This Trio of Growth Stocks May Present Value Opportunities
Investors looking for growth opportunities may want to have a look at the following stocks, as their price-earnings ratios are below 20 while they have grown their earnings per share significantly over the past year.
Coca-Cola Co
The first stock to have a look at is Coca-Cola Co (NYSE:KO).
The American beverage giant saw its trailing 12-month earnings per diluted share grow by nearly 48% over the past year to $2.32 as of the quarter ended March 27, 2020, up from $1.57 in the prior-year quarter. The price-earnings ratio stands at 18.84 as of May 14.
As a result of a 12% drop over the past year, the stock price traded at $43.70 per share at close on Thursday for a market capitalization of $187.69 billion and a 52-week range of $36.27 to $60.13.
Currently, Coca-Cola pays a 41 cents quarterly cash dividend per common share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a very positive rating of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating with an average target share price of $52 for this stock.
Humana Inc
The second stock to have a look at is Humana Inc (NYSE:HUM).
The Louisville, Kentucky-based healthcare plans company saw its trailing 12-month diluted EPS grow by 52.4% over the past year to $19.48 as of the quarter ended March 31, 2020, up from $12.78 as of the prior-year quarter. The price-earnings ratio is 19.81 as of May 14.
Following a 59.3% rise over the past year, the stock price traded at $385.81 per share at close on Thursday for a market capitalization of $51.01 billion and a 52-week range of $208.25 to $393.65.
Currently, the company pays a quarterly cash dividend of 62.5 cents per common share.
GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a very positive rating of 7 out of 10 for its profitability.
Wall Street sell-side analysts recommend an overweight rating with an average target share price of $424.14 for this stock.
Arcosa Inc
The third stock to have a look at is Arcosa Inc (NYSE:ACA), a Dallas-based provider of infrastructure-related solutions to the North American construction, energy and transportation industries.
The company saw its trailing 12-month diluted EPS grow by 46% over the past year to $2.41 as of the first quarter of 2020, up from $1.65 as of the prior-year quarter. The price-earnings ratio stands at 13.41 as of May 14.
Following an 11.3% fall over the past year, the stock price traded at $32.18 per share at close on Thursday for a market capitalization of $1.55 billion and a 52-week range of $28.14 to $47.85.
The company currently pays a quarterly cash dividend of 5 cents per common share.
GuruFocus assigned a very good rating of 7 out of 10 for the company's financial strength and a moderate rating of 4 out of 10 for its profitability.
Wall Street sell-side analysts recommend a buy rating with an average target share price of $48 for this stock.
Disclosure: I have no position in any securities mentioned in this article.
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This article first appeared on GuruFocus.
