Today, July 22, 2022, Dow Jones is trading at ~31,979, the S&P 500 at ~3,972, and Nasdaq at ~11,876. While the markets are still shaking the damage done by rising interest rates and inflation, this is the best time to find bargain hunters who are asking: “what are the best value stocks right now?”
Here, at BigStocks.io, we found 5 such stocks. Apart from their low P/E and P/B ratios, their issuing companies have done well in terms of profitability.
Let’s have a look…
1. NRG Energy Inc (NYSE: NRG)
Business
NRG Energy, founded in 1992 and headquartered in Houston, Texas, is one of the largest American energy companies (7M customers).
On top of that, the company is one of the biggest power producers in the United States, with 16 GWs of coal, oil, gas, and nuclear power generation capacity.
Since 2018, NRG Energy has sold a significant stake in NRG Yield (47%), among other renewable energy investments.
NRG became a stand-alone entity in 2003 after exiting Chapter 11 bankruptcy.
Forecast
Based on the 9 analysts’ 12-month median price target of $43 and the stock’s trading price, NRG now has a 20.58% upside. The highest price target is $52 which represents a 45.82% upside and the lowest is $35 which represents a 1.85% downside.
Fundamentals
| P/E ratio | 3.99x |
| P/B ratio | 2.42x |
| ROE (Last Year) | 60.75% |
| Revenue Growth (YoY) | 196.81% |
| EPS Growth (YoY) | 331.4% |
| Current Ratio | 1.36x |
| Interest Coverage | 6.89x |
| D/E ratio | 5.43x |
Source: NRG Annual Report
2. GMS Inc (NYSE: GMS)
Business
GMS Inc, founded in 1971 and headquartered in Tucker, GA, is a specialty building products distributor (ceilings, suspended ceilings systems, wallboard steel framing, etc.)
The company serves its offerings to commercial repair and remodel, commercial new construction, residential repair and remodel, and residential new construction. Its geographical segments are Central, Northeast, Southern, Western, Midwest, Southeast, and Canada.
GMS’s largest portion of its revenue is derived from Wallboard offerings and it comes from the US.
Forecast
Based on the 8 analysts’ 12-month median price target of $96 and the stock’s trading price, GMS now has an 18.28% upside. The highest price target is $70 which represents a 45.25% upside and the lowest is $48 which represents a 0.39% downside.
Fundamentals
| P/E ratio | 7.73x |
| P/B ratio | 1.98x |
| ROE (Last Year) | 25.68% |
| Revenue Growth (YoY) | 40.5% |
| EPS Growth (YoY) | 155.32% |
| Current Ratio | 2.06x |
| Interest Coverage | 7.21x |
| D/E ratio | 1.91x |
Source: GMS Annual Report
3. Minerals Technologies Inc (NYSE: MTX)
Business
Minerals Technologies Inc, founded in 1992 and headquartered in New York, NY, is a mineral-based products provider.
The company operates through three segments:
- Specialty Minerals (selling talc, limestone, and calcium carbonate)
- Refractories (selling products intended for steel furnaces)
- Performance Materials (selling household products and bentonite used in steel alloy casting)
Most of the company’s sales come from the US.
Forecast
Based on the 4 analysts’ 12-month median price target of $88 and the stock’s trading price, MTX now has a 37.65% upside. The highest price target is $100 which represents a 56.42% upside and the lowest is $73 which represents a 14.18% upside.
Fundamentals
| P/E ratio | 13.15x |
| P/B ratio | 1.36x |
| ROE (Last Year) | 10.66% |
| Revenue Growth (YoY) | 16.52% |
| EPS Growth (YoY) | 47.72% |
| Current Ratio | 2.44x |
| Interest Coverage | 6.33x |
| D/E ratio | 1.13x |
Source: MTX Annual Report
4. Univar Solutions Inc (NYSE: UNVR)
Business
Univar Solutions Inc, founded in 1924 and headquartered in Downers Grove, Illinois, is a chemical-based products provider.
The company has customers in the cleaning and sanitization, agriculture, coating and adhesives, food ingredients, personal care, chemical manufacturing pharmaceuticals, and mining industries.
Additionally to its product offerings, Univar also offers services such as chemical waste management, specialty chemical blending, and automated tank monitoring.
The company does business through four geographical segments (United States, Canada, Europe and the Middle East and Africa, and the rest of the globe.
Forecast
Based on the 9 analysts’ 12-month median price target of $35 and the stock’s trading price, UNVR now has a 37.09% upside. The highest price target is $42 which represents a 64.51% upside and the lowest is $32 which represents a 25.34% upside.
Fundamentals
| P/E ratio | 9.49x |
| P/B ratio | 1.9x |
| ROE (Last Year) | 20.091% |
| Revenue Growth (YoY) | 15.37% |
| EPS Growth (YoY) | 767.74% |
| Current Ratio | 1.73x |
| Interest Coverage | 4.8x |
| D/E ratio | 1.95x |
Source: UNVR Annual Report
5. Terex Corp (NYSE: TEX)
Business
Terex, founded in 1933 and headquartered in Norwalk, Connecticut, is a manufacturer of materials processing equipment, aerial work platforms, and specialty equipment (concrete mixer trucks, cranes, and material handlers).
The company’s current status is the product of a shift of focus towards its two core segments and multiple acquisitions over decades.
Forecast
Based on the 15 analysts’ 12-month median price target of $38 and the stock’s trading price, TEX now has a 23.57% upside. The highest price target is $64 which represents a 108.13% upside and the lowest is $30 which represents a 2.43% downside.
Fundamentals
| P/E ratio | 10.01x |
| P/B ratio | 1.96x |
| ROE (Last Year) | 19.9% |
| Revenue Growth (YoY) | 26.34% |
| EPS Growth (YoY) | 2261.53% |
| Current Ratio | 1.94x |
| Interest Coverage | 6.44x |
| D/E ratio | 1.58x |
Source: TEX Annual Report
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