Interested in finding stocks that pay reliable dividends? Do you prefer investing in stocks that analysts have weighed in on? Looking for undervalued stocks? You might be interested in this list.
The Price/Cash Flow ratio is a price-multiple valuation metric that also measures a company's future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the company is taking in from a valuation standpoint. Price/Cash Flow Ratio = Current Stock Price/Cash Flow Per Share.
The Price/Sales ratio is a price-multiple valuation metric used to help identify if a company is cheap by its twelve month trailing sales numbers. In the most basic terms, it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A company with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a company's sales. On the other hand, a company is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear. Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share.
We first looked for stocks with a very high yield (more than 5%). We next screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). We then looked for companies that are trading at low price-multiple valuations (P/CFO<10)(P/S<1). We did not screen out any market caps or sectors.
Do you think these stocks have what it takes to grow? Use our list along with your own analysis.
1) United Online, Inc. (UNTD)
|Industry:||Specialty Retail, Other|
United Online, Inc. has a Dividend Yield of 10.42% and Payout Ratio of 75.67% and Analysts' Rating of 2.50 and Price/Cash Flow Ratio of 2.53 and Price/Sales Ratio of 0.39. The short interest was 8.13% as of 05/24/2012. United Online, Inc., through its subsidiaries, provides consumer products and services over the Internet in the United States, Europe, and internationally.
The company operates in three segments: FTD, Content and Media, and Communications. The FTD segment provides floral and related products, including occasion gifts, bath and beauty products, jewelry, wine, fruit and other gift baskets, chocolates, and stuffed animals to consumers and retail florists, as well as to other retail locations offering floral and related products and services primarily through the FTD.
2) Belo Corp. (BLC)
|Industry:||Broadcasting - TV|
Belo Corp. has a Dividend Yield of 5.44% and Payout Ratio of 31.57% and Analysts' Rating of 2.00 and Price/Cash Flow Ratio of 4.61 and Price/Sales Ratio of 0.85. The short interest was 8.63% as of 05/24/2012. Belo Corp. operates as a television company in the United States.
The company owns 20 television stations, including ABC, CBS, NBC, FOX, CW, and MyNetwork TV affiliates, as well as the associated websites in 15 markets. It also owns two regional cable news operations, including Texas Cable News in Dallas/Fort Worth, Texas; and Northwest Cable News in Seattle/Tacoma, Washington.
3) Gannett Co., Inc. (GCI)
|Industry:||Publishing - Newspapers|
Gannett Co., Inc. has a Dividend Yield of 6.24% and Payout Ratio of 21.77% and Analysts' Rating of 2.50 and Price/Cash Flow Ratio of 19.13 and Price/Sales Ratio of 0.58. The short interest was 9.94% as of 05/24/2012. Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally.
4) Sinclair Broadcast Group Inc. (SBGI)
|Industry:||Broadcasting - TV|
Sinclair Broadcast Group Inc. has a Dividend Yield of 5.65% and an Analysts' Rating of 2.00 and Price/Cash Flow Ratio of 7.18 and Price/Sales Ratio of 0.86. The Payout Ratio could not be determined. The short interest was 5.28% as of 05/24/2012. Sinclair Broadcast Group, Inc., a television broadcasting company, owns or provides programming, operating, or sales services to television stations and other commercial broadcasting groups in the United States.
Sinclair broadcasts free over-the-air programming, such as network provided programs, news produced locally, local sporting events, programming from program service arrangements, syndicated entertainment programs, and other locally produced programs. The company owns or provides programming and operating services pursuant to local marketing agreements, or provides sales services pursuant to outsourcing agreements to 73 television stations in 45 markets.
5) R.R. Donnelley & Sons Company (RRD)
R.R. Donnelley & Sons Company has a Dividend Yield of 9.94% and an Analysts' Rating of 2.20 and Price/Cash Flow Ratio of 4.54 and Price/Sales Ratio of 0.18. The Payout Ratio could not be determined. The short interest was 31.88% as of 05/24/2012. R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide.
The company's products and related service offerings include label and paperboard packaging products, as well as prime label, corrugated, and other packaging products; custom packaging comprising designing, printing, die cutting, finishing, and assembling; and digital content distribution, e-reading software, content conversion, and data analytics and business intelligence services.
It also provides software for readers to select relevant content to be digitally produced as specialized publications; online tools for consumers to purchase online subscriptions from publishers; and online tools that allow real estate associates, brokers, multiple listing service associations, and other marketers to create customized communications materials.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.