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I have searched for highly profitable growth stocks that are in a short-term uptrend, in a mid-term uptrend and in a long-term uptrend. Stocks in an uptrend are performing well and are in a buying mode. Those stocks would also have to show a very low forward P/E ratio and an extremely low debt.

I introduced in the finviz.com Screener the following demands:

  • Forward P/E - Under 15
  • Total debt to equity - Under 0.1
  • EPS growth Past 5 years - Over 25%
  • EPS growth next 5 years - Over 10%
  • 20-Day Simple Moving Average - Price above SMA20
  • 50-Day Simple Moving Average - Price above SMA50
  • 200-Day Simple Moving Average - Price above SMA200

As a result, only eleven stocks came out as shown in the tables below. In this article, I describe the three stocks with the lowest P/E ratio among the eleven stocks. In my opinion, these stocks can reward an investor a nice capital gain. I recommend readers use this list of stocks as a basis for further research. All the data for this article were taken from Portfolio123, finviz.com and Yahoo Finance, on October 26, 2013.

Rank

Ticker

Name

Last Price

Market Cap $million

Industry

1

(NASDAQ:KLIC)

Kulicke & Soffa Industries

13.15

989

Semiconductor Equipment & Materials

2

(NASDAQ:CRUS)

Cirrus Logic Inc.

25.04

1,590

Semiconductor - Specialized

3

(NYSE:CFI)

Culp Inc.

19.80

241

Textile Industrial

4

(NASDAQ:APEI)

American Public Education,

38.53

680

Education & Training Services

5

(NYSE:GCO)

Genesco Inc.

69.29

1,610

Apparel Stores

6

(NASDAQ:MYRG)

MYR Group, Inc.

26.10

542

General Contractors

7

(NASDAQ:QCOR)

Questcor Pharmaceuticals

68.40

4,030

Biotechnology

8

(NASDAQ:FINL)

Finish Line Inc.

25.43

1,230

Specialty Retail, Other

9

(NASDAQ:GPIC)

Gaming Partners International Corporation

8.35

66

Toys & Games

10

(NYSEMKT:BTN)

Ballantyne Strong, Inc

4.96

69

Photographic Equipment & Supplies

11

(NASDAQ:CSCD)

Cascade Microtech Inc.

10.87

156

Semiconductor Equipment & Materials

(click to enlarge)

Kulicke & Soffa Industries, Inc.

Kulicke & Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools to assemble semiconductor devices.

Kulicke & Soffa has no debt at all, and it has $6.76 a share in net cash. The trailing P/E is very low at 10.27 and the forward P/E is also very low at 9.86. The PEG ratio is very low at 0.76, and the average annual earnings growth estimates for the next five years is quite high at 13.5%. The price to free cash flow is very low at 8.27, and the current ratio is very high at 7.50.

The KLIC stock price is 7.24% above its 20-day simple moving average, 12.24% above its 50-day simple moving average and 14.70% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Most analysts recommend the stock. Among the three analysts covering the stock two rate it as a strong buy, and one rates it as an underperform.

Kulicke & Soffa has recorded strong revenue and EPS growth, during the last three years, and the last five years, as shown in the table below.

Source: Portfolio123

The tables below emphasize Kulicke & Soffa's superior margins, return-on-capital and stock valuation parameters over the industry median, the sector median and the S&P 500 median.

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Source: Portfolio123

Kulicke & Soffa will report its latest quarterly financial results on November 06. KLIC is expected to post a profit of $0.41 a share

On July 30, Kulicke & Soffa announced its fiscal third quarter 2013 results, which beat EPS expectations by $0.11 and beat on revenues.

Third-Quarter Fiscal 2013 Financial Highlights

  • Net revenue of $141.2 million.
  • Gross margin of 46.7%.
  • Net income was $18.9 million or $0.25 per share.
  • Cash and cash equivalents were $508.5 million as at June 29, 2013.

In the report, Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said:

Revenue for the third fiscal quarter exceeded the high end of our guidance range. This sequential growth reflects a higher proportion of sales to our top 5 customers, along with a broader recovery of the sector. We are encouraged by our ability to maintain our cost structure while also maintaining our gross margins at 46.7%, above our trailing 3 year average of 46.0%. This reflects our brand premium and technology leadership in the market place, and also our highly responsive, scalable operating model.

Kulicke & Soffa has recorded strong revenue and EPS growth, and it has strong earnings growth prospects. Considering KLIC compelling valuation metrics, and the fact that the stock is in an uptrend, KLIC stock can move much higher.

Risks to the expected capital gain include a downturn in the U.S. economy, and weakness in the consumer electronics market.

(click to enlarge)

Chart: finviz.com

Cirrus Logic Inc.

Cirrus Logic, Inc., a fabless semiconductor company, develops analog and mixed-signal integrated circuits for a range of consumer and industrial markets.

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Cirrus Logic has no debt at all, and it has a very low trailing P/E of 11.38 and a low forward P/E of 13.86. The PEG ratio is very low at 0.76, and the average annual earnings growth estimates for the next five years is very high at 15%. The price to free cash flow is very low at 10.00, and the current ratio is very high at 6.50.

The CRUS stock price is 5.12% above its 20-day simple moving average, 9.82% above its 50-day simple moving average and 13.58% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Cirrus Logic has recorded very strong revenue and EPS growth, during the last year, the last three years, and the last five years, as shown in the charts below.

(click to enlarge)

Source: company presentation

The tables below emphasize Cirrus Logic's superior growth rates, margins, return-on-capital and stock valuation parameters over the industry median, the sector median and the S&P 500 median.

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Cirrus Logic will report its latest quarterly financial results on October 28. CRUS is expected to post a profit of $0.60 a share.

Cirrus Logic has recorded very strong revenue and EPS growth, and it has strong earnings growth prospects. Considering CRUS compelling valuation metrics, and the fact that the stock is in an uptrend, CRUS stock can move much higher.

Risks to the expected capital gain include a downturn in the U.S. economy, and weakness in the consumer electronics market.

(click to enlarge)

Chart: finviz.com

Culp, Inc.

Culp, Inc. manufactures, sources, markets, and sells mattress fabrics and upholstery fabrics to the furniture and bedding industries in North America and internationally.

Culp, Inc. has a very low debt (total debt to equity is only 0.07), and it has a low trailing P/E of 13.56 and a very low forward P/E of 11.89. The PEG ratio is extremely low at 0.59, and the average annual earnings growth estimates for the next five years is very high at 23%. The forward annual dividend yield is at 0.81%, and the payout ratio is only 9.40%.

The CFI stock price is 5.67% above its 20-day simple moving average, 5.61% above its 50-day simple moving average and 13.19% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Analysts recommend the stock; both analysts covering the stock rate it as a strong buy.

Culp, Inc. has recorded very strong EPS growth, and moderate revenue growth during the last year, the last three years, and the last five years, as shown in the charts below.

Most of Culp's stock valuation parameters have been better than its industry median, sector median and the S&P 500 median, as shown in the table below.

(click to enlarge)

Culp, Inc. will report its latest quarterly financial results in November. CFI is expected to post a profit of $0.33 a share.

Culp, Inc. has recorded very strong EPS growth, and it has strong earnings growth prospects. Considering Culp's compelling valuation metrics, and the fact that the stock is in an uptrend, CFI stock can move much higher.

(click to enlarge)

Chart: finviz.com

Source: 3 Growth Stocks With A Very Low Forward P/E Ratio Currently In An Uptrend