CHICAGO, June 13, 2011 /PRNewswire/ -- Today, Zacks
Investment Ideas feature highlights Features: EZCORP Inc.
(Nasdaq: EZPW), The Andersons (Nasdaq: ANDE), Gardner
Denver, Inc. (NYSE: GDI),
CARBO Ceramics Inc. (NYSE: CRR) and Lithia Motors
(NYSE: LAD).
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The 5 Best Stocks You've Never Heard Of
Do you own shares of the hot stocks? You know the ones I'm
talking about.
Apple
Amazon.com
Netflix
Chipotle
Priceline
Most people have at least a few of these, and some of the other
hot stocks, in their portfolio. If you owned them since the 2009
lows, you've cashed in big.
How good have the returns been in these glamour stocks since
March 9, 2009?
Amazon: 211%
Apple: 300%
Chipotle: 464%
Priceline: 538%
Netflix: 581%
Impressive, indeed. But the well known stocks aren't the only
game in town.
There are companies you may never even have heard of, some of
which are much smaller or in industries that are considered less
"glamorous" by investors, whose returns matched or, in some cases,
surpassed this list of the glamour stocks during the same time
period.
How could that be? What company could beat Apple???
These 5 little known stocks have also been champions off the
2009 lows. There's nothing glamorous about any of them but check
out their returns for the same period as the so-called hot
stocks.
1. The pawn shop operator: 231%
2. A fertilizer and grain storage provider: 244%
3. A manufacturer of compressors: 347%
4. The specialty resources provider to the oil industry: 360%
5. An auto retailer: 764%
Just who are these companies?
1. EZCORP
2. The Andersons
3. Gardner Denver
4. CARBO Ceramics
5. Lithia Motors
Not too bad for companies most investors have never heard
of.
But the good news is that all 5 of these companies still have
solid fundamentals including rising earnings estimates and
attractive valuations. All 5 of them are Zacks #1 Rank (strong buy)
or Zacks #2 Rank (buy) stocks.
1. The Pawn Shop Operator
EZCORP Inc. (Nasdaq: EZPW) operates 500 pawn shops and
500 short-term consumer loan stores in the U.S., Mexico and Canada. In its fiscal second quarter results,
revenue jumped 19% to $131 million.
Same-store revenue also climbed 12%. The company raised full year
guidance in April.
It's valuations are still excellent.
Forward P/E: 12.4
PEG: 0.8
Expected EPS Growth: 30%
EZCORP is a Zacks #2 Rank (buy). The rally off the lows has been
impressive.
2. The Fertilizer and Grain Storage Provider
The Andersons (Nasdaq: ANDE) is an Ohio-based agribusiness company with offering
fertilizers, grain storage and distribution, ethanol, specialty
turf products and rail car leasing. The company reported a record
first quarter as earnings per share jumped to 93 cents, blowing out the Zacks Consensus by
19 cents. Sales jumped 39%.
The Andersons is cheap.
Forward P/E: 9.7
PEG: 0.8
Expected EPS Growth: 16.4%
The Andersons is a Zacks #2 Rank (buy) stock. It has been a
bumpier ride off the March lows for this stock.
3. An Industrial Manufacturer In Business Since 1859
Gardner Denver, Inc.
(NYSE: GDI) has weathered plenty of recessions and depressions in
its time. The manufacturer of industrial compressors, blowers,
pumps, loading arms and fuel systems which started out in
Illinois with one location in 1859
is now a global player with 40 manufacturing facilities around the
world.
The company had a record first quarter as revenues soared 26%.
It also easily beat the Zacks Consensus Estimate by 20%.
Forward P/E: 16.5
PEG: 0.9
Expected EPS Growth: 43%
Gardner Denver is a Zacks #2
Rank (buy) stock. The company has attractive valuations despite the
shares soaring.
4. The Specialty Resources Provider
CARBO Ceramics Inc. (NYSE: CRR) is one of the world's
largest suppliers of ceramic proppant for fracturing oil and gas
wells. The company reported the best quarter in its history on
Apr 28 as revenue rose 22% compared
to the year ago quarter on strong ceramic proppant demand in the
natural gas and liquids-rich plays such as Eagle Ford, Permian and
the Bakken. Ceramic proppant demand is hot!
CARBO is the most expensive of
our unknown stocks.
Forward P/E: 27.6
PEG: 1.1
Expected EPS growth: 55.5%
The company is a Zacks #1 Rank (strong buy). Shares took off in
the last 8 months as the energy story heated up.
5. The Auto Retailer
Lithia Motors (NYSE: LAD) has been selling automobiles
since 1946 when its first retail store was opened in Oregon. Its retail stores now include 86
locations in 12 states. Left for dead by investors during the
recession due to the near collapse of the auto industry, the
company, which also sells used cars and provides maintenance, has
rebounded.
In the first quarter, revenue soared 31.3% as new vehicle same
store sales rose 41%, used vehicle same store sales jumped 17% and
service/body and parts sales increased 8%. Its western markets are
seeing the economic recovery.
Forward P/E: 12.2
PEG: 0.4
Expected EPS growth of 50.8%
Shares traded as low as $2.01 on
March 9 before surging off the low.
It hasn't been a straight up shot though. But if you held on
through the ups and downs, its return is more than double the
return on Apple's shares during the same period.
Don't Overlook the Unknown Companies
While there's nothing wrong with investing in the hot glamour
stocks, if you widen your search beyond the well known names you
might find a hidden gem that pays off just as big.
[Returns data in the article was tabulated from March 9, 2009 to the closing price on
June 8, 2011.]
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