Stocks With a Solid History of Sales and Earnings Growth

These stocks could be potential value opportunities

Summary
  • Meta Financial Group, Otter Tail and Level One Bancorp improved their revenue and earnings per share over the past five years.
  • Shares seem to be fairly valued as their price-earnings ratios are below 20.
  • Analysts are positive about these companies.
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Investors may want to consider the following stocks since they meet the following criteria:

  1. They trade with a price-earnings ratio of 20 or below.
  2. Their earnings and revenue, both on a per-share basis, have improved over the past five years, while no losses occurred in any of the years observed.
  3. These stocks have positive recommendation ratings among sell-side analysts on Wall Street.

Meta Financial Group

The first stock investors may want to consider is Meta Financial Group Inc. (CASH, Financial), a Sioux Falls, South Dakota-based regional bank.

The company saw its trailing 12-month revenue per share grow by 21.4% and its trailing 12-month earnings per share without non-recurring items grow by 25.6% over the past five years. The price-earnings ratio (14.71 as of Monday) increased by a lower growth rate of 0.7% on average every year over the period observed.

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The stock closed at $62.79 per share on Monday for a market cap of approximately $1.99 billion. Currently, the company pays a quarterly cash dividend of 5 cents per share for a forward dividend yield of 0.32%.

GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10 to the company.

Wall Street sell-side analysts issued a median recommendation rating of buy for the stock and an average target price of $63.75 per share.

Otter Tail

The second stock investors may want to consider is Otter Tail Corp. (OTTR, Financial), a Fergus Falls, Minnesota-based regional electric company.

The company saw its trailing 12-month revenue per share grow by 1.8% and its trailing 12-month earnings per share without NRI grow by 9.1% annually over the past five years. The price-earnings ratio (20 as of Monday) increased by a lower growth rate of 1.1% on average every year over the period observed.

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The stock closed at $60.93 per share on Monday for a market cap of $2.54 billion and a 52-week range of $37.52 to $61.47. Currently, the company pays a quarterly cash dividend of 39 cents per share, determining a forward dividend yield of 2.56%.

GuruFocus assigned a score of 4 out of 10 to the company's financial strength and a 6 out of 10 rating to its profitability.

Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and an average target price of $63.33 per share.

Level One Bancorp

The third stock investors may want to consider is Level One Bancorp Inc. (LEVL, Financial), a Farmington Hills, Michigan-based regional bank.

The company saw its trailing 12-month revenue per share grow by 15% and its trailing 12-month earnings per share without NRI grow by 11.6% annually over the past five years. The price-earnings ratio (8.13 as of Monday) fell 0.2% every year over the past five years.

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The stock closed at $29.53 per share on Monday for a market capitalization of $225.64 million and a 52-week range of $15.75 to $31.99. Currently, the company pays a quarterly cash dividend of 6 cents per share, determining a forward dividend yield of 0.81%.

GuruFocus assigned a score of 3 out of 10 to the company's financial strength and 4 out of 10 to its profitability rating.

Wall Street issued a median recommendation rating of overweight for the stock and an average target price of $32.33 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure