3 Stocks With Solid Records of Sales and Earnings Growth

These stocks could be potential value opportunities

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Jul 01, 2022
Summary
  • Merck & Co. Inc., Medical Properties Trust Inc. and Sanofi SA improved their revenue and earnings per share over the past 5 years.
  • Shares seem to be fairly valued as their price-earnings ratios are below 20.
  • Sell-side analysts are positive about these companies.
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Investors may want to consider the stocks in this article, in my view, 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.

Merck & Co. Inc.

The first stock investors may want to consider is Merck & Co. Inc. (

MRK, Financial), a Kenilworth, New Jersey-based global health care company.

The company saw its trailing 12-month revenue per share grow by 5.20% and its trailing 12-month earnings per share without non-recurring items grow by 40.11% over the past five years.

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

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The stock closed at $91.17 per share on Thursday for a market cap of approximately $230.55 billion and a price-earnings ratio of 16.31.

Merck & Co. Inc. pays quarterly dividends to its shareholders. It will distribute 69 cents per share on July 8, generating a forward dividend yield of 3.03% as of June 30.

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10 to the company.

Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and an average target price of $98.79 per share.

Medical Properties Trust Inc.

The second stock investors may want to consider is Medical Properties Trust Inc. (

MPW, Financial), a Birmingham, Alabama-based self-advising real estate investment trust that owns hospitals with 431 facilities and approximately 43,000 licensed beds in nine countries on four continents.

The company saw its trailing 12-month revenue per share grow by 4.60% and its trailing 12-month earnings per share without non-recurring items grow by 3.85% over the past five years.

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

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The stock closed at $15.27 per share on Thursday for a market cap of $9.16 billion and a price-earnings ratio of 8.17.

Medical Properties Trust Inc. pays quarterly dividends to its shareholders. It will distribute 29 cents per share on July 14, generating a forward dividend yield of 7.59% as of June 30.

GuruFocus assigned a score of 3 out of 10 to the company's financial strength and an 8 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 $21.79 per share.

Sanofi SA

The last stock investors may want to consider is Sanofi SA (

SNY, Financial), a French drug manufacturer.

The company saw its trailing 12-month revenue per share grow by 2.70% and its trailing 12-month earnings per share without non-recurring items grow by 14.82% over the past five years.

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

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The stock closed at $50.03 per share on Thursday for a market cap of $124.94 billion and a price-earnings ratio of 19.46.

Sanofi SA pays annual dividends to its shareholders. On May 31, the company distributed $1.747 per American Depositary Receipt (ADR) for a trailing 12-month dividend yield of 3.49% as of June 30.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and an 8 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 $60.92 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
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