17 Oversold High-Yields To Consider

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Aug 22, 2012
Oversold High-Yields With Growing Earning Per Share Researched By “long-term-investments.blogspot.com”. Stocks with a massive amount of sellers could fall very deep in a short period of time. Sometimes, the market overreacts and companies are traded at very low prices.

I screened the capital market by high-yields with positive earnings per share growth and signals to be oversold. A good indicator to measure the degree of oversold is the relative strength index (RSI). The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70. If the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.

I listed all stocks with a RSI of less than 40. In order to exclude the risks of low capitalized companies, I decided to screen only such stocks with a market capitalization above USD 300 million. Seventeen companies remained of which seven have a double-digit yield and six a buy or better recommendation.

Here are my favorite stocks:

Energy Transfer Partners (ETP) has a market capitalization of $10.51 billion. The company employs 1,946 people, generates revenue of $6,850.44 million and has a net income of $697.16 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,669.77 million. The EBITDA margin is 24.37 percent (operating margin 18.09 percent and net profit margin 10.18 percent).

Financial Analysis: The total debt represents 50.34 percent of the company’s assets and the total debt in relation to the equity amounts to 136.54 percent. Due to the financial situation, a return on equity of 4.53 percent was realized. Twelve trailing months earnings per share reached a value of $4.58. Last fiscal year, the company paid $3.58 in form of dividends to shareholders. Earnings are expected to grow 16.13 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.34, P/S ratio 1.53 and P/B ratio 1.74. Dividend Yield: 8.34 percent. The beta ratio is 0.66. The company's RSI amounts to 39.69.

Buckeye Partners (BPL) has a market capitalization of $4.97 billion. The company employs 1,029 people, generates revenue of $4,759.61 million and has a net income of $114.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $307.77 million. The EBITDA margin is 6.47 percent (operating margin 3.97 percent and net profit margin 2.41 percent).

Financial Analysis: The total debt represents 47.48 percent of the company’s assets and the total debt in relation to the equity amounts to 114.83 percent. Due to the financial situation, a return on equity of 5.87 percent was realized. Twelve trailing months earnings per share reached a value of $0.56. Last fiscal year, the company paid $4.02 in form of dividends to shareholders. Earnings are expected to grow 6.44 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 91.24, P/S ratio 1.06 and P/B ratio 2.08. Dividend Yield: 8.08 percent. The beta ratio is 0.32. The company's RSI amounts to 38.76.

Strayer Education (STRA) has a market capitalization of $826.57 million. The company employs 2,140 people, generates revenue of $627.43 million and has a net income of $106.04 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $200.67 million. The EBITDA margin is 31.98 percent (operating margin 28.55 percent and net profit margin 16.90 percent).

Financial Analysis: The total debt represents 50.84 percent of the company’s assets and the total debt in relation to the equity amounts to 277.82 percent. Due to the financial situation, a return on equity of 97.16 percent was realized. Twelve trailing months earnings per share reached a value of $7.43. Last fiscal year, the company paid $4.00 in form of dividends to shareholders. Earnings are expected to grow 3.89 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.36, P/S ratio 1.32 and P/B ratio 19.52. Dividend Yield: 5.71 percent. The beta ratio is 0.73. The company's RSI amounts to 29.74.

LTC Properties (LTC) has a market capitalization of $1.01 billion. The company employs 17 people, generates revenue of $85.16 million and has a net income of $49.67 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $75.59 million. The EBITDA margin is 88.77 percent (operating margin 58.33 percent and net profit margin 58.33 percent).

Financial Analysis: The total debt represents 24.60 percent of the company’s assets and the total debt in relation to the equity amounts to 34.11 percent. Due to the financial situation, a return on equity of 10.59 percent was realized. Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, the company paid $1.68 in form of dividends to shareholders. Earnings are expected to grow 6.25 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.12, P/S ratio 12.08 and P/B ratio 2.39. Dividend Yield: 5.50 percent. The beta ratio is 0.84. The company's RSI amounts to 29.03.

Take a closer look at the full table of oversold high-yields with growing earnings per share. The average price to earnings ratio (P/E ratio) amounts to 27.30 and forward P/E ratio is 12.73. The dividend yield has a value of 10.18 percent. Price to book ratio is 2.58 and price to sales ratio 2.29. The operating margin amounts to 16.95 percent and the beta ratio is 0.96. The average stock has a RSI of 34.28.

Related stock ticker symbols:

TEU, OIBR, BGCP, CWH, RNDY, SDT, STON, NTLS, SPH, CMRE, CMLP, ETP, BPL, GFIG, SNH, STRA, LTC

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