Thursday, July 16, 2015

Top 10 Cheap Companies For 2015

The economy is showing signs of fumbling the recovery.

For starters, mortgage rates are starting to creep higher. The 30-year rate is closing in on 4%, making it the highest level in a year. As cheap financing dries up, where do you think housing prices and the purchase of other big-ticket items will go?

The news isn't just iffy on the macro level. There are also more than a few companies that aren't pulling their own weight in this supposed economic recovery.

There are still plenty of names that aren't growing their earnings. Let's go over a few of the companies that are expected to go the wrong way on the bottom line next week.

Company

Latest Quarter EPS (estimated)

Year-Ago Quarter EPS

lululemon athletica (NASDAQ: LULU  )

$0.30

$0.32

5 Best Gas Stocks To Invest In Right Now: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Matt Jarzemsky]

    While economists attributed some of the downtick to cold and snowy weather, some are wondering if the Federal Reserve�� plan to dial back its stimulus program this year could lead to a rise in interest rates, putting the brakes on the housing recovery. The SPDR S&P Homebuilders exchange-traded fund��hich tracks a broad basket of housing-related stocks from builders to Sheetrock maker USG Corp.(USG)��s down about 3.6% year-to-date.

  • [By Seth Jayson]

    USG (NYSE: USG  ) reported earnings on April 24. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share.

Top 10 Cheap Companies For 2015: Lattice Semiconductor Corporation(LSCC)

Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.

Advisors' Opinion:
  • [By Lee Jackson]

    Lattice Semiconductor Corp. (NASDAQ: LSCC) is a top chip stock to buy at Jefferies. The company announced last month three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor and display technologies. The Jefferies price objective for the stock is $6.50, and the consensus is also at $6.50. Lattice closed yesterday at $4.63.

  • [By kcpl]

    Lattice Semiconductor (LSCC) is doing well. It has seen improvements in its operations. The company excels in the manufacture of programmable chips which are sold in various segments such as mobile, communications, automotives, industrial etc. The reason for the company�� strong performance has been its key customers such as China Mobile and Cisco. On the back of a strong client base, Lattice has seen a good 40% growth in its stock price. Let us take a look at its business.

Top 10 Cheap Companies For 2015: Progress Software Corporation(PRGS)

Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massac husetts.

Advisors' Opinion:
  • [By Rick Munarriz]

    Progress Software (NASDAQ: PRGS  ) moved higher after posting better-than-expected quarterly results this week. The provider of developer tools software saw revenue rise by a better-than-expected 10%, and its adjusted net income of $0.27 a share blew past the $0.22 a share that the market was forecasting.�

Top 10 Cheap Companies For 2015: Capstone Turbine Corporation(CPST)

Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.

Advisors' Opinion:
  • [By Selena Maranjian]

    Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST  ) and Nokia (NYSE: NOK  ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it's poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.

  • [By Monica Gerson]

    Capstone Turbine (NASDAQ: CPST) soared 14.29% to $2.24 in the pre-market trading after surging 7.10% on Monday.

    Ballard Power Systems (NASDAQ: BLDP) shares jumped 10.17% to $7.58 in pre-market trading after jumping 30.30% on Monday.

  • [By Dan Caplinger]

    Beyond the fundamentals, though, news plays an important role in short-term stock movements. Outside the Dow, microturbine producer Capstone Turbine (NASDAQ: CPST  ) soared 8.8% after receiving its second large order in the past week. After getting word of a purchase from real-estate and investment firm Related Companies on Tuesday, Capstone got an order today from Southern California Gas to buy three of its C65 uninterruptible power-source units for use at the gas company's data center. Given the relatively small size of the business, which sports sales of only about $122 million over the past year, orders like this have a material effect on Capstone and also draw the attention of other prospective buyers.

Top 10 Cheap Companies For 2015: S&P GSCI(GD)

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:

  • [By Paul Ausick]

    Although no other defense or aerospace contractors had announced any layoffs or furloughs due to the government shutdown, the Aerospace Industries Association said last Friday that “tens of thousands” of employees at member companies would have to be furloughed if the shutdown continued. The group includes defense firms Northrop Grumman Corp. (NYSE: NOC), Raytheon Co. (NYSE: RTN) and General Dynamics Corp. (NYSE: GD) among its membership. None of these firms had announced plans to idle workers.

  • [By Dividends4Life]

    Linked here is a detailed quantitative analysis of General Dynamics (GD). Below are some highlights from the above linked analysis: Company Description: General Dynamics is the world's fourth largest military contractor and also one of the world's biggest makers of corporate jets.

Top 10 Cheap Companies For 2015: The Travelers Companies Inc.(TRV)

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.

Advisors' Opinion:
  • [By John Divine]

    Lastly, property and casualty insurer Travelers (NYSE: TRV  ) sank 3.8% to end at the bottom of the Dow. You'd never guess it after considering the shellacking the stock took today, but the company actually blew away Wall Street estimates, earning $2.41 per share when analysts were looking for just $1.64 per share. So why the shellacking? Well, it appears Travelers was somehow able to overcharge customers for an entire quarter, and, because people are starting to notice, the insurer has to quickly lower its prices before things get ugly.

  • [By Dan Caplinger]

    Finally, Travelers (NYSE: TRV  ) has climbed 1.3%. Insurance companies generally cheered the dissipation of Tropical Storm Chantal to a "tropical wave" this week, as the threat of yet another costly hurricane hitting insurers' net income represents the most unpredictable aspect of investing in insurer stocks. More importantly, though, rising bond yields have raised the ability of Travelers and its peers to generate greater income from their investment portfolios without taking on undue risk. The resulting increase in investment proceeds should fall straight to the bottom line as profit, helping Travelers make the most of its premium revenue.

  • [By Dividends4Life]

    Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CINF is trading at a discount to only 3.) above. The stock is trading at a 36.8% premium to its calculated fair value of $34.96. CINF did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% CINF earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1954 and has increased its dividend payments for 54 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $62 is below the $500 target I look for in a stock that has increased dividends as long as CINF has. If CINF grows its dividend at 1.2% per year, it will take 5 years to equal a MMA yielding an estimated 20-year average rate of 3.68%. Memberships and Peers: CINF is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Divid

Top 10 Cheap Companies For 2015: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:
  • [By Rich Smith]

    California-based AeroVironment (NASDAQ: AVAV  ) continues its relentless march -- or the airborne equivalent of a march -- to raking in every last cent of the $65.5 million the Pentagon has awarded it to produce unmanned aerial vehicles (UAVs) for the U.S. Army.

  • [By Rich Smith]

    Shares of unmanned aerial vehicle specialist-cum-battery fast-charger equipment maker AeroVironment (NASDAQ: AVAV  ) surged in early Wednesday trading, helped by kind words from a new investor that's just taken a substantial stake in the company.

  • [By Roberto Pedone]

    One aerospace player that insiders are loading up on here is AeroVironment (AVAV), which is engaged in the design, development, production and support of unmanned aircraft systems and efficient energy systems for various industries and governmental agencies. Insiders are buying this stock into decent strength, since shares are up 23% during the last six months.

    AeroVironment has a market cap of $504 million and an enterprise value of $379 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 108.75 and a forward price-to-earnings of 44.35. Its estimated growth rate for this year is 47.4%, and for next year it's pegged at 82.1%. This is a cash-rich company, since the total cash position on its balance sheet is $128.81 million and its total debt is zero.

    A director just bought 5,000 shares, or about $112,000 worth of stock, at $22.50 per share.

    From a technical perspective, AVAV is currently trending right below its 50-day moving average and above its 200-day moving averages, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $20.78 on the downside and $23.97 on the upside. Shares of AVAV are now starting to trend within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

    If you're bullish on AVAV, then look for long-biased trades as long as this stock is trending above support at $22.30 or above its 200-day at $21.05 and then once it breaks out above some near-term overhead resistance levels at $23.60 to $23.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 205,927 shares. If that breakout triggers soon, then AVAV will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $28 a share.

  • [By Lauren Pollock]

    AeroVironment Inc.'s(AVAV) fiscal second-quarter profit fell 81% on a sharp decline in revenue and margins. However, shares were up 4.4% at $28.10 in premarket trading as the maker of pilotless drones and rechargeable-batteries reported adjusted earnings and revenue that topped expectations.