3 Stocks With Solid Records of Sales, Earnings Growth

These stocks could be potential value opportunities

Summary
  • Netflix., Tencent Music Entertainment Group and Altice USA 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 stocks listed below since they meet the following value 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.

Netflix

The first stock investors may want to consider is Netflix Inc. (NFLX, Financial), a Los Gatos, California-based provider of streaming entertainment services.

The company saw its trailing 12-month revenue per share grow by nearly 27% and its trailing 12-month earnings per share without non-recurring items grow by 40.54% over the past five years.

The chart shows the company has not reported a loss in the past five years.

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The stock closed at $180.97 per share on Friday for a market cap of approximately $80.40 billion and a price-earnings ratio of 16.42.

Netflix does not pay dividends.

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 10 out of 10 to the company.

Wall Street sell-side analysts issued a median recommendation rating of hold for the stock and an average target price of $323.40 per share.

Tencent Music

The second stock investors may want to consider is Tencent Music Entertainment Group (TME, Financial), a Chinese online entertainment platform providing music streaming, online karaoke and live streaming services.

The company saw its trailing 12-month revenue per share grow by 45.90% and its trailing 12-month earnings per share without non-recurring items grow by 12.70% over the past five years.

The chart shows the company did not report a loss over the past five years.

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The stock closed at $4.02 per share on Friday for a market cap of $6.81 billion and a price-earnings ratio of 14.57.

Tencent Music Entertainment Group does not pay dividends.

GuruFocus assigned a score of 8 out of 10 to the company's financial strength and a 7 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 $6.85 per share.

Altice USA

The final stock investors may want to consider is Altice USA Inc. (ATUS, Financial), a Long Island, New York-based provider of broadband communications and video services in North America, Puerto Rico and the Virgin Islands.

The company saw its trailing 12-month revenue per share grow by nearly 18% and its trailing 12-month earnings per share without non-recurring items grow by 35.97% over the past five years.

The chart shows the company has not reported a loss in the past five years.

1523004299079131136.pngThe stock closed at $10.22 per share on Friday for a market cap of $4.65 billion and a price-earnings ratio of 5.11.

Currently, the company is not paying dividends.

GuruFocus assigned a score of 3 out of 10 to the company's financial strength and a 7 out of 10 rating to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $16.17 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