5 Companies For Enterprising Investors Near 52 Week Lows

At the time of valuation, further research into Stella-Jones Inc revealed the company was trading above its Graham Number of $28.79. The company pays a dividend of $0.44 per share, for a yield of 1% Its PEmg (price over earnings per share – ModernGraham) was 20.27, which was below the industry average of 24.98, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $3.39. (See the full valuation)

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Central Pacific Financial Corp. (CPF)

Central Pacific Financial Corp. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $-9.3 in 2014 to an estimated $1.54 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 4.8% 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 above the price.

At the time of valuation, further research into Central Pacific Financial Corp. revealed the company was trading above its Graham Number of $26.4. The company pays a dividend of $0.7 per share, for a yield of 2.5%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 18.1, which was below the industry average of 19.62, which by some methods of valuation makes it one of the most undervalued stocks in its industry. (See the full valuation)

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Disclaimer: The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 ...

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