Hi-Crush, Briggs & Stratton, SITO, Camtek and Attunity as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL - May 10, 2018 - Zacks Equity Research highlights Hi-Crush PartnersHCLP as the Bull of the Day and Briggs & StrattonBGG as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SITO Mobile, Ltd.SITO , Camtek Ltd.CAMT and Attunity Ltd.ATTU .
Here is a synopsis of all five stocks:
Hi-Crush Partners is a Zacks Rank #1 (Strong Buy) and sports straight A's on its report card. Well not really a report card, but the Zacks Style Scores for Value, Growth and Momentum are all A's. Investors love to see that from a stock and so do I and that is why I made HCLP the Bull of the Day.
Hi-Crush Partners provides proppant and logistics solutions to the energy industry in North America. The company produces monocrystalline sand, a specialized mineral used as a proppant during the well completion process to facilitate the recovery of hydrocarbons from oil and natural gas wells. It owns, operates, and develops sand reserves, and excavation and processing facilities throughout Wisconsin. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. Hi-Crush Partners LP was founded in 2012 and is based in Houston, Texas.
On May 1, the company posted earnings of $0.59 and that was $0.04 better than the consensus estimate at the time. Revenues came in at $218M for a year over year increase of 161% and also ahead of the $212M estimate.
Guidance wasn't specific in terms of actual revenue numbers, but the company did say they expected sales volumes to increase to a range of 2.9 to 3.1 million tons.
Following the report, estimates moved up, but they were already inching higher before the print. 90 days ago the Zacks Consensus Estimate for 2018 was at $2.26, but that bumped up to $2.46 as of 30 days ago and is now at $2.84. That is just what investors love to see.
The 2019 Zacks Consensus Estimate moved from $1.91 to $2.20 over that same 90 day period. This poses a small dilemma for shareholders, as there is expected earnings contraction to take place next year. With 2018 almost halfway over, investors will soon focus on 2019, so hopefully, some more visibility will come with the next earnings report.
I see a wonderful valuation for HCLP, with a forward multiple of 4.7x and a trailing earnings multiple of 8x. Either way you look at it, that is pretty low. Price to book is a more conservative measure and at 1.45x multiple is another reason the stock has a value style score of A.
What really impresses me in the increase in net margin over the last three quarters. That measure has moved from 7% to 13% to 19% and it looks to be headed higher in future quarters.
Briggs & Stratton is a Zacks Rank #5 (Strong Sell) despite having posted a beat at its most recent earnings event. Let's take a look at why this stock can have a solid Value Style Score of A as well as a strong Growth Score of B and still be The Bear Of The Day.
Briggs & Stratton Corporation makes and sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers. Briggs & Stratton Corporation was founded in 1908 and is headquartered in Wauwatosa, Wisconsin.
On April 25, the company reported earnings of $0.84 per share, and that was two cents better than the consensus estimate. Revenues rose 1.2% on a year over year basis to $604M and that was below the $616M consensus estimate.
The company also lowered guidance for FY18 to $1.33 - $1.50 from $1.45 - $1.62 when the consensus estimate was calling for $1.54. The company also lowered the top end of the projected revenue range but the guide was still within the consensus estimate.
Following this report, estimates tumbled. The current quarter saw numbers slide from $0.72 to $0.48 and the following quarter also fell by a penny.
The Zacks Consensus Estimate for 2018 moved from $1.53 to $1.31 while next year saw a decrease from $1.79 to $1.60.
The Zacks Rank is built on the movement of earnings estimates. When estimates move down, the Rank tends to follow.
3 Tech Stocks Under $10 to Buy Now
Here at Zacks, we don't generally classify stocks as "cheap" or "expensive," and rather than looking at the stock's face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
That being said, low-priced stocks can be attractive to smaller investors that can't necessarily afford large stakes in companies with higher priced stocks.
When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.
Today we've highlighted three stocks that fall into the broad "technology" sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:
1. SITO Mobile, Ltd.
Prior Close: $3.60
SITO Mobile is a provider of location-based advertising and mobile messaging platforms that allow brands to launch targeted mobile advertising campaigns. The stock is sporting a Zacks Rank #2 (Buy), and the company has witnessed strong earnings estimate revision activity and is now expected to improve its bottom line by 94% in the current fiscal year.
That earnings growth is projected to come on the back of 25% revenue growth. The company is still expected to be in the red this year, but earnings are estimated to turn positive soon, and EPS expansion is expected to reach an annualized rate of 25% over the next three to five years. Meanwhile, the stock is trading with a respectable P/S ratio of 2.1.
2. Camtek Ltd.
Prior Close: $7.88
Camtek is a developer of automatic optical inspection systems that are used to enhance both production processes and yield for manufacturers in the circuit board and semiconductor industries. After posting better-than-expected earnings results last week, CAMT has moved to a Zacks Rank #2 (Buy), and its resulting share price surge has earned it an "A" grade for Momentum in our Style Scores system.
Camtek is also an exciting growth pick, with EPS figures expected to improve by 81.5% in the current fiscal year and an additional 25.5% in 2019. Still, the stock is trading with a Forward P/E of just 16.1 and a P/S of 2.8-so its valuation is hardly stretched considering its rapid expansion opportunities.
3. Attunity Ltd.
Prior Close: $9.61
Attunity is a provider of software solutions that enable access, management, sharing, and distribution of data across enterprise platforms and the Cloud. The stock is currently holding a Zacks Rank #2 (Buy) and looks like one of our hottest growth and momentum options right now. Shares have soared 31% over the past month, while its full-year EPS estimates have improved by 74% in that time.
The company is now expected to be profitable on the back of 280% earnings growth in 2018. That EPS growth is projected to be supported by revenue growth of 24%. Attunity is expected to witness a long-term earnings growth rate of 20%.
A stock's market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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