(VIANEWS) – New Mountain Finance Corporation (NMFC), Hartford Financial Services Group (HIG), Westamerica Bancorporation (WABC) are the highest sales growth and return on equity stocks on this list.
Here is a list of stocks with an above 5% expected next quarter sales growth, and a 3% or higher return on equity. May these stocks be a good medium-term investment option?
1. New Mountain Finance Corporation (NMFC)
20.4% sales growth and 5.58% return on equity
New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and second lien debt, unsecured notes, bonds, and mezzanine securities. It invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare services and products, healthcare facilities, energy, media, consumer and industrial services, healthcare Information Technology, Information Technology and services, specialty chemicals and materials, telecommunication, retail, and power generation. It seeks to invest in United States. It typically invests between $10 million and $50 million. Within middle market it seeks to invest in companies having EBITDA between $20 million and $200 million. It prefers to invest in equity interests, such as preferred stock, common stock, warrants, or options received in connection with its debt investments and directly in the equity of private companies. The fund makes investments through both primary originations and open-market secondary purchases. It invests primarily in debt securities that are rated below investment grade and have contractual unlevered returns of 10% to 15%. The firm may also invest in distressed debt and related opportunities and prefers to invest in targets having private equity sponsorship. It seeks to hold its investments between five years and ten years. The fund prefer to have majority stake in companies.
Earnings Per Share
As for profitability, New Mountain Finance Corporation has a trailing twelve months EPS of $0.74.
PE Ratio
New Mountain Finance Corporation has a trailing twelve months price to earnings ratio of 15.61. Meaning, the purchaser of the share is investing $15.61 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 5.58%.
Volume
Today’s last reported volume for New Mountain Finance Corporation is 39130 which is 89.44% below its average volume of 370829.
2. Hartford Financial Services Group (HIG)
12.1% sales growth and 11.53% return on equity
The Hartford Financial Services Group, Inc. provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. This segment distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded products through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.
Earnings Per Share
As for profitability, Hartford Financial Services Group has a trailing twelve months EPS of $5.8.
PE Ratio
Hartford Financial Services Group has a trailing twelve months price to earnings ratio of 11.97. Meaning, the purchaser of the share is investing $11.97 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 11.53%.
Sales Growth
Hartford Financial Services Group’s sales growth is 9.7% for the current quarter and 12.1% for the next.
3. Westamerica Bancorporation (WABC)
8.5% sales growth and 20.8% return on equity
Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as other loans primarily consisting of indirect automobile loans. Westamerica Bancorporation operates through 79 branch offices in 21 counties in Northern and Central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. Westamerica Bancorporation was founded in 1972 and is headquartered in San Rafael, California.
Earnings Per Share
As for profitability, Westamerica Bancorporation has a trailing twelve months EPS of $5.16.
PE Ratio
Westamerica Bancorporation has a trailing twelve months price to earnings ratio of 7.3. Meaning, the purchaser of the share is investing $7.3 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 20.8%.
4. Chemed Corp (CHE)
6.6% sales growth and 30.98% return on equity
Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers in the United States. It operates in two segments, VITAS and Roto-Rooter. The company also offers plumbing, drain cleaning, water restoration, and other related services to residential and commercial customers through company-owned branches and independent contractors, and franchised locations. Chemed Corporation was incorporated in 1970 and is headquartered in Cincinnati, Ohio.
Earnings Per Share
As for profitability, Chemed Corp has a trailing twelve months EPS of $15.88.
PE Ratio
Chemed Corp has a trailing twelve months price to earnings ratio of 34.82. Meaning, the purchaser of the share is investing $34.82 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 30.98%.
Growth Estimates Quarters
The company’s growth estimates for the ongoing quarter and the next is 6% and 8.9%, respectively.
