U.S. Markets closed
  • S&P 500

    3,699.12
    +32.40 (+0.88%)
     
  • Dow 30

    30,218.26
    +248.74 (+0.83%)
     
  • Nasdaq

    12,464.23
    +87.05 (+0.70%)
     
  • Russell 2000

    1,892.45
    +43.75 (+2.37%)
     
  • Crude Oil

    46.09
    +0.45 (+0.99%)
     
  • Gold

    1,837.70
    +0.90 (+0.05%)
     
  • Silver

    24.22
    +0.13 (+0.55%)
     
  • EUR/USD

    1.2127
    -0.0022 (-0.1819%)
     
  • 10-Yr Bond

    0.9690
    +0.0490 (+5.33%)
     
  • Vix

    20.79
    -0.49 (-2.30%)
     
  • GBP/USD

    1.3438
    -0.0015 (-0.1088%)
     
  • USD/JPY

    104.1400
    +0.2800 (+0.2696%)
     
  • BTC-USD

    18,988.69
    +94.17 (+0.50%)
     
  • CMC Crypto 200

    365.19
    -14.05 (-3.71%)
     
  • FTSE 100

    6,550.23
    +59.96 (+0.92%)
     
  • Nikkei 225

    26,751.24
    -58.13 (-0.22%)
     

3 Stocks Shining as Unmissable Opportunities

GuruFocus.com
·4 min read

- By Alberto Abaterusso

When screening the market in search of opportunities, one method is to look for stocks whose trailing 12-month price-to-free-cash-flow ratios are low compared to that of the S&P 500 index, which stands at 11.67 as of the writing of this article. In my view, these stocks are more likely to be selling at a compelling price.

Thus, investors may want to have a look at the following three stocks, as they meet the above criteria.


Aerojet Rocketdyne Holdings Inc

The first stock investors may want to have a look at is Aerojet Rocketdyne Holdings Inc (NYSE:AJRD), an El Segundo, California-based manufacturer and seller of products and systems for U.S. aerospace and defense clients.

Aerojet Rocketdyne Holdings Inc's price-to-free-cash-flow ratio is about 10.2 as of Oct. 20, ranking higher than 63% of 138 companies operating in the aerospace and defense industry.

Aerojet Rocketdyne Holdings Inc's free cash flow for the trailing twelve months through the most recent quarter (which ended on June 29) was $3.71. It increased by an average of 13.5% per year over the past 10 years, by 22.8% per year over the past five years and by 32.4% over the past year.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

Following a nearly 17% decrease which happened over the past year, the stock price closed at $37.77 per share on Tuesday for a market capitalization of $2.97 billion and a 52-week range of $34.01 to $57.27.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

Currently, Aerojet Rocketdyne Holdings Inc is not paying dividends to its shareholders.

GuruFocus assigned a score of 6 out of 10 to the financial strength rating and of 5 out of 10 to the profitability rating of the company.

Wall Street recommends an overweight recommendation rating with an average target price of $52.32 per share for the stock.

Interactive Brokers Group Inc

The second stock investors should have a look at is Interactive Brokers Group Inc (NASDAQ:IBKR), a Greenwich, Connecticut-based automated electronic broker for global capital markets operators.

Interactive Brokers Group Inc's price-to-free-cash-flow ratio is about 4.9 as of Oct. 20, ranking higher than 62% of 353 companies operating in the capital markets industry.

Interactive Brokers Group Inc's free cash flow for the trailing twelve months through the most recent quarter (which ended on June 29) was $10.16. It increased by 19.8% per year over the past 10 years, by 49.4% per year over the past five years and by 11.3% over the past year.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

As a result of an 8.5% increase over the past year, the stock price closed at $49.80 per share on Tuesday for a market capitalization of $20.75 billion and a 52-week range of $33.70 to $58.50.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

Currently, Interactive Brokers Group Inc is paying a quarterly cash dividend of 10 cents per common share, with the last payment made on Sept. 14, giving a forward dividend yield of 0.8% as of Oct. 20.

GuruFocus assigned a score of 5 out of 10 to both the company's financial strength rating and its profitability rating.

Wall Street recommends a hold recommendation rating with an average target price of $54.33 per share for the stock.

Euronet Worldwide Inc

The third stock investors may want to have a look at is Euronet Worldwide Inc (NASDAQ:EEFT), a Leawood, Kansas-based provider of payment processing solutions.

Euronet Worldwide Inc's price-to-free-cash-flow ratio is 10.14 as of Oct. 20, ranking higher than 78% of 1,266 companies operating in the software industry.

Euronet Worldwide Inc's free cash flow for the trailing twelve months through the most recent quarter (which ended on June 29) was $9.35. It increased by 18.6% per year over the past 10 years, by 16.6% per year over the past five years and by 98.2% over the past year.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

After a 34.1% decrease which occurred over the past year, the stock price closed at $94.79 per share on Tuesday for a market capitalization of $4.96 billion and a 52-week range of $61.27 to $167.64.

3 Stocks Shining as Unmissable Opportunities
3 Stocks Shining as Unmissable Opportunities

Currently, Euronet Worldwide Inc does not pay dividends to its shareholders.

GuruFocus assigned a score of 6 out of 10 to the financial strength rating and of 9 out of 10 to the profitability rating of the company.

Wall Street recommends a buy recommendation rating with an average target price of $123.11 per share for the stock.

Disclosure: I have no position in any security mentioned.

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.