PRO articles cover stocks that fly under most investors' radar screens.
Zulily: Reset Expectations On This Growth Story Create Substantial Opportunity
- E-commerce flash sales leader continues to be a phenomenal growth story with a massive addressable market.
- Stock is 80% off its highs post IPO and 40% below its IPO price.
- Valuation, cash hoard, and FCF generating ability, and reset expectations make this a top pick.
Hhgregg: Important Nuggets From A Noisy Earnings Report
- Headline earnings were marred by asset impairments related to the performance of certain stores.
- Business model is being finally being analyzed in a way that will drive out significant costs.
- Consumer electronic tailwind from television upgrade cycle has finally arrived which will drive material improvement.
Sears Hometown And Outlet Stores: Getting Ready For Lift-Off
- Company continues to be ignored by investment community giving investors a great opportunity to buy.
- Valuation and opportunity for growth provide greatest risk/reward profile of any stock I follow.
- Earnings should report the week of March 9th providing the next catalyst.
KB Home: Stay Away For Now
- The Q4 2014 earnings report and conference call highlight structural issues facing the company.
- The rest of the housing industry is separating itself from KB in terms of performance on key metrics.
- Further clarity needed on long-lived land assets before investors can step back into this stock.
Top Retail Value Play Heading Into 2015: Sears Hometown And Outlet Stores
- Valuation across numerous metrics supports shares being woefully undervalued.
- Continued closing of Sears mall based stores to benefit Hometown and Outlet.
- Enormous growth opportunity in store count make this asset light dealer owned/franchise model a tremendous opportunity to see a double on this investment in 2015.
hhgregg: Industry Dynamics And Expectation Reset Should Lead To Over 50% Short-Term Upside
- Company is a misunderstood retailer that has lost favor due to declining same store sales driven by management blunders and a dismal consumer electronics environment.
- Shift in focus to selling big box items and a looming product cycle refresh in the TV market will provide significant tailwinds over coming months.
- Pristine balance sheet will allow for the time needed to prune the low hanging fruit and a revamped management team with PE industry ties provides additional opportunity for upside.
Beazer: Back In The Bargain Bin
- Beazer stock down almost 30% over the last month.
- Company is executing on its plan to improve leverage and return to profitability.
- Previous forward estimates from analysts proved to be incorrect and it appears FY 2015 estimates are off the market as well.
LeapFrog: Product Cycle Refresh Provides The Road Map For Substantial Upside
- LeapFrog stock has been beaten down due to an inventory glut that is a temporary problem.
- New product releases scheduled for the balance of the FY should have investors looking back to what happened when LeapFrog first introduced the LeapPad.
- Company maintains a pristine balance sheet and should generate acquisition overtures or an activist investor could step in to create value for shareholder.
ArcBest: 20% Earnings Related Decline Presents A Great Entry Point For Investors
- ArcBest fell over 20% after reporting substantial revenue growth with a noisy EPS number that missed expecations.
- The company is now experiencing significant revenue and EBITDA growth and short-term operational efficiency growing pains will not persist.
- 30% upside for ArcBest in the next 12 months.
Taylor Morrison: Valuation Extremely Compelling
- 25% decline by the stock during July presents attractive entry point.
- Well capitalized and positioned company in housing markets that have strong long-term attributes.
- Earnings could be catalyst for next move higher.
MDC Holdings Has Become Both A Value Stock And Dividend Yield Opportunity
- Homebuilder continues to trade at housing crisis-level valuations.
- Currently paying an annual dividend yielding ~3.75%.
- Rare opportunity for material stock appreciation while enjoying safe dividend yield.
Why D.R. Horton's Q3 2014 Earnings Are Cause For Concern
- Horton stock slammed on weak headline EPS numbers.
- Earnings call and underlying business trend shift provide real cause for concern.
- Additional downside likely for the nation's largest builder of new homes.
Move, Inc: The Unlikely Winner If Zillow Buys Trulia And The "Zillia" Monster Emerges
- Rumored Zillow acquisition of Trulia has ignited shares of both subject companies.
- MOVE valuation is materially lower than the aforementioned competitors based on almost every metric.
- Expect a backlash from the Real Estate industry against a Zillow and Trulia merger to benefit MOVE.
The St. Joe Company: Special Situation With Potential Significant Capital Return
- Earnings headlines in early May 2014 will provide a shock and awe moment that should move the stock higher.
- The stock is down ~20% since announcing in late 2013 the contract for a land sale generating over $500M in cash proceeds.
- The likelihood of the company initiating either a significant stock buyback or one-time dividend is very high.
MDC Holdings: Value Can Only Be Ignored For So Long
- MDC is trading at the lowest price to book value of any small or large cap homebuilder.
- The company is set up to once again beat earnings estimates when it reports May 1st.
- Looking for a 10-15% upside move in the next 2 weeks on the back of industry wide earning strength.
KB Home: Recent Earnings Report Flips This Bear To A Bull
- 30% upside seen in FY 2014 based on multiple upcoming catalysts.
- KB's investment in land over the last 24 months has paved the way for significant revenue and EPS growth.
- Company has effectively managed its cash and debt balances through the reinvestment cycle and is now poised to reap the rewards.
- William Lyon Homes: Land Heavy West Coast Builder Set To Smash Estimates
- Rentrak: Is The Company Still A Buy After A 60% Move Higher?
- Shutterstock: Latest Price Action Should Leave Investors Scratching Their Heads
- Outerwall: Long Thesis Remains Intact And Sell-Off Represents Opportunity
- USG Corp: This Warren Buffett Favorite Is Primed For Explosive Earnings Growth
- Ryland Homes: What To Do Now That The Stock Is 30% Off Its Highs
- Taylor Morrison: Noisy Quarter Post IPO Clouds Significant Operational Gains
- Mea Culpa: Beazer Homes May Be Best Speculative Play In Homebuilding
- MDC Q2 2013 Earnings: The Fallacy Of Following The Headlines
- UCP Inc: Hybrid Real Estate Play Offers The Most Short-Term Upside In Real Estate
- KB Home: Large Amount Of Idle Land Inventory And Debt
- Coldwater Creek: A Potential Lotto Ticket In The Retail Sector
- The Fresh Market Growth Story Is High Risk
- Shutterstock Valuation Makes Me Shudder
- Carter's: Good Business But More Than Fully Valued
- Ingles Markets Could Be In Play After Harris Teeter Acquisition