EC The 10 Best Stocks For Value Investors This Week – 6/20/15

From a valuation side of things, the company has grown its EPSmg (normalized earnings) from $2.16 in 2011 to an estimated $4.04 for 2015. This level of demonstrated growth is in line with the market’s implied estimate for earnings growth of 9.07% over the next 7-10 years.

The company’s recent earnings history shows an average annual growth in EPSmg of around 17.38%. The ModernGraham valuation model reduces such a rate to a more conservative figure, assuming some slowdown will occur, but still returns an estimate of intrinsic value falling within a margin of safety relative to the current price, indicating Moody’s Corporation is fairly valued at the present time. (See the full valuation)

NetApp Inc. (NTAP)

126px-Netapp_logo.svgNetApp Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the short dividend history, and the high PEmg and PB ratios.  The Enterprising Investor has no initial concerns.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the evaluation.  As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $1.09 in 2011 to an estimated $1.67 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 5.86% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.  (See the full valuation)

Xcel Energy (XEL)

Xcel_EnergyXcel Energy qualifies for both the Defensive Investor and the Enterprising Investor.  The Defensive Investor is only concerned with the low current ratio, and the Enterprising Investor is willing to overlook concerns about the level of debt because the company passed the more conservative Defensive Investor requirements.  As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the evaluation.  As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $1.59 in 2011 to an estimated $1.95 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 4.06% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price. (See the full valuation)

1 2 3 4
View single page >> |

Disclaimer: The author did not hold a position in any of the companies listed in this article ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Investment Hunting 4 years ago Contributor's comment

Fantastic list of companies here. I am happy to say I won a few :-)