Since the beginning of the year, the S&P 500 dropped 6.8%. Just the last couple months, and even the last several days, the stock market has been performing miserably. But amazingly, there are over 60 stocks that have outperformed the S&P 500 by over 50%. How do these companies do it?
Three of those stocks have either no debt or very low debt, have price to earnings ratios below 15, and have market caps over $1 billion. SanDisk Corp. (SNDK) has performed admirably, up 40.7% year to date. The manufacturer of NAND-based flash storage memory card products has a PE ratio of 11.7, and a price earnings growth ratio of a very favorable 0.69. (Remember, below 1 means that the stock is underpriced, over 2 means the stock is over-priced.) Revenues for the latest reported quarter were up about 65%. Although the stock was down 28 cents yesterday, it jumped 1.81 in the aftermarket.
Impax Laboratories Inc. (IPXL), a pharmaceutical company that produces bio-equivalent and brand-name drugs, is up 40.7% for the year. The stock sports a great P/E ratio of 6.85, and a very nice PEG ratio of 0.78. The company has no debt. Revenue growth for the latest quarter was up an amazing 448.8% and earnings grew year-over-year, by an outrageous 5,825.4%.
The Children's Place Retail Stores, Inc. (PLCE) is up 40.3% since the beginning of January. This debt-free children's specialty apparel retailer carries a P/E of 14.7 and a reasonable PEG of 1.19. The company just reported earnings a few days ago; earnings up 18.7% on a 5% revenue increase.