When screening the market for value opportunities, investors may want to consider the following stocks, as they represent companies with high profitability and robust financial conditions. These qualities are represented by GuruFocus profitability and financial strength ratings of at least 6 out of 10.
Additionally, sell-side analysts on Wall Street have recommended positive ratings for these stocks.
Zebra Technologies Corp
The first stock that makes the cut is Zebra Technologies Corp (ZBRA, Financial), a Lincolnshire, Illinois-based global manufacturer and seller of automatic identification and data capture products.
GuruFocus rated its financial strength 6 out of 10, driven by an Altman Z-Score of 7.69, which indicates the company is in the safe zone regarding its financial situation.
GuruFocus rated its profitability 8 out of 10, driven by a return on capital (ROC) ratio of 229.01% versus the industry median of 12.82%.
The share price ($510.98 as of Oct. 1) has risen by nearly 91% over the past year for a market capitalization of $27.29 billion, a price-earnings ratio of 36.11 and a price-book ratio of 10.54.
The price-sales ratio is 5.33 and the 52-week range is $252.52 to $594.77.
On Wall Street, the stock has four strong buys, two buys and five hold recommendation ratings with an average target price of $596 per share.
Trimble Inc
The second stock that qualifies is Trimble Inc (TRMB, Financial), a Sunnyvale, California-based scientific and technical instruments company that provides professionals and field mobile workers worldwide with solutions to improve their work processes.
GuruFocus rated its financial strength 6 out of 10, driven by an Altman Z-Score of 5.32, which indicates safe zones, so the company currently benefits from a healthy financial situation.
GuruFocus rated its profitability 8 out of 10, driven by three-year earnings per share without non-recurring items growth rate of 49.9% versus the industry median of 6.6%.
The share price ($84.14 as of Oct. 1) has risen by 65.9% over the past year for a market capitalization of $21.17 billion, a price-earnings ratio of 41.04 and a price-book ratio of 5.51.
The price-sales ratio is 6.18 and the 52-week range is $47.19 to $96.48.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $94.76 per share.
Lattice Semiconductor Corp
The third stock that meets the criteria is Lattice Semiconductor Corp (LSCC, Financial), a Hillsboro, Oregon-based developer and global seller of semiconductors.
GuruFocus rated its financial strength 7 out of 10, driven by a Piotroski F-Score of 8, which indicates the company benefits from a healthy financial situation, and an Altman Z-Score of 18.91, suggesting it is not in danger of bankruptcy.
The company's profitability scored a 6 out of 10 rating, driven by a three-year Ebitda per share growth rate of 117.8% versus the industry median of 9.5%.
The share price ($65.74 as of Oct. 1) has risen by 121.65% over the past year for a market capitalization of $8.97 billion, a price-earnings ratio of 136.96 and a price-book ratio of 22.56.
The price-sales ratio is 20.64 and the 52-week range is $28.06 to $68.76.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $62.40 per share.
Disclosure: I have no positions in any securities mentioned.
