Over the last 12 months, TIS is up 73 % -- I wish I would have found this stock earlier.
While relative performance and a healthy stock chart are very important, I still do not want to pay up for stocks. What about the valuation of the shares?
Data from Best Stocks Now AppThe company is trading at just under 16 times forward earnings, which is a discount to the overall market. There is not a whole lot of analyst coverage on the stock, but I did some research on its history and most recent quarters in order to determine a fair growth rate. I came up with a 10% growth rate. By extrapolating current earnings over the next five years at this rate, and then applying an appropriate multiple, I come up with a $49, five-year target price. The stock closed Wednesday at $27.75. It also offers a 5% yield, so even if the stock goes nowhere you are still going to get a pretty good dividend. TIS passes my valuation test with an A. TIS also passed my performance test. In fact, of the 3,511 stock in my database, TIS comes in at 75 overall. Growth and Income clients at Gunderson Capital Management are now long the stock. Data from Best Stocks Now App I will take a group of dividend payers like this any day of the week over bonds for my income investors. In fact, I have had no exposure to a bond market that is now down more than 12% so far this year. I am glad that I stumbled upon this stock. Follow @billgunderson This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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