As many investors know, finding the right stock at the right price can be a very difficult task, but the recent downturn in the market has created a plethora of long-term buying opportunities. Let’s take a look at three of the top value plays from three different industries to determine which would be the best fit for your portfolio.
1. First Capital Realty Inc.
First Capital Realty Inc. (TSX:FCR) is one of Canada’s largest owners, developers, and managers of grocery-anchored urban properties. At today’s levels, its stock trades at 16.5 times fiscal 2015’s estimated earnings per share of $1.04 and 15.7 times fiscal 2016’s estimated earnings per share of $1.09, both of which are inexpensive compared with its five-year average multiple of 24.9. In addition, the company pays a quarterly dividend of $0.215 per share, or $0.86 per share annually, giving its stock a yield of approximately 5%.
2. Thomson Reuters Corporation (All figures are in U.S. dollars)
Thomson Reuters Corporation (TSX: TRI)(NYSE:TRI) is the world’s leading source of intelligent information for businesses and professionals. At current levels, its stock trades at 24.3 times fiscal 2015’s estimated earnings per share of $2.03 and 21.4 times fiscal 2016’s estimated earnings per share of $2.31, both of which are inexpensive compared with its five-year average multiple of 42.6. Also, the company pays a quarterly dividend of $0.335 per share, or $1.34 per share annually, which gives its stock a yield of approximately 3.5%.
3. Saputo Inc.
Saputo Inc. (TSX: SAP) is the largest dairy processor in Canada and one of the 10 largest in the world. At today’s levels, its stock trades at 19.4 times fiscal 2016’s estimated earnings per share of $1.52 and 17.2 times fiscal 2017’s estimated earnings per share of $1.71, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 20.7. Additionally, the company pays a quarterly dividend of $0.135 per share, or $0.54 per share annually, giving its stock a yield of approximately 1.8%.
Which of these stocks would fit best in your portfolio?
First Capital Realty, Thomson Reuters, and Saputo are three of the top value plays in their respective industries. All Foolish investors should strongly consider initiating positions in at least one of them today.
