This article will focus on a stock screen that I ran looking for quality, low priced shares that are trading for between $1 and $7 per share. It focused only on stocks that are a component of the NYSE or the NASDAQ, also on stocks that have market caps that qualify them as a small cap or larger, that have share prices between $1 and $7, that have current fiscal year EPS growth of at least 10%, and on stocks that have a PE ratio of 10 or less and/or a PE ratio of below the industry average over the trailing 12 months. This stock screen was designed to find companies with affordable share prices that are generating decent EPS numbers. This would give me as an investor an indication that with low stock prices, we may potentially uncover some undervalued companies.
Please note that on the following stocks, no further research other than what is being presented has been conducted. These stocks come with risk that they will go down in value from here on forward, as any stock would. Please conduct your own research and due diligence before deciding if you would like to invest in these stocks. This is just providing information on what I came across when looking for these type of stocks. With a stock screener like this, a lot of times one has to come across many stocks that are no good before finding one that is good. At least, that has been my experience. That being said, here are the stocks. This screener was run on 12/25/2012, when the stock market was closed. It produced five stocks.
The first stock is Frontier Communications (FTR). Its share price is $4.24 as of 12/25/2012. Analysts estimate that for the fiscal year ending in December of 2012, it will earn .26 per share, up from .23 in the year ago period. It has a forward PE ratio of 16.96. It also pays a dividend of .40 per year, giving it a 9.3% annual yield. This is an intriguing stock to research further.
The next stock is JetBlue Airways Corporation (JBLU). Its share price is $5.75 as of 12/25/2012. Analysts estimate that it will earn .41 in EPS in the fiscal year ending December of 2012, which is up from .29 in the previous year. It has a forward PE ratio of 9.58. It does not currently pay a dividend but it does offer potential earnings growth at a low price per share.
Next up, we have CapLease, Inc. (LSE). Its share price is $5.43 as of 12/25/2012. Analysts estimate that it will earn .62 per share in EPS this year. It has a forward PE ratio of 8.90. It currently pays a dividend annually of .30 per share, giving it a current yield of 5.5%. This is a great stock to conduct further research on as it is earning money and is paying a nice dividend.
For our fourth stock, we have Resource Capital Corp. (RSO). Its share price is $5.82 as of 12/25/2012. Analysts estimate that it will earn .96 in EPS this year. It has a forward PE ratio of 6.19. It currently pays an annual dividend of .80 per share, giving it a whopping yield of 13.80%. This stock screen is producing high dividend payers without it even aiming to.
Finally, we have Siliconware Precision Industries ADR (SPIL) for our fifth and final stock from this screen. Its share price is $5.22 as of 12/25/2012. Analysts estimate it will earn .33 in EPS this year (ending in December of 2012), which is up from .26 a year ago. It currently pays an annual dividend of .17, which gives it a current yield of 3.20%. This is another stock that is priced low which pays a dividend.
The following is a price chart for these stocks' performance over the past year. The chart will show percentage changes so you can see which have been the best recent performers.
FTR data by YCharts
As the chart shows, CapLease, Inc. has been the best performer in price over the past year. This stock screener has produced some stocks that you may choose to research further. Out of these stocks, four of the five are currently paying dividends. Thank you for reading this article and I hope you find it helpful.