PRO articles cover stocks that fly under most investors' radar screens.
ENGlobal: Margin Expansion, Low Financing Costs, Increasing FCF, Buy The Dips
- ENGlobal's shares have seen over 200% growth in the last year, but recent pullbacks provide an excellent entry point. .
- Business restructuring and cost cutting measures have enhanced profitability while revenue has lagged. .
- Institutional investment remains low at 28%, but its starting to increase as more institutions take notice. .
- Debt repayments have dramatically reduced ENGlobal's financing costs and have eliminated any concerns form being too leveraged in debt.
- FCF continues to improve and the intrinsic value of its common stock suggests shares are trading at a steep discount once again.
IEC Electronics: Internal Restructuring, Low Risk Capital Structure, Undervalued By 25%-70%
- A high degree of specialization and wide breath of manufacturing capabilities has cultivated a strong position for IEC in the electronic contract manufacturing services industry.
- Internal restructuring is underway and will continue to serve as an underlying catalyst for future growth.
- IEC's efficient capital structure uses a low level of debt financing, which greatly reduces the risks associated with a high degree of financial leverage.
- IEC's earnings are improving, but the uncertainty behind future cash flows provides room for variability in its near-term intrinsic valuation.
- The firm-specific risks are not going away, but IEC's low correlation keeps total investment risk to a minimum and provides sound diversification from market risk.
Keyw Holding Corp: Attractive Fundamentals, 11.3% Expected Industry Growth, Shares Discounted By 40%
- Global cyber-security expenditures are expected to reach $120 billion by 2017, which implies the industry will grow at roughly 11.3% annually. .
- Strict regulations governing the procedures and processes behind managing sensitive information will continue to drive the demand for KEYW's cyber-security solution based products.
- A strong financial position and current WACC of less than 7% suggest its shares provide minimal exposure to risk..
- EBITDA guidance for FY 2014 places KEYW's valuation 40% higher than what the market currently has priced in..
- Pike Electric: Attractive Valuation, Low Volatility, Shares Offer 80-100% Upside Potential
- Rising Education Costs Will Drive Nelnet's Valuation Higher
- 7 Reasons Why Arabian American Development Co. Will Continue Rewarding Shareholders
- Expect More Value With Terex's Growth Ahead
- Western Asset Mortgage Capital: Low Effective Duration, 23% Dividend Yield, Favorable Near-Term Upside
- Energy Services Of America's New Capital Structure Reinforces Growth Potential
- Dynavax Technologies: 6 Reasons To Buy
- Energy XXI's Increasing DOL Produces Earnings Volatility, But Valuation Remains Attractive
- Southcross Energy: Visible Growth Options, Cash Rich Clientele, Shares Offer 30% Upside Potential
- Take Advantage Of Advantage Oil And Gas, But Mind The Risks
- Income Investors Watch Out, FutureFuel Has A Bright Future Ahead
- MFA Financial: A Restructured Portfolio, Lower Effective Duration, Less Derivative Hedges, The High Yield Will Continue
- Glatfelter's Had Quite The Run, What's Next?
- Santarus' Impressive Margins, High ROIC, And Low Financial Risk Boost Upside Potential
- Clearone Communications: A Year Later, Zero LT-Debt, Improving Margins, The Upside Continues
- Arabian American Development Co.: Lucrative Resources, Low Debt, 60%-70% Near-Term Upside
- Flexible Solutions: Increasing Revenue, Low Beta, Potential 60% Near-Term Upside
- ENGlobal: A Deeply Undervalued High Reward Growth Play
- 7 Reasons To Buy Domtar Corporation
- Rocky Brands: An Undervalued Growth Prospect With An Improving Cost Structure And New Dividend Policy
- American Arabian Development Co Commands A Higher Valuation
- Energy Services Of America Is A Speculative Buy
- Keyw Holding Corporation: Acquisitions And Future Growth Ahead