In this market, where it seems that investors are in a very optimistic mood and willing to pay up for their investments, it is good to know that there are still some stocks that represent good value.
Here are two of these that are actually on sale.
A secular shift in this industry is being fueled by the transition from analog to digital, growing demand worldwide for HDTV, government mandate for digital, and the fact that broadcasters are in the process of building their infrastructure.
And as complexity in the industry is increasing, with more channels and faster bandwidth, this means that Evertz’s solutions will continue to be increasingly needed.
But the stock has languished since mid-November, declining 7% to settle at today’s price of $18.42. That’s not a huge decline, but given that the shares were already trading in the cheap territory, I view this as a good time to bulk up.
The stock trades at a P/E ratio of 19 times this year’s expected consensus earnings and 15 times next year’s.
Strong demand, as evidenced by accelerating revenue growth in the first quarter of fiscal 2018, when revenue increased 25% versus last year to $109 million, will be a catalyst for the stock. This follows a healthy, but weaker fourth-quarter revenue growth of 11%.
And Evertz has a strong balance sheet and a current dividend yield of 3.9%.
Stay tuned. The company reports second-quarter results on December 14.
Although the stock has performed well this year, Manulife currently still trades at attractive multiples given the improved environment expected in 2018 and its growth profile.
The company is currently seeing strong growth in Asia, where earnings increased 16% on a constant-currency basis in the third quarter, and solid performance in its wealth management segment, where the Standard Life and the New York retirement plan acquisitions will help to boost its position and growth going forward.
On the cost side, Manulife has embarked on making improvements to its operational efficiency. To this end, Manulife has achieved $500 million of pre-tax annualized cost savings in 2016, and we should expect more to come as this remains a focus for the company.
Its return on equity is on the rise, with ROE coming in at 11.7% in the third quarter compared to 10% in 2016. Of the life insurers, Manulife is making the biggest improvements to its ROE, and it remains the least-expensive stock.