We pick TICC Capital Corp. (TICC) and Dollar General Corp. (DG) as two of the best stocks to buy at this moment for both of them has a favorable year-to-date gain of more than 20% and strong financial performance, suggesting an attractive investment opportunity.
TICC Capital Corp. operates as a closed-end, non-diversified management investment company providing capital to primarily non-public, small and medium-sized, technology-related companies. According to the data by FactSet, TICC stock got an “Overweight” rating from 6 six analysts. The consensus price target on TICC stock is $11.50, representing a 7.58% upside potential for the current TICC stock price of $10.69.
The company completed an underwritten public offering of 3,450,000 shares of its common stock at $9.65 per share and closed a $160 million collateralized loan obligation or CLO transaction in August. For the most recent quarter ended June 30, the investment company reported earnings of $0.37 per share, topping the consensus estimate of $0.28 per share by 32.10%. Analysts averagely estimate that TICC Capital will post earnings of $1.23 per share for the current fiscal year versus a year ago earnings of $0.96 per share.
TICC stock has a trailing P/E ratio of 14.78, a 13.32% premium over the peer group average of 12.99. TICC shares trade at a forward PEG ratio of 1.68, a 36.59% premium over the peer group average of 1.23. In view of the strong performance of TICC Capital, the stock price is reasonable.
In addition, TICC Capital pays a high dividend yield of 10.85%, along with its year to date gain of 23.58% in share price, making it one of the best stocks to buy at this moment.
Dollar General Corp. is a Goodlettsville, Tennessee-based discount retailer of consumables, seasonal, home products and apparel in the United States. According to the data by FactSet, DG stock got an “Overweight” rating from 26 six analysts. The consensus price target on DG stock is $58.68, representing a 13.72% upside potential for the current DG stock price of $51.60.
Dollar General reported its last quarterly earnings of $0.63 per share, beating the average analyst expectation of $0.59 by 6.78%. The chain operator plans to report its financial results for its fiscal 2012 second quarter ended August 3, on September 5. The company is expected to post earnings of $0.64 per share for this quarter, versus last year same period’s $0.52 per share. Dollar General expects to earn $2.77 to $2.85 per share for this fiscal year, up from the estimated range of $2.68 to $2.78 in June. Analysts averagely estimate that Dollar General to report earnings of $2.81 per share for the current fiscal year versus earnings of $2.37 per share for the prior year. In addition, the retailer also announced a $500 million of stock buyback program, beyond the $15 million remaining under a prior $500 million authorization.
DG stock has a trailing P/E ratio of 21.11, almost flat with the peer group average of 21.88. DG shares trade at a forward PEG ratio of 1.00, a 20.63% discount compared to the peer group average of 1.23. The two metics, along with the year-to-date advance of 23.14% in DG stock price, make this stock very attractive.