These seven stocks have positive catalysts for future growth, on balance volume trending higher, positive Bollinger band price relevance, and PEG ratios of less than 1. The PEG ratio is a broadly-used indicator of a stock's prospective worth. It is preferred by numerous analysts over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued. Many financiers use 1 as the cut-off point for PEG ratios. A PEG of 1 or less is believed to be favorable. As Warren Buffett would say, "Price is what you pay, value is what you get."
All are up significantly over the last 52 weeks and some pay a dividend. These are bullish indicators regarding a stock's possible future performance. Moreover, several have had recent upgrades and positive analyst comments. Now that we have cut the wheat from the chaff, let's take a closer look to distinguish the driving factors behind these remarkable statistics.
Below is a detailed table with statistics regarding these stocks' summary information followed by a brief review of each company, a summary of current analysts' estimates and up/downgrade activity followed by a chart of the company's key statistics.
Superior Energy Services, Inc. (SPN) provides specialized oilfield services and equipment to serve the production and drilling related needs of oil and gas companies.
Superior Energy recently announced net income of $15.5 million, or $0.19 per diluted share on revenue of $414.0 million for the first quarter of 2011.These results are compared with net income of $21.5 million, or $0.27 per diluted share on revenue of $364.5 million for the first quarter of 2010.
Superior Energy recently announced that it will release its 2011 second quarter results on Wednesday, July 27, 2011, after the market closes.
The company is trading below analysts' estimates. SPN has a median price target of $44 by 11 brokers and a high target of $49. The last up/downgrade activity was on Sep 17, 2010, when Howard Weil downgraded the company from Market Outperform to Market Perform.
BioMarin Pharmaceutical Inc. (BMRN) develops and commercializes biopharmaceuticals for serious diseases and medical conditions.
For the company, 2010 was a key, foundation-building year in the next phase of growth. The company has expanded its commercial opportunities while continuing to advance key pipeline programs that have the potential to shape the company in the near future.
Highlights of the year include strong sales of commercial products, the launch of Firdapse (amifampridine phosphate) for LEMS in Europe, the acquisitions of LEAD Therapeutics and ZyStor Therapeutics, which added promising compounds to the pipeline and the continued advancement of several clinical and non-clinical programs.
The company is trading below analysts' estimates. BMRN has a median price target of $30 by 13 brokers and a high target of $35. The last up/downgrade activity was on Dec. 2, 2010, when UBS downgraded the company from Buy to Neutral.
Brookfield Properties Corporation (BPO) is a publicly owned real estate investment firm. The firm engages in the ownership, development, and management of premier commercial properties.
Brookfield recently announced the sale of the office tower at 1400 Smith Street in Houston to Chevron (CVX), 1400 Smith’s full-building tenant, and a 311,000-square-foot lease renewal with Chevron for seven years at neighboring Continental Center I (1600 Smith Street). The sale price of 1400 Smith was $340 million.
“This sale is reflective of our ongoing strategy of recycling capital from mature assets into more accretive opportunities,” said Ric Clark, chief executive officer of Brookfield Office Properties.
The company is trading below analysts' estimates. BPO has a median price target of $21 by 14 brokers and a high target of $25. The last up/downgrade activity was on May 6, 2011, when RBC Capital Mkts downgraded the company from Outperform to Sector Perform.
Reinsurance Group of America, Incorporated (RGA), an insurance holding company, engages in individual and group life, annuity, asset-intensive, critical illness and financial reinsurance in the United States, Canada, Europe, South Africa and the Asia Pacific.
Reinsurance Group of America recently announced it was named to the Fortune 500 list for the second consecutive year. RGA ranks No. 290, up from No. 321 in the previous year’s list. The annual list, which ranks U.S.-based companies by total revenue, will appear in the May 23 issue of Fortune magazine.
“RGA enjoyed excellent results in 2010, as we continued to meet the needs of our clients and deliver outstanding value to our shareholders,” said Greig Woodring, President and Chief Executive Officer of Reinsurance Group of America, Incorporated. “Our total revenue in 2010 of $8.26 billion represented an increase of nearly 17% from 2009.”
The company is trading below analysts' estimates. RGA has a median price target of $73 by 14 brokers and a high target of $80. The last up/downgrade activity was on July 28, 2009, when UBS downgraded the company from Buy to Neutral.
BlackRock, Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary and individual investors.
BlackRock, Inc. recently announced that it will report results for the second quarter of 2011 prior to the opening of the New York Stock Exchange on Wednesday, July 20, 2011.
BlackRock, Inc. recently announced that its Board of Directors has declared a quarterly cash dividend of $1.375 per share of common stock, payable September 22, 2011, to shareholders of record at the close of business on September 2, 2011.
The company is trading below analysts' estimates. BLK has a median price target of $73.50 by 6 brokers and a high target of $76. The last up/downgrade activity was on Aug 5, 2009, when Credit Suisse initiated coverage on the company with an Outperform rating.
ProAssurance Corporation (PRA), through its subsidiaries, provides professional liability insurance products primarily to physicians, dentists, other healthcare providers, and healthcare facilities in the United States.
ProAssurance recently highlighted rating actions by A. M. Best, which affirmed the financial strength ratings assigned to the ProAssurance Group and its subsidiaries.
The company is trading below analysts' estimates. PRA has a median price target of $73.50 by brokers and a high target of $86. The last up/downgrade activity was on Feb 25, 2011, when Wunderlich downgraded the company from Buy to Hold.
Goldcorp Inc. (GG) engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America.
Goldcorp is one of the world’s fastest growing senior gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.
Goldcorp recently declared its sixth monthly dividend payment for 2011 of $0.034 per share. Shareholders of record at the close of business on Thursday, June 16, 2011, will be entitled to receive payment of this dividend on Friday, June 24, 2011. Resident individuals who receive dividends from Goldcorp after 2005 are entitled to an enhanced gross-up and dividend tax credit on such dividends.
The company is trading significantly below analysts' estimates. GG has a median price target of $66 by 15 brokers and a high target of $77. The last up/downgrade activity was on Nov. 23, 2010, when HSBC Securities initiated coverage on the company with a Neutral rating.
Disclaimer: Information was gathered from CNBC, Yahoo Finance and respective company websites. Based on the current market conditions I would suggest scaling in to any position to reduce risk. I believe all these stocks provide significant opportunities for long term investors. Please use this information as a starting point for your own due diligence.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.