividend has increased by 13.1% every year over the past three years, versus the industry median of -24.2%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $122.07 per share.
MDU Resources Group Inc
The third stock that makes the cut is MDU Resources Group Inc (MDU, Financial), a Bismarck, North Dakota-based distributor of regulated electricity and gas, as well as a miner, processor and seller of construction aggregates. The company conducts all its operating activities in the United States.
The stock closed at $32.34 per share on Friday for a market cap of $6.55 billion, a price-earnings ratio of 15.55 (versus the industry median of 15.29) and an enterprise value-to-Ebitda ratio of 10.05 (versus the industry median of 8.96).
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
MDU Resources Group Inc's quarterly dividend per share for the June quarter was 21.3 cents. The trailing 12-month dividend has increased by 2.50% every year over the past three years, versus the industry median of -11.2%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $38.50 per share.
Rent-A-Center Inc
The fourth stock that makes the cut is Rent-A-Center Inc (RCII, Financial), a Plano, Texas-based leasing company that offers household durable goods such as furniture and accessories, appliances and consumer electronics to customers on a lease-to-own basis. The company owns and operates 89 retail installment sales and preferred lease-staffed stores located in North Carolina. It also has 121 stores located in Mexico and 462 franchised stores in 33 U.S. states.
The stock closed at $65.19 per share on Friday for a market cap of $4.33 billion, a price-earnings ratio of 17.67 (versus the industry median of 22.05) and an enterprise value-to-Ebitda ratio of 4.52 (versus the industry median of 11.81).
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 5 out of 10 to its profitability.
On July 13, Rent-A-Center Inc's quarterly dividend per share was 31 cents. The trailing 12-month dividend has increased by 94.6% every year over the past three years, versus the industry median of -3.1%.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $75.25 per share.
Disclosure: I have no positions in any securities mentioned.
