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This Trio of Growth Stocks Could Hold Value

GuruFocus.com
·4 mins read

Investors who are focusing on growth may want to have a look at the following companies, as their price-earnings ratios are below 20 and their earnings per share have grown substantially over the past year.

Marvell Technology Group Ltd

The first company that meets the above listed criteria is Marvell Technology Group Ltd (NASDAQ:MRVL), a Bermuda-based developer and seller of integrated circuits in the U.S. and internationally.


The company's trailing 12-month EPS grew to $2.24 as of the first quarter of 2020, up from a net loss of 62 cents in the same quarter of 2019.

The price-earnings ratio is 15.63 (versus the industry median of 24.91) as of July 2.

Following a 45% increase over the past year, the stock price was trading at $35.02 per share at close on Thursday for a market capitalization of $23.30 billion and a 52-week range of $16.45 to $36.92.

Marvell Technology Group Ltd is currently distributing quarterly dividends of 6 cents per share, with the next payment to be sent out to shareholders on July 29. The company has been distributing dividends for nearly eight years.

GuruFocus rated the financial strength of the company 5 out of 10 and the profitability 6 out of 10.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $35.48 per share.

STORE Capital Corp

The second company that qualifies is STORE Capital Corp (NYSE:STOR), a Scottsdale, Arizona-based real estate investment trust company.

The company's trailing 12-month EPS grew by 30% year-over-year to $1.30 as of the first quarter of 2020, up from $1 for the prior year quarter.

The price-earnings ratio is 18.19 (versus the industry median of 14.71) as of July 2.

As a result of a 31.5% decline over the past year, the stock price traded at $23.46 per share at close on Thursday for a market capitalization of $5.74 billion and a 52-week range of $13 to $40.96.

STORE Capital Corp has been paying dividends since January 2015. The company will pay a quarterly cash dividend of 35 cents per common share on July 15.

GuruFocus assigned a moderate score of 4 out of 10 to the company's financial strength and a positive score of 6 out of 10 to its profitability.

Wall Street sell-side analysts issued an overweight rating for this stock and have established an average target price of $26.46 per share.

Cheniere Energy Inc

The third company that makes the cut is Cheniere Energy Inc (LNG), a Houston, Texas-based liquefied natural gas midstream operator.

The company's trailing 12-month EPS grew by 102.6% over the past year to $3.14 as of the first quarter of 2020, up from $1.55 in the prior year quarter.

The price-earnings ratio is 15.84 (versus the industry median of 8.68) as of July 2.

Following a 29% decline over the past year, the stock price was trading at $48.80 per share at close on Thursday for a market capitalization of $12.30 billion and a 52-week range of $27.06 to $70.49.

Cheniere Energy Inc does not pay dividends.

GuruFocus assigned a low score of 3 out of 10 for the company's financial strength and a positive score of 5 out of 10 for its profitability.

Wall Street sell-side analysts issued a buy recommendation rating for this stock and have established an average target price of $64 per share.

Disclosure: I have no position in any securities mentioned in this article.

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This article first appeared on GuruFocus.