When screening the market for value opportunities, investors may want to consider stocks that 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.
The companies below meet the above criteria. Furthermore, sell-side analysts on Wall Street have recommended positive ratings for them.
IDEX Corp
The first stock that makes the cut is IDEX Corp. (IEX, Financial), a Lake Forest, Illinois-based producer and distributor of fluid and flow metering technologies, medical technologies and fire and safety products.
GuruFocus rated its financial strength 6 out of 10, driven by an Altman Z-Score of 7.18 and Piotroski F-Score of 6, which indicates the company is not in danger of bankruptcy and financial conditions are good.
GuruFocus rated its profitability 8 out of 10, driven by a return on capital ratio of 95.79% versus the industry median of 13.14%.
The share price ($236.29 as of Dec. 10) has risen by 22.64% over the past year for a market capitalization of $17.97 billion, a price-earnings ratio of 41.82 and a price-book ratio of 6.60.
The price-sales ratio is 6.79 and the 52-week range is $185.23 to $238.56.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $242.92 per share.
FactSet Research Systems Inc.
The second stock that qualifies is FactSet Research Systems Inc. (FDS, Financial), a Norwalk, Connecticut-based financial data and software company.
GuruFocus rated its financial strength 6 out of 10, driven by an Altman Z-Score of 11.04, which indicates that the company has a solid balance sheet.
GuruFocus rated its profitability 9 out of 10, driven by a return on equity ratio of 40.97% versus the industry median of 8.29%.
The share price ($466.07 as of Dec. 10) has risen by 35.14% over the past year for a market capitalization of $17.54 billion, a price-earnings ratio of 44.94 and a price-book ratio of 17.25.
The price-sales ratio is 11.29 and the 52-week range is $294.21 to $476.06.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of approximately $405.3 per share.
Qorvo Inc.
The third stock that qualifies is Qorvo Inc. (QRVO, Financial), a Greensboro, North Carolina-based developer of wireless and wired connectivity solutions for mobile manufacturers as well as infrastructure companies and other operators in the defense industry.
GuruFocus rated its financial strength 7 out of 10, driven by an Altman Z-Score of 5.19, which, coupled with a Piotroski F-Score of 8, suggests that the company is not at risk of bankruptcy as the financial situation is typical of stable companies.
The company's profitability rating scored 6 out of 10, driven by a return on capital ratio of 71.94% versus the industry median of 16.98%.
The share price ($159.23 as of Dec. 10) has risen by 3.05% over the past year for a market capitalization of $17.55 billion, a price-earnings ratio of 16.43 and a price-book ratio of 3.72.
The price-sales ratio is 4.01 and the 52-week range is $142.17 to $201.68.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $203.38 per share.
