3 Stocks Winking at Growth-Focused Investors
- By Alberto Abaterusso
Growth-focused investors may want to consider the following stocks since their price-earnings without non-recurring items ratios stand below 20 and their trailing 12-month earnings per share have grown significantly over the past year.
Eisai
The first company that qualifies is Eisai Co. Ltd. (ESALY), a Japanese drug manufacturer focusing on the development of treatments for Alzheimer's disease, dementia, insomnia and several neurological conditions. The company is also producing painkillers, anticancer therapies and treatments for gastrointestinal affections and autoimmune diseases.
The trailing 12-month net earnings increased by approximately 102% to 424.80 Japanese yen ($4.04) per diluted share as of the most recent quarter (which ended on June 30), up from 215.06 yen per diluted share as of the prior-year quarter.
The price-earnings without NRI ratio is 19.22 (versus the industry median of 24.43) as of Oct. 28.
Following a 6.8% increase over the past year, the stock closed at $79.82 per share on Wednesday for a market capitalization of $22.87 billion and a 52-week range of $49.13 to $92.54.
Eisai has been paying semi-annual dividends for almost 25 years. This year, the company paid the first semi-annual cash dividend of 74.3 cents per common share on June 1, for a forward dividend yield of 1.87% as of Oct. 28.
The company's financial strength and profitability were both rated 8 out of 10 by GuruFocus.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of $92.07 per share.
Mantech International
The second company that meets the criteria is Mantech International Corp. (NASDAQ:MANT), a Herndon, Virginia-based provider of technology solutions and services to the U.S. defense and intelligence community, as well as to federal civilian agencies worldwide.
The trailing 12-month net earnings increased by 28% to $3.15 per diluted share as of the second quarter, up from $2.46 per diluted share in the prior-year quarter.
The price-earnings without NRI ratio is 19.85 (versus the industry median of 30.42) as of Oct. 28.
Following an 11.7% decrease over the past year, the stock closed at $62.32 per share on Wednesday for a market capitalization of $2.51 billion and a 52-week range of $55.25 to $93.99.
Mantech International pays a quarterly dividend of 32 cents per share, with the last payment made on Sept. 25. It generates a trailing 12-month dividend yield of 1.97% and a forward dividend yield of 2.05% as of Oct. 28.
GuruFocus assigned a score of 7 out of 10 to both the company's financial strength and its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $82.43 per share.
Trilogy Metals
The third company that makes the cut is Trilogy Metals Inc. (TMQ), a Canadian miner that explores and develops base and precious metals mineral properties in Northwest Alaska.
The trailing 12-month net earnings were $1.07 per diluted share as of the third quarter (which ended on Aug. 30), reflecting a positive shift from a net loss of 20 cents per diluted share as of the same quarter of fiscal 2019.
The price-earnings without NRI ratio is 1.45 (versus the industry median of 18.38) as of Oct. 28.
Following a 22.5% decline over the past year, the stock was trading at $1.55 per share at close on Wednesday for a market capitalization of $223.05 million and a 52-week range of $1.03 to $2.74.
Trilogy Metals does not pay a dividend.
GuruFocus assigned a score of 6 out of 10 for the company's financial strength and a score of 1 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $2.80 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
