There are so many great companies being traded that get limited exposure. Yet there are others that are filled with so much useless coverage that a potential investor can't separate what's factual from opinion. Heavy coverage for a stock doesn't necessarily mean that it's a great company, but rather, that it's an interesting company with a high demand for the coverage. Therefore, this article will look at 6 stocks with limited exposure but have posted large gains over the last month with fundamental improvements. I will look at what caused each stock to rise during the last month, to determine whether or not the stock's gains have come to an end or are just getting started.
ABIOMED (NASDAQ:ABMD) has posted gains of 51% over the last month and is now trading near 52 week highs. Abiomed, Inc. is a provider of medical devices in circulatory support and offers a continuum of care in heart recovery to acute heart failure patients. The majority of the stock's large gains are a result of strong earnings which posted revenue of $29.48 million a gain of 26% year-over-year and net income of $600,000 compared to a loss of $3.2 million in 2010. The company's impressive earnings were a result of strong sales of its Impella heart pump products. Impella sales accounted for $24.8 million of the company's revenue which was a 40% year-over-year increase in sales. I am particularly bullish on this company after it reported the best quarter in its history. ABMD is now gaining momentum and appears to have a solid product in a large industry. Therefore, I expect ABMD to return large gains over the next few years as sales grow and it creates additional products to build on Impella's success with a strong balance sheet.
Align Technology (NASDAQ:ALGN) has posted gains of 41% over the last month and is near 52 week highs. The company designs, manufactures and markets the Invisalign system, a method for treating malocclusion, or the misalignment of teeth. The majority of the stock's gains were on October 28 after the company increased guidance, announced $150 million stock repurchase program and posted great earnings. The company posted revenue of $125.89 million a gain of 31% along with a net income gain of 15% year-over-year. The company had a break-out year in 2010, and is on pace to significantly outperform all fundamental measures in 2011. In fact, the only area that is lower is the company's margins, but because of its large revenue growth, it's still posting higher income. Therefore, with such strong growth and no signs of slowing down, this stock would make a great investment with gains that are just getting started.
CNH Global (NYSE:CNH) is a large construction company that has posted gains of nearly 30% over the last month. Much like the two companies above CNH Global's gains have come as the result of strong earnings. During the company's most recent quarter, it increased revenue by 30%, and posted an operating income profit gain of 92%, which means that margins increased as well. Yet despite the company's strong quarterly earnings and its last three years of gains, the stock is trading with a P/E, under 10 which is considerably low. Therefore, with a P/E so low and a company that is growing larger, I believe the stock presents value and is most likely to increase as the economy continues to improve.
FEI Company (NASDAQ:FEIC) is a supplier of instruments for nanoscale imaging, analysis and prototyping. The stock has gained 21% during the last month to post new 52 week highs after announcing solid earnings. During its most recent earnings report, the company posted revenue gains of 34% and increased net income by nearly 120%, which reflects much better margins as a result of lower costs. The company is on pace to post record earnings with exceptional growth in its Research & Industry segment, which grew 45% year-over-year and accounted for 36% of the company's total revenue. I believe that with strong growth within the company's segments, an increase in demand and better margins, the company is well-positioned for large gains over the next year. And with a large backlog and a solid balance sheet, I believe the stock has little risk and would make a great investment.
Stillwater Mining Company (NYSE:SWC) is a platinum & palladium producer that's posted a one month gain of 23% after strong earnings. The company posted earnings of $40.7 million compared to $5.9 million year-over-year and increased its revenue 77% on 130,000 ounces of production, which rose 6%. The strong gains and high margins were a result of higher production and higher prices of the metals that it produces. As an investor, SWC is very attractive; it trades with a P/E under 10 which should limit loss especially considering it's already lost 50% of its value since July despite its growth. I believe the reason for its loss was the declining prices of commodities during the months of August and September along with the stock's being 134% more volatile than the market. Although there may be some questions regarding the long-term growth and success of this company, I believe it's very undervalued considering its growth and I expect its fundamental progress will soon show itself through stock performance.
United Rentals (NYSE:URI) is an equipment rental company that consists of 531 rental locations in the United States and Canada. I have been quite bearish on this company over the last few years because of its declining revenue and a market that I felt was diminishing. However, for the first time, I am changing my position on the company, because now I believe that in an economy where companies are obtaining fewer assets and renting everything from real estate to equipment, to prevent toxic assets, I believe the company is well positioned for growth. The company has posted four consecutive years of declining revenue. However, the company is now on pace for its first year-over-year growth and has significantly improved its margins. The stock has posted gains of 22% after earnings sent the stock trending higher with revenue gains of 18% and income that gained nearly 300% year-over-year. The only problem that I foresee with this company is its debt-to-assets ratio, which is at 75%, since the company holds the debt that other companies don't want. Overall, I believe there is still upside to this stock and that investors should keep it on their watchlist.
Disclaimer: As with any investment, due diligence is required. The opinions in this article are not intended to be used to make a particular investment or follow a particular strategy but rather informational purposes only.