As individual investors can attest, finding the right stock at the right price can be a very difficult task. In order to make things easier for you, I have compiled a list of three stocks that are trading at inexpensive forward valuations compared to their industry averages. Let’s take a closer look at each to see if any are a good fit for your portfolio.
1. Exco Technologies Limited
Exco Technologies Limited (TSX: XTC) is one of the world’s leading manufacturers of dies, moulds, equipment, components, and assemblies to the die-cast, extrusion, and automotive industries. At today’s levels, its stock trades at 16 times fiscal 2015’s estimated earnings per share of $1.02 and 12.8 times fiscal 2016’s estimated earnings per share of $1.27, both of which are inexpensive compared to the industry average multiple of 21.1. Additionally, the company pays a quarterly dividend of $0.06 per share, or $0.24 per share annually, giving its stock a 1.5% yield.
2. Empire Company Limited
Empire Company Limited (TSX: EMP.A) is one Canada’s largest owners and operators of grocery stores. At current levels, its stock trades at 14.4 times fiscal 2016’s estimated earnings per share of $6.20 and 13.3 times fiscal 2017’s estimated earnings per share of $6.67, both of which are inexpensive compared to the industry average price-to-earnings multiple of 30.4. In addition, the company pays a quarterly dividend of $0.30 per share, or $1.20 per share annually, which gives its stock a 1.35% yield.
3. Fiera Capital Corp.
Fiera Capital Corp. (TSX: FSZ) is one of Canada’s largest investment managers, with over $90 billion in assets under management. At today’s levels, its stock trades at 12.8 times fiscal 2015’s estimated earnings per share of $0.96 and 11.6 times fiscal 2016’s estimated earnings per share of $1.06, both of which are inexpensive compared to the industry average price-to-earnings multiple of 56.5. Also, the company pays a quarterly dividend of $0.13 per share, or $0.52 per share annually, giving its stock a 4.2% yield.
Which of these value stocks belong in your portfolio?
Exco Technologies, Empire, and Fiera Capital are three of the top value plays in their respective industries. Foolish investors should take a closer look and strongly consider beginning to scale in to long-term positions in at least one of them.
