The following stocks have outperformed the S&P 500 Index over the past several years. The benchmark for the U.S. stock market increased 2.4% over the past month, 14.9% so far this year, 3.8% over the last year and 39% over the past three years.
What’s more, these stocks have a price-earnings ratio of less than 15, a price-book ratio of less than 1 and a price-sales ratio lower than 1.5, increasing the likelihood of finding a security that is undervalued by the market.
The Long Beach, California-based health care plans company was trading around $147.91 per share at close on Wednesday for a market capitalization of $9.26 billion. The stock has a price-earnings ratio of 12.40 versus the industry median of 19.79 and a price-sales ratio of 0.54 compared to the industry median of 0.73.
Molina Healthcare doesn’t pay a dividend.
The Peter Lynch chart suggests the stock is undervalued.
Wall Street issued an overweight recommendation rating for shares of Molina Healthcare with an average target price of $161.29, which represents 9% upside from the closing price on Wednesday. The overweight recommendation rating means the stock is expected to continue outperforming the market over the next 12 months.
GuruFocus assigned a financial strength rating of 7 out of 10 and a profitability and growth rating of 6 out of 10.
Shares of the Baltimore-based debt investment company closed at $34.50 on Wednesday for a market capitalization of $203.01 million. The company acquires debt issued by renewable energy infrastructure and real estate companies. The stock has a price-earnings ratio of 4.78 versus an industry median of 12.36 and a price-book ratio of 0.93 compared to the industry median of 1.11.
MMA Capital doesn’t pay a dividend.
The Peter Lynch chart suggests the stock is cheap.
Additionally, GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability and growth rating of 3 out of 10.
Disclosure: I have no positions in any securities mentioned.
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