Stocks with a solid growth story: Thoratec (THOR), Quantum (QTM), Spirit Airlines Incorporated (SAVE), Altisource Portfolio Solutions (ASPS), Micron Technology (MU)
By Royce Wickwire
• January 30, 2015
Valuation-related measures are often lousy instruments for timing the market. But that doesn’t mean they can’t hold interesting information about equity market returns. In the long run equity markets that exhibit stronger EPS growth tend to outperform. This relationship increases the importance of accurate EPS growth estimates for different markets. EPS growth percentage represents the annualized rate of net-income-per-share growth over the trailing one-year period for the stocks held by a stock. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability per unit of equity.
All things being equal, stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates. One of the important differences between earnings-per-share growth rates and net-income growth rates is that the former reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.
Thoratec Corporation (NASDAQ:THOR) have shown a high EPS growth of 34.20% in the last 5 years and has earnings growth of -84.40% yoy. Analysts have a mean recommendation of 2.30 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range). The stock appeared -3.13% below its 52-week highs and is up 0.68% for the last five trades.
Analysts gives Quantum Corp (NYSE:QTM) a mean recommendation of 2.30. The company has grown 46.02% in past 3 months and in the last five trades has moved up 1.85%. The stock has earnings growth of 100.00% yoy and showed a high EPS growth of 44.50% over the past five years. Shares are trading -0.33% below their 50-day moving average, and 25.89% above their 200-day moving average.
Spirit Airlines Incorporated (NASDAQ:SAVE) was trading -9.84% below its 52-week high and 71.10% above its 52-week low. Its last 5-Year EPS growth stands at 44.50% with earnings growth of 100.00% yoy. The stock has a 1-year performance up 29.92% and a positive weekly performance at 1.85%. The company is set at a mean analysts’ recommendation of 2.30.
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) shares are trading -84.44% below the 52-week high and has displayed a high EPS growth of 68.70% in last 5 years. The 1 year EPS growth rate is 17.20%. Its share price has grown -71.8% in three months and is up -13.83% for the last five trades. The average analysts gave this company a mean recommendation of 3.70.
Micron Technology, Inc. (NASDAQ:MU) floats -18.80% below the 52-week top level and its EPS growth rate was 25.20% over prior 5 years with earnings growth of 180.00% yoy. Mean recommendation on this stock is 2.00. The stock has a 1-year performance up 30.82% and positive at 2.48% in last five trading sessions.
But if you read the slide they presented, it shows a clear Rev. down from OCN. This is in the contract for both companies. So ASPS spend $8m on marketing new service to make it up. It's Not like people feared for that next day they don't know how much the business will be shrunk from OCN.
Sentiment: Strong Buy
The company has the cash, but according to the conference cal, they are wondering either reduce the debt or buy back. If the stock is still slipping. They will likely buy shares.
OCN supposed to know what they do, Always in lawsuit, always violate some rules. How they run their business? I feel a little tired. Don't know what will happen to them next. Hopefully they will do the RIGHT THING.
Also hope the company will have some dramatic movement to change the theme of passive attitude.
BM holding the short position, and using sent "bad words" to trustee. Is that legal? Is that manipulations?
Why they have the "info" of HLSS where the public is unknown? In another words, their action is not based on published information. Anyone here please go to the SEC web, and filed in your complain.