All feedback and comments very welcome
Value Stocks Caterpillar (CAT) is poised to deliver earnings per share growth of more than 30 percent this year according to a analysts, while the firm projects peak earnings of $16 per share four to five years from now. Currently priced at $150 the stock trades on a forward PE of less than ten. With Caterpillar's mining and construction markets around the world showing signs of a turnaround, thats a multiple that may appeal to value investors.
Cemex (CX) is technically a Mexican cement company but with 50% of assets in the US and the financials based in dollars its about as American as almost any stock on the NYSE. The Mexican connection has held back CX as other construction companies have benefited from a strong US economy and increased Federal spending plans. But Merrill Lynch has said that all that political risk is more than priced in and that a weak dollar and strong growth in the US, Europe and the Philippines will "drive strong earnings". With the stock down 30% over the past year and a TTM PE of 12.9 it looks pretty cheap
Insider Buying With the stock down nearly 40% DDR Corp (DDR) and yielding 10% director Alexander Otto has been snapping up stock with 7 purchases this year totaling about $40mn. Mr Otto is from the Otto dynasty that owns c.80 million square feet of U.S. office space and European shopping malls. His father Werner started the business back in 1949, so Alexander is well connected and, more importantly, seems comfortable enough with DDRs strategy and valuation to make numerous purchases in quick succession.
He’s not the only one, SumZero have given DDR a target price of $12 (compared to current stock price of $7.30). They are not the only contrarian investors out there supporting retail assets. Hedge funds and analysts are increasing beginning to realise that the demise of some retailers does not mean the end of retail malls and assets. Mall owners have shown ability to repurpose malls to bring in new retailers and reposition the real estate for new experiences such as movie theaters, child zones, and restaurants. That means that there is value and insiders, hedge funds and others are snapping up assets on the cheap.
Growth Stocks Solaredge Technologies (SEDG) has reported earnings growth of 40% for years so it’s not surprising that it trades on a lofty TTM PE of 30. In 2017 earnings grew 65% and SEDG Chairman and CEO, Guy Sella, said he was sure the company could maintain the trajectory of growth in 2018. The level of solar power generation is rising rapidly and the company has issued guidance for 70% sales growth in Q1 2018. With consensus 2018 estimates of $2.96, if the stock achieves that (reasonable) PE multiple of 30, it would see the stock rise an impressive 60% to $88.
DLH Holdings (DLHC) provides professional healthcare and public services to Government agencies and has seen steady exponential growth over the past 5 years. EBITDA has been growing by 100% annually. Looking ahead, management remain optimistic about the pipeline. In particular DLH, which offers drug and alcohol counseling services, could see expanded funding to fight opioid abuse. Given rapid growth the TTM PE of 16.8 and forward 2018 PE 12.5 looks very cheap. (please be aware this is a high risk microcap stock)
For the record, I don’t own these stocks. I am not being paid to write this. I am not a bot. I just found the ideas interesting. This post is not a recommendation to buy or sell any security or derivative. Stocks are not suitable for all investors. Please do your own research.
Submitted April 13, 2018 at 01:39PM by InterestingNews1 https://ift.tt/2GYfrDj
