This week’s scan looks for five stocks not well followed by Wall Street but whose share prices have had a great year. Within this group, we look for robust growth opportunities with strong earnings estimates and a high Zacks Rank.
While the companies in this scan have had an impressive run this year, they may offer additional upside if analysts take notice of their stock price performance and earnings potential and initiate coverage. Doing so would make these stocks visible to a much larger population of investors.
The screen and data are courtesy of Zacks.
- ROE TTM > 10%
- 1yr and 2yr EPS Estimate > 20%
- P/E < 25
- YTD Price Change > 10%
- Zacks Rank 1 or 2
- # of Brokers/analysts Following = 1
Our screen returned five companies, as shown below. Each of them only has one Wall Street analyst following them. Their stock prices are easily beating the market and are up more than 50% in three cases. Despite the recent price gains, the valuations (P/E) remain reasonable, if not very cheap, for two companies (VIST and SBOW). Further, the expected EPS growth for the next two years should help keep the P/E relatively low.
All the stocks have a Zacks Rank of 1 besides SBOW (2). The rank attempts to grade stocks on a scale of 1 to 5 (1 is best) based on their expected price change over the next three to six months. The model uses earnings estimate revisions and EPS surprises to calculate the score.
Company Summaries (all descriptions courtesy Zacks)
Bassett Furniture Industries (BSET)
Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high quality, mid-priced home furnishings. With over one hundred and thirty Bassett Furniture Direct stores, Bassett has leveraged its brand name in furniture with a network of licensed and Company-owned stores that focus on providing consumers with a friendly and professional environment for buying furniture and accessories. The Company continues to sell its products to other retailers, in addition to the Company s dedicated retail store program. Bassett s retail strategy promotes affordable custom-built furniture that is ready for delivery in the home within thirty days. The stores also feature the latest on-trend furniture styles, more than one thousand upholstery fabrics, free in-home design visits, and coordinated decorating accessories.
CBIZ Inc. (CBZ)
CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting, tax, financial advisory, government health care consulting, risk advisory, merger and acquisition advisory, real estate consulting, and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting, and executive recruitment. As one of the nation’s largest brokers of employee benefits and property and casualty insurance, and one of the largest accounting and valuation companies in the United States, the Company’s services are provided through nearly 100 Company offices in 32 states.
SilverBow Resources (SBOW)
SilverBow Resources, Inc. engages in the exploration, development and production of oil and natural gas properties. Its primarily project includes the Eagle Ford wells, Burr Ferry, South Bearhead Creek and Lake Washington fields. SilverBow Resources, Inc. is headquartered in Houston, TX.
Titan International (TWI)
Titan International, Inc. is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. The company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving construction, and consumer markets.
Vista Oil & Gas S.A.B. (VIST)
Vista Oil & Gas, S.A.B. de C.V. is engaged in the energy sector. It focuses on the identification, acquisition and development of oil and gas fields primarily in Mexico, Argentina, Brazil and Colombia. Vista Oil & Gas, S.A.B. de C.V. is based in Mexico.
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.