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 0.50% over the past three years through Dec. 31.
Energy Company of Minas Gerais
The first stock that qualifies is Energy Company of Minas Gerais (CIG, Financial), a generator and distributor of electricity in Brazil.
The stock was trading at $2.35 per share at close on Friday for a market cap of $3.98 billion, a price-earnings ratio of 8.01 (versus the industry median of 16.67) and an enterprise value-to-Ebitda ratio of 5.32 (versus the industry median of 9.71).
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
Energy Company of Minas Gerais’s three-year dividend growth rate is 75.2% versus the industry median of 5.20%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $2.78 per share.
Nu Skin Enterprises Inc.
The second stock that makes the cut is Nu Skin Enterprises Inc. (NUS, Financial), a Provo, Utah-based developer and distributor of skincare products, various nutritional supplements and weight management products.
The stock closed at $54.26 per share on Friday for a market cap of $2.70 billion, a price-earnings ratio of 12.25 (versus the industry median of 18.78) and an enterprise value-to-Ebitda ratio of 7.62 (versus the industry median of 11.19).
GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 8 out of 10 to its profitability.
Nu Skin Enterprises Inc.’s three-year dividend growth rate is 1.40% versus the industry median of -0.80%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $54.60 per share.
Winnebago Industries Inc.
The third stock that makes the cut is Winnebago Industries Inc. (WGO, Financial), a Forest City, Iowa-based manufacturer and seller of recreational vehicles and marine products in North America.
The stock closed at $75.62 per share on Friday for a market cap of $2.52 billion, a price-earnings ratio of 8.01 (versus the industry median of 17.57) and an enterprise value-to-Ebitda ratio of 5.72 (versus the industry median of 9.71).
GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 9 out of 10 to its profitability.
Winnebago Industries Inc.’s three-year dividend growth rate is 6.30% versus the industry median of -15.70%.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $91.50 per share.
