Growth-oriented investors may want to consider the following stocks, since they represent businesses with price-earnings ratios below 20 that recorded significant improvements in their trailing 12-month net income per share over the past year.
Webster Financial Corporation
The first company that qualifies is Webster Financial Corporation (WBS, Financial), a Stamford, Connecticut-based regional bank providing consumers, households and companies with banking, investment and financial services through the operation of 130 banking centers and 251 ATMs.
Trailing 12-month net income from continuing operations for the quarter ended Dec. 31, 2021 was $4.24 per diluted share, up 88.1% from $2.35 in the prior-year quarter.
The price-earnings ratio is 11.90 (versus the industry median of 10.08) as of Tuesday.
Following a 13.71% decline over the past year, the stock traded at $52.47 per share at close on Tuesday for a market capitalization of $9.42 billion and a 52-week range of $45.60 to $65.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $71.82 per share.
Price T Rowe Associates Inc. is the largest top fund holder of the company with 5.22% of total shares outstanding. The investment firm is followed by Vanguard Group Inc. with 5.12% and BlackRock Inc. with 4.50% of shares outstanding.
Service Corp International
The second company that makes the cut is Service Corp International (SCI, Financial), a Houston, Texas-based provider of funeral products and services in North America.
Trailing 12-month net income from continuing operations for the quarter ended Dec. 31, 2021 was $4.72 per diluted share, up 64% from $2.88 in the prior-year quarter.
The price-earnings ratio is 12.69 (versus the industry median of 18.72) as of Tuesday.
After a 26.86% increase that occurred over the past year, the stock was trading around $59.88 per share on Tuesday for a market capitalization of $9.67 billion and a 52-week range of $47.02 to $71.70.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 10 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average target price of $75 per share.
Among the top fund holders of the company, Baillie Gifford (Trades, Portfolio) is the largest with 10.93% of shares outstanding, followed by BlackRock Inc. with 9.85% and Vanguard Group Inc. with 9.84%.
Newell Brands Inc.
The third company that matches the criteria is Newell Brands Inc. (NWL, Financial), an Atlanta, Georgia-based manufacturer and global distributor of consumer and commercial products.
Trailing 12-month net income from continuing operations for the quarter ended Dec. 31, 2021 was $1.34 per diluted share, a positive change from a net loss of $1.82 in the same quarter last year.
The price-earnings ratio is 17.1 (versus the industry median of 17.86) as of Tuesday.
Following a 10.04% decrease over the past year, the stock was trading around $22.12 per share at close on Tuesday for a market capitalization of $9.68 billion and a 52-week range of $20.36 to $30.10.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $28.92 per share.
BlackRock Inc. is the largest shareholder of the company with 12.21% of total shares outstanding, followed by Vanguard Group Inc. with 10.11% and Carl Icahn (Trades, Portfolio) with 8.35%.
