The following companies all experienced loss during the last month. While these companies are all different, each offer the same level of value with limited downside. Although these stocks may experience additional loss in the near future, the long term gains will greatly exceed any short term loss. Below are 5 stocks that should be considered as a value to any portfolio.
VistaPrint NV (VPRT) has seen loss in excess of 35% over the last month. The company announced earnings on July 29 which reflect revenue growth of 27% and net income of $14.4 million over $11.7 million year over year. This financial report caused the stock to decline along with guidance below analyst expectations. The company has increased revenue, EPS, and assets each year over the last 5 years. In addition, the company has eliminated it's total debt during the last 5 years and currently have no debt. The company announced potential EPS of $5 and revenue of $2 billion by 2016 which show the company expects continued growth over the next several years.
I believe this stock is offering investors the perfect buying opportunity, regardless of how the markets feel about the company not meeting EPS expectations. Revenue is growing at the same rate and EPS has increased year over year, and is projected to continue. I expect P/E to increase along with earnings, making the current price of $28.35 a bargain for any investor.
Valhi, Inc. (NYSE:VHI) has regained most of the loss during it's downtrend, but still offers a good opportunity to buy. The stock was trading near all time highs before the market sell off took the price under $36. The company released earnings on August 4 with a 41% increase in sales year over year. The company continued its streak of increased earnings with an EPS of 0.46 compared to 0.04 year over year. The company is on track to post its best financial year by far, as the company has seen a 37% increase in sales over the first two quarters, compared to last years first two quarters.
The company is showing no signs of slowing down and at current prices, this stock is a buy. The stock was trending to all time highs before the sell-off and I expect the stock to reach 52 week highs and continue its trend upwards.
Travelzoo Incorporated (NASDAQ:TZOO) has seen a monthly loss of more than 35% which was initiated after the company announced earnings below estimates of $39 million with EPS of $0.38. Travelzoo is a company that was trading with a great deal of promise. Investors were trading the company much higher than earnings, while anticipating future growth because of a promising 1st quarter. The stock reported amazing growth during Q1, investors expected it to continue and the company gave all indications for investors to be optimistic. I am personally happy about the company's current position and while Wall Street considered the quarter a bust, I see promise.
During the quarter, revenue grew from $28.1 million to $37.6 million, and EPS increased by 50% year over year. The company expanded into 27 new markets which cost money and take time to properly develop. Travelzoo has expanded into new markets at an unbelievable rate and I expect the company to see the benefits from these markets in the upcoming quarters. Travelzoo's income statements and balance sheets have increased in almost all major categories during the last 3 years. The company is on track to post its best year yet with no debt hanging over its shoulder. At $46.75, nearly 50% of its 52 week high, I see this company as a strong buy. The earnings were good, the company just did not grow at a rate wall street expected. The new markets have had time to develop and I expect next quarter earnings to blow away any possible expectation that analysts could imagine.
Acura Pharmaceuticals (NASDAQ:ACUR) is a small cap stock whose price action has been rather surprising. The company has lost 32% of its value over the last month and even more following the approval of Oxecta. The company teamed with Pfizer (NYSE:PFE) to develop Oxecta a narcotic drug used to treat pain that is resistant to drug abuse through Acura's AVERSION technology. The approval was announced on June 20th and the stock closed at $4.50 and has since decreased to $2.55. I believe this technology could be revolutionary as the cost of addiction impacts many different areas of life.
The approval of Oxecta marks the first approval of 4 drugs that Pfizer hopes to sell using the AVERSION technology. The AVERSION technology discourages the common methods of abuse with opiate drugs. As a former employee of the Department of Corrections, I had access to various pieces of information. I remember speaking with our physicians who explained to me that doctors estimate that 25% of all patients in the Emergency Room are seeking narcotics. This effects the way a person is treated by physicians as there would be a stigma attached to treatment. Drugs such as Oxecta, have the potential to change the way narcotics are prescribed.
I strongly believe this drug will become a primary choice for physicians as fear of potential abuse can be controlled. The potential sales of this drug and future drugs alike are limitless. I doubt Acura will have a $115 million cap 3 years from today. I believe the company will experience tremendous growth in the immediate future as Pfizer will be marketing this drug and Pfizer has proven itself to be amongst the best in terms of marketing. I would not be surprised to see Acura as one of the fastest growing companies during the year of 2012, making its current price of $2.55 a bargain.
F5 Networks (NASDAQ:FFIV) has lost 25% of its market cap during the last month. This was a result of market conditions and earnings released on July 20. I can find no way to justify a 25% loss in this companies value, if anything this company should have seen more gains. Earnings posted revenue of $290.7 million which continues the streak of more than 5 consecutive quarters of growth and a 26% increase year over year. Net income increased 40% year over year which also grew from the previous quarter.
This company has posted revenue that has increased each of the previous 5 years. In 2010, EPS was at its highest and 2011 is expected to post an increase of significant gains. The company has no debt and has given no guidance to insinuate any slow down of growth. The stock is more than 40% from its 52 week high of $145.76 and I believe the company could reach this price very soon. As the markets rise, investors should buy this stock which shows nothing but promise of growth. I have no doubt this stock will provide excellent returns during the next several years.