When screening the market for value opportunities, investors may want to consider stocks that represent companies with high profitability and robust financial conditions. The companies below meet these criteria, as they have GuruFocus profitability and financial strength ratings of at least 6 out of 10. Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks.
Alphabet Inc.
The first stock that makes the cut is Alphabet Inc. (GOOG, Financial)(GOOGL, Financial) a Mountain View, California-based tech conglomerate.
GuruFocus rated its financial strength 9 out of 10, driven by a return on invested capital of 36.26% versus a weighted average cost of capital of 9.76% and an Altman Z-Score of 11.49, indicating solid financial conditions.
GuruFocus rated its profitability 9 out of 10, driven by a return on capital (ROC) of 82.14% versus the industry median of 10.82%.
The share price ($114.62 as of July 19) has declined 13.54% over the past year for a market capitalization of $1.49 trillion, a price-earnings ratio of 20.45 and a price-book ratio of 5.86.
The price-sales ratio is 5.63 and the 52-week range is $102.20 to $152.10.
On Wall Street, the stock has a median recommendation rating of buy with an average target price of $152.95 per share.
Vertex Pharmaceuticals Inc.
The second stock that qualifies is Vertex Pharmaceuticals Inc. (VRTX, Financial), a Boston, Massachusetts-based biotech company engaging in the development and commercialization of cystic fibrosis therapies.
GuruFocus rated its financial strength at 9 out of 10, driven by a return on invested capital of 62.21% versus a weighted average cost of capital of 4.66% and an Altman Z-Score of 15.51, indicating a robust financial situation.
GuruFocus rated its profitability 7 out of 10, driven by a return on capital (ROC) of 213.13% versus the industry median of -482.66%.
The share price ($289.60 as of July 19) was up 47.72% year-over-year for a market capitalization of $73.68 billion, a price-earnings ratio of 30.32 and a price-book ratio of 6.75.
The price-sales ratio is 9.38 and the 52-week range is $176.36 to $296.84.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $298.92 per share.
Edwards Lifesciences Corp
The third stock that qualifies is Edwards Lifesciences Corp. (EW, Financial), an Irvine, California-based manufacturer of medical devices.
GuruFocus rated its financial strength 9 out of 10, driven by a return on invested capital of 24.77% versus a weighted average cost of capital of 10.48% and an Altman Z-Score of 17.39, meaning that the balance sheet is in safe zones.
The company's profitability rating scored 10 out of 10, driven by a return on capital (ROC) of 75.95% versus the industry median of 0.38%.
The share price ($101.24 as of July 19) has dropped 4.08% over the past year for a market capitalization of $62.93 billion, a price-earnings ratio of 41.48 and a price-book ratio of 10.75.
The price-sales ratio is 11.92 and the 52-week range is $85.58 to $131.73.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $121.05 per share.
Monster Beverage Corp
The final stock that qualifies is Monster Beverage Corp. (MNST, Financial) a Corona, California-based developer and distributor of energy drinks and concentrates worldwide.
GuruFocus rated its financial strength at 10 out of 10, driven by a return on invested capital of 33.02% versus a weighted average cost of capital of 7.63% and an Altman Z-Score of 26.52, indicating the company is in safe zones.
GuruFocus rated its profitability at 10 out of 10, driven by a return on capital ratio of 186.86% (versus the industry median of 15.65%).
The share price ($96.26 as of July 19) was up 4.09% year-over-year for a market capitalization of $51.52 billion, a price-earnings ratio of 38.45 and a price-book ratio of 7.49.
The price-sales ratio is 8.97 and the 52-week range is $71.75 to $99.89.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $101.35 per share.
