{"id":10436,"date":"2022-07-28T19:30:42","date_gmt":"2022-07-29T00:30:42","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10436"},"modified":"2022-07-28T19:30:43","modified_gmt":"2022-07-29T00:30:43","slug":"6-growth-stocks-that-are-bargains-after-taking-a-tumble","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10436","title":{"rendered":"6 Growth Stocks That Are Bargains After Taking a Tumble"},"content":{"rendered":"\n<p><strong><em>These bargain growth stocks have low valuations and high dividend yields<\/em><\/strong><\/p>\n\n\n\n<ul><li>These bargain growth stocks have low valuations and higher than average dividend yields.<\/li><li><strong>JPMorgan Chase<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/jpm-stock-quote\/\"><strong><u>JPM<\/u><\/strong><\/a>): Analysts expect the bank to report solid earnings next year.<\/li><li><strong>MDC Holdings<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/mdc-stock-quote\/\"><strong><u>MDC<\/u><\/strong><\/a>): This home building stock has dropped over 32% YTD and the stock is now cheap at 3.8x earnings.<\/li><li><strong>Goldman Sachs<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/gs-stock-quote\/\"><strong><u>GS<\/u><\/strong><\/a>): This major investment banking firm is now moving more into consumer banking rather than just Wall Street banking.<\/li><li><strong>KB Home<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/kbh-stock-quote\/\"><strong><u>KBH<\/u><\/strong><\/a>): The stock is down almost 25%, giving it a very cheap P\/E of just 3.2x earnings and a 1.85% dividend yield.<\/li><li><strong>Ford<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/f-stock-quote\/\"><strong><u>F<\/u><\/strong><\/a>): Ford stock is down over 40% year-to-date, but the company is still primed for growth in the years ahead.<\/li><li><strong>Verizon<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/vz-stock-quote\/\"><strong><u>VZ<\/u><\/strong><\/a>): Verizon is cheap and also has more room to grow.<\/li><\/ul>\n\n\n\n<p>The following are bargain growth stocks as their valuations are low, they feature cheap price-to-earnings multiples and also have higher than average dividend yields. In addition, their earnings are still expected to rise, despite fears of a recession.<\/p>\n\n\n\n<p>Moreover, these stocks may be reaching close to their trough levels for the cycle. The market discounts the future at least six months in advance.<\/p>\n\n\n\n<p>As a result, the average P\/E of this list of bargain growth stocks is 6.9x and the average dividend yield is 3.63%. Moreover, these are still growth companies.<img loading=\"lazy\" src=\"https:\/\/investorplace.com\/wp-content\/uploads\/2022\/07\/7-22-22-bargain-growth-stocks-investorplace.png\" alt=\"7-22-22 - Bargain Growth Stocks - Mark R. Hake, CFA\" width=\"957\" height=\"647\">Source: Mark R. Hake, CFA<\/p>\n\n\n\n<p>Analysts may be forced to lower their outlook for a number of these stocks. That is what the market fears and why the stock prices are so cheap now.<\/p>\n\n\n\n<p>But these stocks are set to deliver positive earnings next year along with good dividends that make them bargain growth stocks.<\/p>\n\n\n\n<p>Let\u2019s dive in and look at these stocks.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Ticker<\/strong><\/td><td><strong>Company<\/strong><\/td><td><strong>Recent Price<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/jpm-stock-quote\/\"><strong><u>JPM<\/u><\/strong><\/a><\/td><td>JPMorgan Chase<\/td><td>$116.27<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/mdc-stock-quote\/\"><strong><u>MDC<\/u><\/strong><\/a><\/td><td>MDC Holdings<\/td><td>$36.63<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/gs-stock-quote\/\"><strong><u>GS<\/u><\/strong><\/a><\/td><td>Goldman Sachs<\/td><td>$325.43<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/kbh-stock-quote\/\"><strong><u>KBH<\/u><\/strong><\/a><\/td><td>KB Home<\/td><td>$31.77<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/f-stock-quote\/\"><strong><u>F<\/u><\/strong><\/a><\/td><td>Ford<\/td><td>$12.90<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/vz-stock-quote\/\"><strong><u>VZ<\/u><\/strong><\/a><\/td><td>Verizon<\/td><td>$44.64<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2>JPMorgan Chase (JPM)<\/h2>\n\n\n\n<p><strong>JPMorgan Chase&nbsp;<\/strong>(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/jpm-stock-quote\/\"><strong><u>JPM<\/u><\/strong><\/a>) recently released its earnings and they came in at $2.76 per share, a miss of 15 cents from analysts\u2019 expectations of $2.91 in earnings-per-share.<\/p>\n\n\n\n<p>Nevertheless, analysts still forecast EPS of $11.19 this year and $12.57 next year. That puts JPM stock on a forward price-to-earnings of 10.3x for 2022 and 9.1x for 2023. This represents potential earnings growth in 2023 of over 12% for 2023.<\/p>\n\n\n\n<p>JPMorgan bank is a good dividend-paying stock. Right now it is paying a $4 dividend, but it is likely to raise that dividend soon. When the bank declares its dividend by late September it may raise the dividend. As it stands now, at $114.76 as of July 22, JPM stock has a dividend yield of 3.49%.<\/p>\n\n\n\n<p>This is significantly higher than its historical dividend yield. For example,\u00a0<em>Seeking Alpha<\/em>\u00a0shows that its average yield over the last four years has been 2.76%. This means that if the stock price had that yield now it would be at $144.93. That implies a price target 26% higher than today.<\/p>\n\n\n\n<h2>MDC Holdings (MDC)<\/h2>\n\n\n\n<p><strong>MDC Holdings<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/mdc-stock-quote\/\"><strong><u>MDC<\/u><\/strong><\/a>) is a major home-building company whose stock is down over 32% YTD. Nevertheless, analysts still see the company making positive profits both this year and next.<\/p>\n\n\n\n<p>Estimates are for $10.41 per share this year and $10 next year. That puts the stock on a forward P\/E multiple of 3.8x times this year and 3.9x next year.<\/p>\n\n\n\n<p>Moreover, the company is still paying its dividend of $2 per share, well-covered by its earnings. This gives MFC a 5.10% dividend yield.<\/p>\n\n\n\n<p>That yield is significantly higher than the home builder\u2019s historical average over the past four years. The average has been 1.85%. So, if we divide its $2 dividend by 1.85%, the average price target is $56.18. That is more than 40% over today\u2019s price and shows that the stock is a good bargain now.<\/p>\n\n\n\n<h2>Goldman Sachs (GS)<\/h2>\n\n\n\n<p><strong>Goldman Sachs<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/gs-stock-quote\/\"><strong><u>GS<\/u><\/strong><\/a>) is a major investment banking firm that is now moving more into personal banking and consumer lending. The stock has been hit this year and is down over 18% YTD. As a result, the stock is now very inexpensive.<\/p>\n\n\n\n<p>For example, the stock is now trading on a forward P\/E of just 9.3x for 2022 and 8.5x for 2023. This implies that the company is forecast to show 9.5% earnings growth next year.<\/p>\n\n\n\n<p>Moreover, the bank now pays a dividend of $8 annually. It is likely to hike that dividend in the fall. So the stock now has a dividend yield of 2.47%. That is significantly higher than its average yield of 1.85% over the past four years.<\/p>\n\n\n\n<p>As a result, the stock now has a target price of $434.43, based on its average dividend yield. For example, if you divide the $8 dividend by 1.85%, its historical yield, (i.e., $8\/0.0185) the price works out to $434.43.<\/p>\n\n\n\n<p>That means that GS stock is worth at least 34% more than today\u2019s price. That makes it one of the top bargain growth stocks on this list.<\/p>\n\n\n\n<h2>KB Home (KBH)<\/h2>\n\n\n\n<p><strong>KB Home<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/kbh-stock-quote\/\"><strong><u>KBH<\/u><\/strong><\/a>) is a national home builder whose stock is now down 26% YTD. This makes the stock very inexpensive right now.<\/p>\n\n\n\n<p>For example, analysts forecast that earnings this year, although down from last year, will still reach $10.18 per share. This puts it on a forward P\/E multiple of just over 3.2x earnings.<\/p>\n\n\n\n<p>Moreover, the home builder still can afford a dividend of 60 cents, as it represents just 5.89% of its forecast earnings for 2022. In addition, at $32.42 per share, the stock now has a healthy dividend yield of 1.85%. Clearly, the company could afford to pay a higher payout ratio, which would also raise its dividend yield.<\/p>\n\n\n\n<p>The market fears about a recession have forced this stock down to unprecedented valuation levels. For example, the average price target of 13 analysts surveyed by&nbsp;<em>TipRanks<\/em>&nbsp;is $38.67, or 22% over today\u2019s price.<\/p>\n\n\n\n<p>This shows that it is one of the best bargain growth stocks.<\/p>\n\n\n\n<h2>Ford (F)<\/h2>\n\n\n\n<p><strong>Ford<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/f-stock-quote\/\"><strong><u>F<\/u><\/strong><\/a>) is in the process of transforming into an all-electric car manufacturer. It is planning on splitting off its electric car holdings into a separate company. They are likely going to copy&nbsp;<strong>Tesla<\/strong>&nbsp;(NASDAQ:<a href=\"https:\/\/investorplace.com\/stock-quotes\/tsla-stock-quote\/\"><strong><u>TSLA<\/u><\/strong><\/a>) and some of its practices.<\/p>\n\n\n\n<p>However, despite the fact that the stock is down 41% YTD, its average P\/E for this year, based on estimates from analysts surveyed by&nbsp;<em>Seeking Alpha<\/em>, is just 6.7x.<\/p>\n\n\n\n<p>Moreover, for next year, the stock trades for just 6.3x earnings. That implies that analysts forecast earnings growth of 5.7% next year.<\/p>\n\n\n\n<p>In addition, Ford is now paying a dividend of 10 cents per quarter or 40 cents annually. That gives it, at $12.82 per share, a dividend yield of 3.12%. Moreover, the company can clearly afford the dividend. The 40 cents dividend is just 25% of the $1.59 EPS forecast for this year, and just 20.8% of the $1.92 EPS for next year.<\/p>\n\n\n\n<h2>Verizon (VZ)<\/h2>\n\n\n\n<p><strong>Verizon<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/vz-stock-quote\/\"><strong><u>VZ<\/u><\/strong><\/a>) is in the process of ramping up its 5G investments, but the company is still growing its earnings and cash flow. Right now analysts forecast Verizon earnings to rise 1.8% to $5.51 per share next year, up from $5.41 this year.<\/p>\n\n\n\n<p>This puts VZ stock on a forward P\/E multiple of just 8.2x this year, and 8.1x next year. Moreover, the $2.56 annual dividend is still less than half of the company\u2019s earnings (47%). It also brings investors in VZ stock an annual dividend yield of 5.76%.<\/p>\n\n\n\n<p>This yield is much higher than its average over the past four years, or 4.42%. In fact, if the price had the same yield now, it would be much higher. For example, if we divide $2.56 by 4.42%, the price target works out to $57.92. That is over 30% over today\u2019s price. This makes it one of the best bargain growth stocks.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>These bargain growth stocks have low valuations and high dividend yields These bargain growth stocks have low valuations and higher<\/p>\n","protected":false},"author":1,"featured_media":10437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[3431,888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10436"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10436"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10436\/revisions"}],"predecessor-version":[{"id":10438,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10436\/revisions\/10438"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/media\/10437"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10436"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}