If you are screening the market for bargain opportunities among U.S.-listed equities, then you may want to consider the following stocks, since they meet the criteria listed below:
- A price-earnings ratio of less than 20.
- A lower enterprise value-to-Ebitda ratio versus the historical mean of the S&P 500 over the past seven years (which is 10.54 currently).
- Robust dividend growth exceeding the S&P 500, which saw its dividends per share increase at a compound annual rate of about 1.4% over the past three years through Sept. 30.
Companhia De Saneamento Basico Do Estado De Sao Pa
The first stock that makes the cut is Companhia De Saneamento Basico Do Estado De Sao Pa (SBS, Financial), a Brazilian provider of treated water, sanitation and liquid waste services.
The stock was trading at $6.95 per share at close on Friday for a market cap of $4.75 billion, a price-earnings ratio of 10.26 (versus the industry median of 17.03) and an enterprise value-to-Ebitda ratio of 8.94 (versus the industry median of 9.64).
GuruFocus assigned a score of 4 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.
Companhia De Saneamento Basico's annual dividend per share for 2021 was $0.08. The trailing 12-month dividend has increased by 4.50% every year over the past three years versus the industry median of 5.05%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $10.31 per share.
Autohome Inc
The second stock that qualifies is Autohome Inc (ATHM, Financial), a Chinese operator of websites that provide information to automobile consumers in the People's Republic of China.
The stock was trading at $32.55 per share at close on Friday for a market cap of $4.07 billion, a price-earnings ratio of 8.55 (versus the industry median of 24.24) and an enterprise value-to-Ebitda ratio of 4.56 (versus the industry median of 15.14).
GuruFocus assigned a score of 9 out of 10 to both the company's financial strength rating and its profitability rating.
On March 5, Autohome paid an annual dividend per share of $0.87. The trailing 12-month dividend has increased by 3.50% every year over the past three years, versus the industry median of 1.5%.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of approximately $46 per share.
Kulicke & Soffa Industries Inc
The third stock that makes the cut is Kulicke & Soffa Industries Inc (KLIC, Financial), a Singapore-based designer, manufacturer and seller of capital equipment and tools to semiconductor devices assemblers.
The stock closed at $66.41 per share on Friday for a market cap of $4.15 billion, a price-earnings ratio of 11.47 (versus the industry median of 25.25) and an enterprise value-to-Ebitda ratio of 7.94 (versus the industry median of 15.13).
GuruFocus assigned a score of 8 out of 10 to both the company's financial strength and its profitability.
Kulicke & Soffa's quarterly dividend paid was $0.17 per share on Oct. 12. The trailing 12-month dividend has increased by 32.60% every year over the past three years, versus the industry median of 3.2%.
On Wall Street, the stock has a median recommendation rating of buy and an average target price of $83.80 per share.
PotlatchDeltic Corp
The fourth stock that makes the cut is PotlatchDeltic Corp (PCH, Financial), a Spokane, Washington-based real estate investment trust owning nearly 2 million acres of timberlands across Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi.
The stock closed at $61.05 per share on Friday for a market cap of $4.10 billion, a price-earnings ratio of 8.53 (versus the industry median of 17.88) and an enterprise value-to-Ebitda ratio of 6.11 (versus the industry median of 20.05).
GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
On Sept. 30, PotlatchDeltic Corp's quarterly dividend per share paid was $0.41. The trailing 12-month dividend has increased by 1.8% every year over the past three years, versus the industry median of -2.3%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $63.67 per share.
