As many investors know, finding the right stock at the right price can be a very difficult task. In order to make things easier for you, I have compiled a list of three stocks that are trading at inexpensive forward valuations compared with their five-year averages, so let’s take a closer look at each to determine which would be the best fit in your portfolio.
1. DH Corp.
DH Corp. (TSX:DH) is one of the leading providers of financial technology to the world’s financial institutions. At today’s levels, its stock trades at 17.4 times fiscal 2015’s estimated earnings per share of $2.38 and 15.7 times fiscal 2016’s estimated earnings per share of $2.63, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 18.6. In addition, the company pays a quarterly dividend of $0.32 per share, or $1.28 per share annually, giving its stock a 3.1% yield.
2. Altus Group Ltd.
Altus Group Ltd. (TSX:AIF) is one of the leading providers of independent advisory services, software, and data solutions to the world’s commercial real estate industry. At current levels, its stock trades at 23.8 times fiscal 2015’s estimated earnings per share of $0.88 and 16.6 times fiscal 2016’s estimated earnings per share of $1.26, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 61.5. Also, the company pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, which gives its stock a 2.9% yield.
3. Intact Financial Corporation
Intact Financial Corporation (TSX:IFC) is one of the leading providers of property and casualty insurance in Canada. At today’s levels, its stock trades at 14.8 times fiscal 2015’s estimated earnings per share of $6.24 and 13.8 times fiscal 2016’s estimated earnings per share of $6.72, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 17.2. In addition, the company pays a quarterly dividend of $0.53 per share, or $2.12 per share annually, giving its stock a 2.3% yield.
Should you buy one of these stocks today?
DH Corp., Altus Group, and Intact Financial represent three of the top value plays in their respective industries, and all have the added benefit of dividend yields of over 2%. Foolish investors should take a closer look and strongly consider establishing positions in one or more of them today.
