4 Stocks With Solid Records of Sales and Earnings Growth

These companies could be potential value opportunities

Summary
  • KeyCorp, Enterprise Products Partners, CF Industries and Synchrony Financial 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.
  • Sell-side analysts are positive about these companies.
Article's Main Image

Investors may want to consider the following stocks since they meet these 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. The stocks have positive recommendation ratings among sell-side analysts on Wall Street.

KeyCorp

The first stock investors may want to consider is KeyCorp (KEY, Financial), the Cleveland, Ohio-based parent company of KeyBank, which is a regional provider of banking services. At the end of 2021, it operated through about 999 branches and 1,317 ATMs in 15 states.

The company saw its trailing 12-month revenue per share grow by 7.30% and its trailing 12-month earnings per share grow by 14.86% over the past five years.

The company has not reported a loss in that same period.

1562892093721001984.png

The stock closed at $18.75 per share on Wednesday for a market cap of approximately $18 billion and a price-earnings ratio of 8.47.

KeyCorp pays quarterly dividends to its shareholders. It will distribute 19.5 cents per share on Sept. 15, generating a forward dividend yield of 4.03% as of Aug. 24.

GuruFocus assigned a financial strength rating of 3 out of 10 and a profitability rating of 6 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 $21.50 per share.

Enterprise Products Partners

The second stock investors may want to consider is Enterprise Products Partners LP (EPD, Financial), a Houston-based oil and gas midstream operator.

The company saw its trailing 12-month revenue per share grow by 6.50% and its trailing 12-month earnings per share grow by 8.96% over the past five years.

The company did not report a loss over that same period.

1562892097755922432.png

The stock closed at $27.07 per share on Wednesday for a market cap of $59.3 billion and a price-earnings ratio of 12.25.

Enterprise Products Partners pays quarterly dividends to its shareholders. It distributed 47.5 cents per share on Aug. 12, generating a forward dividend yield of 6.97% as of Aug. 24.

GuruFocus assigned a score of 4 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 buy for the stock and an average target price of $31.57 per share.

CF Industries

The third stock investors may want to consider is CF Industries Holdings Inc. (CF, Financial), a Deerfield, Illinois-based provider of hydrogen and nitrogen products used in power, fertilizer, emission control and other industrial activities worldwide.

The company saw its trailing 12-month revenue per share grow by 10.80% and its trailing 12-month earnings per share grow by 24.88% over the past five years.

The company has not reported a loss in that time.

1562892100780015616.png

The stock closed at $112.50 per share on Wednesday for a market cap of $24.11 billion and a price-earnings ratio of 9.93.

CF Industries Holdings pays annual dividends to its shareholders. On Aug. 31, the company will distribute 40 cents per common share for a forward dividend yield of 1.32% as of Aug. 24.

GuruFocus assigned a score of 7 out of 10 to the company's financial strength and an 9 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 $110.72 per share.

Synchrony Financial

The last stock investors may want to consider is Synchrony Financial (SYF, Financial), a Stamford, Connecticut-based credit services company focused on financial products and services for U.S. consumers.

The company saw its trailing 12-month revenue per share grow by 9.40% and its trailing 12-month earnings per share grow by 16% over the past five years.

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

1562892103481147392.png

The stock closed at $34.33 per share on Wednesday for a market cap of $24.11 billion and a price-earnings ratio of 9.93.

Synchrony Financial pays annual dividends to its shareholders. On Aug. 11, the company distributed 23 cents per common share for a forward dividend yield of 2.59% as of Aug. 24.

GuruFocus assigned a score of 4 out of 10 to the company's financial strength and a 6 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 $41.79 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