Shares of certain quality companies seem to get cheaper by the day. Many in the market are now perhaps too scared to own shares that are 'priced for perfection', which rely on high earnings growth to justify their valuations.
This makes sense in a lot of cases. But there are a few quality names that are starting to look like good value. Here's two to consider…
Bapcor Ltd (ASX: BAP)
Shares of the automotive parts distributor are down around 15% in the last couple of weeks alone, while the underlying business is still doing well. The company's latest result showed strong revenue growth of 22% and earnings per share growth of 32%.
Bapcor's sales figures continue to be solid, with retail stores achieving same-store sales growth of 4.4%. The company plans to increase the store count over the next few years to eventually reach 200 stores, from 128 today.
Electric vehicles are a risk here due to the lower amount of parts involved in these vehicles, but that seems to be a long way from making a dent in Bapcor's business. Bapcor shares currently trade on around 20 times earnings, which seems cheap for a company continuing to grow earnings at double-digit rates.
Orora Ltd (ASX: ORA)
Shares of the packaging and visual communications company are down around 20% from the high earlier in the year. The company continues to grow sales and earnings in both Australasia and North America. It is reinvesting into new plant and equipment, making capital allocation decisions with a strong focus on returns.
I like that Orora's business tends to have continuous demand throughout the cycle, so earnings are more predictable over time compared to the likes of Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP).
Since being spun-off from its parent company Amcor Limited (ASX: AMC) 5 years ago, earnings and dividends have grown at an average rate of 12% per annum, and 13% per annum, respectively. Orora shares currently trade on around 18 times earnings and a dividend yield of 4.2% which is 30% franked.
Foolish takeaway
Both companies look equally attractive at today's prices. Each is a reliable business with growing earnings and dividends.
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