Today, we have shortlisted the following stocks across sectors which are expected to register strong growth during 2014 and 2015 and appear to be undervalued offering an attractive investment opportunity. We have picked stocks which are estimated to report growth in sales and EPS of over 10% in 2014 & 2015. Moreover, these stocks have registered significant growth in sales and EPS during 2013. We note that these stocks are currently trading at relatively low 1-Yr-forward PE multiple compared to their respective indices and have strong return on equity (ROE). During the past three months, a majority of the shortlisted stocks have accumulated gains with 3 month average daily traded volume in excess of 100,000 shares.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
Sales Growth |
Sales Growth |
Sales Growth |
EPS Growth |
EPS Growth |
EPS Growth |
1Yr- Fwd PE |
Return On Equity |
|
Bally Technologies |
NYSE |
BYI |
2.6 |
65.79 |
719,157 |
0.6% |
13.3% |
21.8% |
11.7% |
50.2% |
24.1% |
13.2% |
15.4 |
55.4% |
|
Labrador Iron Ore Royalty |
TSX |
LIF |
1.9 |
30.20 |
286,417 |
-3.9% |
12.3% |
20.7% |
11.7% |
50.3% |
11.0% |
10.6% |
11.7 |
27.4% |
|
Home Capital Group |
TSX |
HCG |
3.3 |
47.56 |
238,672 |
6.4% |
7.0% |
12.5% |
16.7% |
15.6% |
13.4% |
13.2% |
11.5 |
23.6% |
|
AmTrust Financial Services |
NASDAQ |
AFSI |
3.2 |
42.69 |
610,696 |
10.8% |
61.7% |
43.9% |
11.2% |
75.5% |
30.8% |
11.2% |
9.6 |
22.9% |
|
Portfolio Recovery Associates Inc |
NASDAQ |
PRAA |
3.0 |
58.96 |
418,391 |
2.7% |
24.0% |
17.0% |
13.2% |
40.1% |
11.4% |
16.0% |
15.0 |
21.4 |
|
Phoenix New Media |
NYSE |
FENG |
0.9 |
11.09 |
609,197 |
7.5% |
28.2% |
21.8% |
23.2% |
166.7% |
14.1% |
24.6% |
15.9 |
19.6% |
|
Wesco Aircraft Holdings Inc |
NYSE |
WAIR |
2.0 |
20.39 |
355,659 |
-6.8% |
16.2% |
51.5% |
26.3% |
12.0% |
10.1% |
23.2% |
15.2 |
12.3% |
|
Perficient Inc |
NASDAQ |
PRFT |
0.7 |
19.15 |
176,850 |
1.7% |
14.1% |
20.2% |
10.3% |
31.5% |
18.5% |
17.1% |
14.6 |
7.9% |
|
Maiden Holdings Ltd |
NASDAQ |
MHLD |
0.9 |
11.99 |
418,154 |
-8.2% |
11.1% |
11.2% |
12.0% |
89.1% |
24.3% |
20.4% |
8.2 |
6.9% |
|
Ares Commercial Real Estate Corp |
NYSE |
ACRE |
0.4 |
12.77 |
192,280 |
-4.1% |
410.5% |
103.1% |
52.7% |
2,300.0% |
110.4% |
23.3% |
13.5 |
6.7% |
|
Rowan Cos Plc |
NYSE |
RDC |
4.0 |
32.55 |
2,011,678 |
-0.1% |
13.4% |
16.6% |
32.9% |
23.6% |
19.4% |
84.6% |
14.0 |
5.1% |
Source: Bloomberg
Market Cap & Last Price are in their respective currencies
Company Description:
Bally Technologies Inc (NYSE: BYI)
Bally Technologies Inc. designs, manufactures, distribute gaming devices, systems, and technology solutions worldwide. The company’s product line includes slot machines, video slots, wide-area progressives and Class II, lottery and central determination games and platforms. Bally’s offers casino management, slot accounting, bonusing, cashless and table management solutions.
Labrador Iron Ore Royalty Corp (TSX: LIF)
Labrador Iron Ore Royalty Corp is an unincorporated open-ended trust. The company, through its subsidiaries, holds an overriding royalty on all iron ore products produced, sold, delivered, and shipped by Iron Ore Company of Canada.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. is a holding company operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, and credit card issuing services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, and British Columbia.
AmTrust Financial Services Inc (NASDAQ: AFSI)
AmTrust Financial Services, Inc. offers insurance coverage. The company offers property/casualty, workers’ compensation, special risk, and warranty insurance, and extended service plans. The company operates in the United States and the European Union, and reinsures risk worldwide.
Portfolio Recovery Associates Inc (NASDAQ: PRAA)
Portfolio Recovery Associates, Inc. provides outsourced receivables management. The company purchases, collects and manages portfolios of defaulted consumer receivables.
Phoenix New Media Ltd (NYSE: FENG)
Phoenix New Media Ltd. is a new media company the provides premium content on an integrated platform across Internet, mobile and TV channels in China. The company enables consumers to access professional news and other information and share user-generated content on the Internet and through their mobile devices.
Wesco Aircraft Holdings Inc (NYSE: WAIR)
Wesco Aircraft Holdings, Inc. provides supply chain management services to the global aerospace industry. The company also provides hardware, bearings, tools, electronic components, and machined parts. Wesco’s services include just-in-time delivery, long-term agreements, management of supplier relationships, inventory management, quality assurance, and kitting.
Perficient Inc (NASDAQ: PRFT)
Perficient, Inc. is an information technology consulting firm. The Firm designs and delivers business-driven information technology solutions, such as business analysis, portal, content management, business integration/SOA, commerce. business intelligence and customer relation management (CRM). Perficient serves clients from a network of domestic and global locations.
Maiden Holdings Ltd (NASDAQ: MHLD)
Maiden Holdings Ltd., through its subsidiaries, focuses on providing non-catastrophic, customized reinsurance products and services. The company offers its services to small and mid-size insurance companies in the United States and Europe.
Ares Commercial Real Estate Corp (NYSE: ACRE)
Ares Commercial Real Estate Corp. is a newly organized specialty finance company. The company is focused on originating, investing in and managing middle-market commercial real estate loans and other commercial real estate, or “CRE-,” related investments.
Rowan Cos Plc (NYSE: RDC)
Rowan Companies plc provides international and domestic contract drilling services. The company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.
