Welcome to the Growth at a Reasonable Price screen for November. Generally growth at a reasonable price is not an investment criteria for value investors, but these screens do turn up stocks that can satisfy a stricter value investment filters.
That being said, large cap stocks are less likely to exhibit both value and growth attributes as these are mature and well followed companies. Any results found via this screen can be a great long term hold.
This screen looks for large cap stocks over $5 Billion in market capitalization with attractive growth characteristics. We require a reasonable PEG ratio to ensure attractive valuation. Some of the other parameters include:
- EPS 5 Year Avg Growth > 15%
- EPS Next Year Estimated Change > 15%
- Earnings Yield > 5%
- Operating Income 5 Year Avg Growth > 15%
- PEG Ratio, forward < 1.2
- PEG Ratio, trailing < 1.2
- Sales 5 Year Avg Growth > 8%
The Screen Results
EPS growth, 5 YR Avg
peg ratio, forward
sales growth, 5 yr avg
Berry Global Group
Notes and Observations
- BERY: Recent earnings have taken a hit and the next year estimates have significant growth baked in. The stock price has declined but still has elevated P/E and P/B multiples. I am not very confident.
- BMY: Fairly valued stock that may be a good purchase. Still need to review deeper though. Solid 2.9% dividend yield with some growth.
- FANG: Still don't recommend FANG stocks :). In this case of course, the oil market may not yet have bottomed.
- TMUS: The CEO John Legere is leaving the post soon. Of more immediate concern is the share price that trades at 20 times earning. With no dividend to cushion the valuation blow, if it comes, I will keep looking.
BMY is an intriguing research candidate as we have not really invested in a drug company for a long while. I am excited to dig into this.