- By Alberto Abaterusso
Value investors may want to consider the three stocks that are listed in this article, in my opinion, as they meet the below criteria:
These stocks do not seem expensive as their price-earnings ratios are at or below 20.
They have a history of earnings and sales growth. Earnings per share and revenue per share have advanced over the past five years, while no losses were recorded in the years in question.
These stocks have positive recommendation ratings from Wall Street sell-side analysts.
Stock Yards Bancorp Inc
The first stock to consider is Stock Yards Bancorp Inc (NASDAQ:SYBT), a Louisville, Kentucky-based company that is a holding company for Stock Yards Bank & Trust Company, a regional bank operating branches in Louisville, Indianapolis and Cincinnati.
The company saw its trailing 12-month revenue per share increase by 6.6% and its trailing 12-month earnings per share (EPS) without non-recurring items (NRI) increase by 12.5% over the past five years.
The price-earnings ratio (15.28 as of Monday) went up over the period in question, but only slightly.
The stock traded at around $38.81 per share at close on Monday for a market cap of $880.68 million and a dividend yield of 2.78%.
GuruFocus assigned a financial strength rating of 3 out of 10 and a profitability rating of 5 out of 10 to the company.
Wall Street sell-side analysts recommend a hold rating for this stock and have established an average target price of $41.33 per share.
Electromed Inc
The second stock to consider is Electromed Inc (ELMD), a New Prague, Minnesota-based developer and manufacturer of medical devices for airway clearance therapies to treat patients with high frequency chest wall oscillations.
The company saw its trailing 12-month revenue per share increase by 9.1% and its trailing 12-month EPS without NRI increase by 17.8% every year over the past five years.
The price-earnings ratio (17.06 as of Monday) has declined by 1.8% over the period in question.
The stock was trading at around $8.19 per share at close on Monday for a market cap of $70.44 million.
Electromed Inc does not pay dividends.
GuruFocus assigned a score of 10 out of 10 to the company's financial strength rating and of 7 out of 10 to its profitability rating.
On Wall Street, the stock has one recommendation rating of buy with a price target of $19 per share.
Electronic Arts
The third stock to consider is Electronic Arts Inc. (NASDAQ:EA), a Redwood City, California-based electronic gaming and multimedia company.
The company saw its trailing 12-month revenue per share increase by 6.4% and its trailing 12-month EPS without NRI increase by nearly 21% per year over the past five years.
The price-earnings ratio (17.75 as of Monday) has declined by 1.3% over the observed period.
The stock traded at around $119.81 per share at close on Monday for a market capitalization of $34.60 billion.
Electronic Arts Inc does not pay dividends.
GuruFocus assigned the company a rating of 8 out of 10 for both its financial strength and profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price of $155.67 per share.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.