These are not considered “disruptive innovation” equities. They are not the leading components of the NASDAQ-100. Unlike formerly hot big techs that have mostly just sold off for the last few months, these low price-earnings ratio stocks have recently been hitting higher highs.
For those investors interested in New York Stock Exchange listed equities that have been steadily gaining in value, here are 3 that pass the test. One’s a brand name insurance company, one is a shipping company and the other is a real estate investment trust.
Allstate
The property and casualty insurer is showing remarkable strength with a move from December, 2021 at 106 to last week’s close at 141. The Northbrook, Illinois based company is trading with price-earnings ratio of only 8.41 at a time when the p/e of the Standard & Poor’s 500 sits at 25.91. Early in March, Goldman Sachs upgraded their opinion of Allstate from “sell” to “buy” with a price target of 142. The stock is now 18 cents away from that level. While waiting, investors receive a dividend yield of 2.40%.
Genco Shipping and Trading.
Joining the other shipping stocks that are benefitting from supply chain issues and other global trade problems, this one just hit 23.06, up from that late January low down near 12.50. Nice move.
Genco is headquartered in New York with branch operations in Singapore and Copenhagen. The stock trades at just 1.10 times book value, with a price-earnings ratio of 5.59. There’s a 2.51% dividend for those who look for such things, like value investors.
NexPoint Real Estate Investment Trust.
This asset management firm trades with a price-earnings ratio of 2.38 and at 64% of its book value. That’s a price low down near 12 last July and now the equity is up to 15.74. NexPoint is paying a 3.81% dividend. The company has no long-term debt. The average daily volume is relatively low for an NYSE-listed security: 170,400 shares.
They’re based in Dallas, Texas and recently (in November, 2021) changed their name from “NexPoint Strategic Opportunities Fund” to “NexPoint Diversified Real Estate Trust.” According to their website, “The fund invests primarily in below-investment-grade debt, equity securities, and real estate, and has the ability to hedge risk. The fund’s manager attempts to deliver consistent returns in excess of the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format consistent with monthly dividends.”
There are no guarantees that these stocks will continue their recent bullish runs. It’s true, however, that if you compare their performance to last year’s “innovation” favorites, Allstate, Genko Shipping and NexPoint Diversified Real Estate Trust have the better looking price charts.
If you screen for “low price-earnings ratio” along with “new highs,” these are the types of names you’ll find. It’s a different crop of stocks hitting higher prices right now than those of a year ago.
Not investment advice. For educational purposes only.
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