Breaking Bad is TV series about a chemistry teacher that is
diagnosed with inoperable lung cancer at the beginning of the
series. He turns to a life of crime, producing and selling
methamphetamine with a former student.
This series has managed to grow its audience every year for five
seasons. The cliffhanger from last season had 2.8M viewers, an
increase of 47% from the previous year's finale that was entitled
"Face Off" - a very appropriate name. For 2013, the series earned
13 Emmy Award Nominations.
But this is an investing article, not one trying to get people
excited for the final season! So let's take a look a few stocks
that can help your portfolio get high(er)... in legal way.
Disclaimer: I will try to not be too much of a spoiler for all
those that will later go on Netflix (NFLX) or some other streaming
service to binge watch all the episodes at once.
First the tie in to the show. Many will point to season 4 when the
Roomba makes an appearance, but I am a little partial to Jessie's
excitement over the potential to "make a robot" when a battery
) is one of my favorite stocks and not just because of its
connection to this great TV show. I like it for many reasons, but
the biggest has to be the earnings growth potential it has.
I put together this chart of the Zacks Consensus Estimates for 2013
and 2014. The chart shows how earnings estimates for both years
have been trending higher in nearly each month this year.
With those estimates moving higher and higher, you know that it is
a Zacks Rank #1 (Strong Buy). The Rank loves stocks that see
increases in the annual earnings estimates.
This stock should be part of your portfolio, and when you do buy
it, I am guessing you will clean up.
First the tie in to the show, and this one is pretty obvious. Even
before I knew what the show was about, I knew that an RV had
something to do with meth. Is the model that they use a Winnebago?
I couldn't tell you that, but I do know the WGO is a Zacks Rank #2
) is on this list for obvious reasons, but I like it for a less
than obvious reason. Yes, I am all about growth and this stock
isn't really one that you would expect to see growth from. Instead,
you see value. A whole lot of value.
In order to be a Zacks Rank #2 (Buy) the stock had to exhibit some
growth in earnings estimates. WGO did that a few months ago when
2013 Zacks Consensus Estimates stood at $0.80. By March they had
increased to $1.02 and have ticked a penny higher since.
The 2014 Zacks Consensus Estimate experienced a similar move in
March as the estimate jumped from $1.00 to $1.24. The implied
earnings growth rate of 21% probably a good bit better than the gas
mileage a newer model can get.
I see a few online resources have the PE of WGO at a very
reasonable 11x trailing earnings. That number is a whole lot closer
the to the traditional MPG of an RV.
Smith & Wesson
The tie in to Breaking Bad is pretty obvious here too. Most
criminal operations require a gun, and I am going to guess that
being in business for 150 years has exposed SWHC to many a gangster
Smith & Wesson
) is a maker of firearms and is a Zacks Rank #1 (Strong Buy). I
like SWHC for a few reasons, but the thing that jumps out at me
when I look at this stock is the revenue growth.
This chart tells me all I need to know about this story. A company
that doesn't see revenue growth has a hard time growing earnings.
SWHC does not have that problem at all. In fact, they are seeing
hockey stick growth and I like to get in on that idea as early as
The YCharts of quarterly revenues can be found on the Zacks home
page. They tell me a good part of the story, but the earnings story
is what drives stocks. The 2013 Zacks Consensus Estimate for SWHC
recently moved from $1.04 in May to $1.32 at the end of July. That
kind of growth is what I am gunning for.
Breaking Bad has had a wonderful run and entertained the masses.
Watching it via
) seems to ensure that this series will live long after the final
episodes air on AMC. Buying these stocks ensures that you will
invest in Breaking Bad style and your portfolio could get high(er).
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Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor
in charge of the
Run Investor service
, a Buy and Hold service where he recommends the stocks in the
Brian is also the editor of
Breakout Growth Trader
a trading service that focuses on small cap stocks and also carries
a risk limiting strategy.
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IROBOT CORP (IRBT): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis Report
SMITH & WESSON (SWHC): Free Stock Analysis
WINNEBAGO (WGO): Free Stock Analysis Report
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