As many investors have come to know, finding the right stock at the right price is a difficult task. To make things easier for you, I have compiled a list of three stocks that are trading at inexpensive forward valuations compared with their industry averages, so let’s take a closer look at each to determine which one would fit best in your portfolio.
1. Aimia Inc.
Aimia Inc. (TSX: AIM) is one of the world’s largest providers of marketing and loyalty analytics services. At today’s levels, its stock trades at 12.5 times fiscal 2015’s estimated earnings per share of $0.88 and 11.9 times fiscal 2016’s estimated earnings per share of $0.92, both of which are inexpensive compared with its industry average price-to-earnings multiple of 21.3.
In addition, the company pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, giving its stock a 6.9% yield.
2. Metro Inc.
Metro Inc. (TSX: MRU) is one of the largest owners and operators of grocery stores, convenience stores, and pharmacies in Canada. At current levels, its stock trades at 17 times fiscal 2015’s estimated earnings per share of $2.03 and 15.4 times fiscal 2016’s estimated earnings per share of $2.24, both of which are inexpensive compared with its industry average price-to-earnings multiple of 27.2.
In addition, the company pays a quarterly dividend of $0.117 per share, or $0.468 per share annually, which gives its stock a 1.4% yield.
3. Magellan Aerospace Corp.
Magellan Aerospace Corp. (TSX: MAL) is one of the largest integrated aerospace companies in North America and Europe. At today’s levels, its stock trades at 13.5 times fiscal 2015’s estimated earnings per share of $1.24 and 11.4 times fiscal 2016’s estimated earnings per share of $1.47, both of which are inexpensive compared with its industry average price-to-earnings multiple of 18.1.
Additionally, the company pays a quarterly dividend of $0.055 per share, or $0.22 per share annually, giving its stock a 1.3% yield.
Should you buy one of these stocks today?
Aimia, Metro, and Magellan Aerospace are three of the most attractive investment options in their respective industries. Foolish investors should consider establishing positions in at least one of them today.
