A Trio of Stocks that Represent Potential Bargains

- By Alberto Abaterusso

As of May 28, the following stocks seem to be underestimated by the market, as their price-earnings ratios without non-recurring items stand below 20 while their price-earnings to growth ratios stand near or below 1.

Furthermore, Wall Street sell-side analysts have issued positive recommendation ratings for them, which indicates that they expect higher share prices over the months ahead.


M.D.C. Holdings Inc

The first company that matches the criteria is M.D.C. Holdings Inc (NYSE:MDC), a Denver, Colorado-based homebuilding company with operations in the United States. The company also offers originating mortgage loans, insurance coverage and re-insurance on the claims products as well as casualty insurance products.

As of May 28, the price-earnings ratio without NRI is 9.21, which is more appealing than the industry median of 13.76, while the PEG ratio of 0.3 is more appealing than the industry median of 0.85.

The stock had net earnings of $6.29 per diluted share for the trailing 12 months that ended in March 2021 and a five-year Ebitda growth rate of 30.30%.

On May 28, the closing price was $57.95 per share. The share price has increased by 84.08% over the past year for a market capitalization of $4.07 billion and a 52-week range of $29.04 to $63.86.

A Trio of Stocks that Represent Potential Bargains
A Trio of Stocks that Represent Potential Bargains

As of May, Wall Street sell-side analysts recommend a median rating of overweight and an average target price of $70.67 per share for the stock.

Camping World Holdings Inc

The second company that matches the criteria is Camping World Holdings Inc (NYSE:CWH), a Lincolnshire, Illinois-based retailer of recreational vehicles in the U.S.

As of May 28, the price-earnings ratio without NRI is 9.4, which is more compelling than the industry median of 21.09, while the PEG ratio is 0.86, which has more appeal than the industry median of 2.37.

The stock had net earnings of $4.72 per diluted share for the trailing 12 months that ended in March 2021 and a five-year Ebitda growth rate of 10.90%.

The closing price on May 28 was $44.39 per share. The share price has increased by 92.08% over the past year, determining a market capitalization of $3.93 billion and a 52-week range of $20.05 to $48.50.

A Trio of Stocks that Represent Potential Bargains
A Trio of Stocks that Represent Potential Bargains

As of May, Wall Street sell-side analysts recommend a median rating of overweight for the stock and have established an average target price of $57.25 per share.

Atkore Inc

The third company that matches the criteria is Atkore Inc (NYSE:ATKR), a Harvey, Illinois-based manufacturer and distributor of electrical raceway and mechanical products and technical solutions in the U.S. and internationally.

As of May 28, the price-earnings ratio without NRI is 13.02, which is more compelling than the industry median of 25.2, while the PEG ratio of 0.38 is also more appealing than the industry median of 2.32.

The stock had net earnings of $5.93 per diluted share for the trailing 12 months that ended in March 2021 and a five-year Ebitda growth rate of 34.40%.

The closing price on May 28 was $77.2 per share. The share price has risen by 185.50% over the past year for a market capitalization of $3.63 billion and a 52-week range of $20.42 to $90.08.

A Trio of Stocks that Represent Potential Bargains
A Trio of Stocks that Represent Potential Bargains

As of May, Wall Street sell-side analysts recommend a median rating of overweight with an average target price of $91 per share for the stock.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.