Here's another "Reasonable Value" screen run against Tuesday's Trend Leaders list. For those of you who have not see one of my previous "Reasonable Value" posts, here are the criteria for the screen:
- PE between 0 and16
- PEG between 0 and 1.2
- Price-to-Sales less than 2
- Debt-to-Equity less than 1
- EV to EBITDA less than 10
|Name||Industry||Last Price||PE||PEG||Price To Sales||Price To Book||Debt To Equity||Cash On Hand||Divi- |
|EV to EBITDA|
|CACI||CACI Int'l, Inc.||EDP Services||$47.62||13.12||0.98||0.47||1.27||0.4666||174.7M||0||7.4|
|DOV||Dover Corp.||Industrial Machinery/ |
|TSTC||Telestone Tech- |
|VSEC||VSE Corp.||Military/ |
|ARW||Arrow Electronics, Inc.||Electronic Components||$25.40||16.3||0.43||0.19||1.01||0.4316||576.7M||0||6.93|
|POWL||Powell Industries, Inc.||Electrical Products||$33.01||9.11||1.01||0.63||1.44||0.075||113.6M||0||3.63|
|GIII||G-III Apparel Group, LTD.||Apparel||$25.48||12.45||0.64||0.58||2.1||0||17.8M||0||6.73|
|JACK||Jack In The Box Inc.||Restaurants||$20.89||11.6||0.81||0.49||2.14||0.6549||105M||0||5.85|
|CORE||Core-Mark Holding Company, Inc.||Food Distributors||$30.10||13.27||0.73||0.06||0.97||0.0021||91M||0||4.62|
|UNH||United Health Group Inc.||Medical Specialities||$32.42||8.19||0.91||0.38||1.39||0.3237||11B||0.5||4.35|
|MFB||Maidenform Brands, Inc.||Department/ |
Specialty Retail Stores
|FDO||Family Dollar Stores, Inc.||Department/ |
Specialty Retail Stores
|FCX||Freeport-McMoran Copper & Gold, Inc.||Precious Metals||$74.03||9.42||0.73||1.96||3.16||0.4447||3,042M||1.2||4.35|
|AMP||Ameriprise Financial Services, Inc.||Investment Managers||$42.82||13.58||0.85||1.31||1.09||0.7601||4.4B||0.72||8.3|
|ALV||Autoliv, Inc.||Auto Parts: O.E.M.||$57.78||14.29||0.25||0.78||1.94||0.2708||459.4M||1.2||5.23|
Valuation measures listed in the table above show all of these stocks to be at reasonable levels. Data not included in the chart above, however, shows that two companies in particular are also showing impressive growth.
Arrow Electronics (ARW) has steadily improving financials as shown in the chart below:
Revenue, earnings and margins are all up sequentially as well as year-over-year for this distributor of electronic components and systems.
Our other growth candidate is Ameriprise Financial (AMP). I normally am not too fond of financial companies as the sector overall has been the worst performing in our Earnings Scorecard analysis. This company, however, has managed to perform reasonably well while staying far enough under the radar to maintain its value characteristics.
Here, in the chart above, we can see that the most recent sequential quarterly results were quite good on both top line and bottom line.
So why buy on a pullback?
All of these stocks have been on a tear lately, hence their inclusion on our Trend Leaders list. Our experience is that most stocks stay on the list for a week or two and then drop off. These pullbacks are often good buying opportunities as the best stocks show up on the Trend Leaders list again shortly after. For example, UnitedHealth and Family Dollar are both repeat members of the Trend Leaders.
So browse through the table above and pick a few of these stocks for your watch list. Their value characteristics should help limit any downside and their momentum characteristics should eventually yield some good price gains.
Disclosure: no positions in any of the stocks mentioned in this post