Sigma is undervalued with strong fundamentals; P/E expansion from 9 to 15 combined with 9% growth supports a potential 35% annual return.

Sigma, the healthc care services company, just started did very similar to what we saw earlier. it jumped their dividend significantly in 2021. Okay. So, when you're looking at dividend growth rate, again, you got a skewed number here.

You would have to shorten this to like a 4year or even, you know, four-year period. Now, you get some dividend growth that makes a lot it's a lot more reasonable.

This is a case of a stock that I think is very undervalued. It's a very high quality business. It's a minus rate. It has very manageable debt. It is expected to grow at a nice rate of about 9% going forward and you could buy it at an extremely low valuation.

So if this stock does this, then you could be making 35% a year. Now the dividend yield is 2.2. That's higher than some I've showed you. But again, how is that number that 35% coming up?

It's coming up from the fact that there's 9% growth. There's a 2% dividend. So that gets you, let's say, approaching 12%. But then you got a PE that's capable of expanding the starting point here, which is a PE of nine, expanding to 15.

And in this case, that's where you're going to get the bulk of your money, but you're also going to get decent dividend growth along the way.