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I have recently added a Watchlist to Margin of Safety Investing in order to regularly keep track of stocks I have reviewed so far and had both a good business performance and a conservative balance sheet.

Then, by using a 3-year EPS average Price / Earnings ratio (Graham method) I have established a price target which I use as a yardstick to filter stock that are worth a longer look (and a deeper valuation exercise).

Of the 44 stocks I have reviewed so far, 19 are on my Watchlist, and 10 are below or close to the target price, justifying a deeper look.

The current stocks that I believe could be attractive are:

Company Current Price P/E trailing Cash Return Dividend yield Target Price Current / Target
Aeropostale (NYSE:ARO) 23.1 9.1 13.1 - 31.5 73%
Becton, Dickinson (NYSE:BDX) 81.5 16.6 6.3 2.0 75.0 109%
Buckle Inc. (NYSE:BKE) 37.7 14.0 5.1 - 38.0 99%
General Dynamics (NYSE:GD) 67.6 10.4 10.1 2.5 94.0 72%
Johnson & Johnson (NYSE:JNJ) 62.6 12.9 9.2 3.5 69.0 91%
Medtronic (NYSE:MDT) 34.2 10.8 8.2 2.6 34.0 101%
Novartis (NYSE:NVS) 54.8 12.5 8.1 3.0 58.0 94%
P&G (NYSE:PG) 62.3 17.5 5.3 3.1 60.0 104%
Sysco (NYSE:SYY) 29.3 15.1 2.3 3.6 28.0 105%
Wal-Mart (NYSE:WMT) 54.6 13.4 6.1 2.2 55.0 99%

Disclosure: I am Long ARO, BDX, BKE, GD, JNJ, NVS.

Source: 10 Potentially Attractive Stocks