As the stock market has made a strong recovery so far this year, investors may be looking for undervalued stocks that are on the rise. This discussion looks at four companies that have solid moving averages and are trading at a discount. These companies also pay dividends.
Amkor Technology
First up is Amkor Technology Inc. (AMKR, Financial), a Nasdaq-traded semiconductor equipment maker headquartered in Tempe, Arizona. The company’s earnings this year are up by 18.90%. Earnings per share growth over the past five years has increased at a 27.40% rate. It has a market capitalization of $6.82 billion.
The price-earnings ratio is relatively low for a tech stock at 11.90. For comparison’s sake, the earnings multiple for Nvidia (NVDA, Financial) sits at 120 with a market cap of $1.2 trillion. Amkor trades at 1.84 times its book value and at a price-sales ratio of exactly 1. The tech company pays a 1.06% dividend.
Here is the daily price chart showing the basic uptrend:
Avnet
Next up is Avnet Inc. (AVT, Financial), which distributes computers and related electronics with global operations from its headquarters in Phoenix, Arizona. Earnings over the past five years have shown growth of 50%. This year, earnings per share are up by 19%. Shareholder equity exceeds long-term debt and the current ratio of 2.50 is good.
The stock can be purchased at a 2% discount from its book value. That is with a price-earnings ratio of just 6.14 and a forward earnings multiple of 7.63. It is relatively lightly traded with an average daily volume of 659,000 shares. Avnet pays investors a dividend of 2.29%.
Toyota Motor
Toyota Motor Corp. (TM, Financial) is one of the best-known name brands in the global automotive industry. The company, which is based in Japan, trades on the New York Stock Exchange with a market capitalization of $276 billion. Earnings over the past five years are up by only 1.5% and this year’s earnings per share are down by 12.50%. The price-sales ratio is a mere 1.03.
The stock is trading with a price-earnings ratio of 11 and at 1.09 times its book value. The total amount of debt on its books just slightly exceeds shareholder equity. For an NYSE-listed security, it is lightly traded with an average daily volume of 310,000 shares. Toyota pays a 2.53% dividend.
Toll Brothers
Finally, Toll Brothers Inc. (TOL, Financial) is a residential construction company specializing in luxury homes. In business since 1967, the company is headquartered in Fort Washington, Pennsylvania. This year’s earnings are up by 64% and up over the past five years by 28%. The market capitalization is $9.04 billion.
The stock’s price-earnings ratio is 5.89 and it now trades at 1.42 times its book value. The price-sales ratio is 0.85 and the price-to-free cash flow ratio comes in at 10.80. Toll Brothers is actively traded on the NYSE with an average daily volume of 1.70 million shares. Investors receive a dividend of 1.03%.
Disclosure: This is not investment advice; for educational purposes only.
