Top 5 All-Around-Value Stocks for June 23

Stock quotes in this article: DLTR , NJR , UGI , EPD , LANC  

TSC Ratings TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety-first" approach aims to reduce risk while achieving performance on a total return basis.

Each business day, we compile a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap.

Today, all-around value stocks are in the spotlight. These companies have annual revenue of more than $500 million, below-average valuations and debt of less than 49% of total capital, and they receive buy ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.

Dollar Tree(DLTR Quote) operates discount variety stores in the U.S. under the names Dollar Tree, Deal$ and Dollar Bills. We have rated Dollar Tree buy since May 2008.

First quarter revenue jumped 14% year over year, surpassing the industry average of 7% growth, as net income increased 39% to $60 million. The company maintained modest leverage as reflected by its debt-to-equity ratio of 0.21, although a quick ratio of 0.86 indicates a less-than-ideal liquidity position.

Shares of Dollar Tree have climbed 1% year-to-date, slightly outperforming the Dow and S&P 500. The stock trades at a price-to-earnings ratio around 16, which is in line with the S&P average, and it does not offer dividends.

New Jersey Resources(NJR Quote) is an energy services company that provides retail and wholesale energy services to customers in New Jersey and other states from the Gulf Coast to New England and Canada. We have rated New Jersey Resources buy since September 2002.

Second-fiscal-quarter revenue declined marginally, but EPS surged 183% to 83 cents. Net operating cash flow increased 120% to $383 million. The debt-to-equity ratio remained low at 0.63, but a quick ratio of 0.43 indicates a weak cash position. The company has increased its full-year earnings guidance for fiscal 2009 and now expects EPS between $2.35 and $2.45. Shares of New Jersey Resources have fallen 7% in 2009, underperforming the Dow and S&P 500. The stock trades at a price to earnings ratio of 13, representing a slight discount to the market, and offers an attractive 3.4% dividend yield.

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