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A Trio of Picks for the Value Investor

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·3 min read
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Value investors may want to consider the following trio of stock picks, as they represent companies that possess the following characteristics:

  1. A price-earnings ratio that stands below 20.

  2. A consistent history of earnings and sales generation, having grown both over the past five years with no net losses.

  3. Optimistic recommendation ratings from Wall Street sell-side analysts.




3M Co

The first stock that meets the criteria is 3M Co (NYSE:MMM).

The Saint Paul, Minnesota-based international conglomerate saw its trailing 12-month revenue per share grow by 3.3% per annum and its earnings per share without non-recurring items grow by 1.9% per annum over the past five years. The price-earnings ratio (17.78 as of Thursday ) declined 0.9% over the period in question.

The stock was trading at a price of $151.45 per share at close on Thursday for a market capitalization of $87.11 billion and a 52-week range of $114.04 to $219.75.

GuruFocus assigned the company a positive financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.

Wall Street sell-side analysts have recommended a hold rating and set an average target price of $161.88 per share.

Westamerica Bancorp

The second stock that qualifies is Westamerica Bancorp (NASDAQ:WABC), a San Rafael, California-based regional bank.

The company saw its trailing 12-month revenue per share grow by 1.1% per annum and its trailing 12-month EPS without NRI grow 4.4% per annum over the past five years. The price-earnings ratio (18.47 as of Thursday) declined by 1.4% over the observed period.

The stock was trading at a price of $53.18 per share at close on Thursday for a market capitalization of $1.43 billion and a 52-week range of $46.94 to $69.08.

GuruFocus assigned a moderate rating of 4 out of 10 to both the company's financial strength and its profitability.

Wall Street sell-side analysts have recommended an overweight rating for the stock and established an average target price of $62.33 per share.

United-Guardian Inc

The third stock that makes the cut is United-Guardian Inc (NASDAQ:UG), a Hauppauge, New York-based manufacturer and marketer of household and personal products in the U.S. and internationally.

The company saw its trailing 12-month revenue per share grow by 0.3% per annum and its trailing 12-month EPS without NRI grow by 3.2% per annum over the past five years. The price-earnings ratio (15.32 as of Thursday) fell by 1.6% over the observed years.

The stock was trading at a price of $14.55 per share at close on Thursday for a market capitalization of $66.17 million and a 52-week range of $10.65 to $20.89.

GuruFocus assigned the company the highest financial strength rating of 10 out of 10 and a high profitability rating of 8 out of 10.

Wall Street sell-side analysts have recommended a buy rating for this stock.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.