Panic selling sent the market crashing yesterday, as the coronavirus continued to spread globally, having been declared a pandemic. Both the Dow and the S&P 500 appeared to be in free-fall, down nearly 10% for the day. The Nasdaq dropped more than 9 points.
Amongst the chaos, the Fed declared it would pump more than a trillion dollars to stabilize the financial system, in addition to the rate cut announced earlier. It could also announce another rate cut at its March 18 meeting, if not sooner.
But investors appear rattled and unwilling to consider the reality that is nowhere near as gloomy as it’s being made out to be. There’s obviously a virus impact on travel companies, as both individual and corporate travel is minimized. The impact on technology companies could turn out to be worse than anticipated although there are indications that the Asia supply chain is limping back to normal.
And a few companies might insist that people work from home as far as possible, to be on the safe side. This of course doesn’t mean that all the factories are shutting down, people aren’t going to work anymore and production is coming to a standstill.
The other thing worth keeping in mind is the fact that valuations had been soaring beyond reason, not just on our favorite stocks, but across the board. So we should actually welcome the correction as many stocks are getting closer to reasonable valuations.
But still, if you think the market’s too risky and want to get back into the market on a budget, here are a few that can get you far-
Trinity Industries TRN
Trinity Industries is a diversified industrial company based in Dallas, TX. The company owns market-leading businesses offering rail transportation products and services in North America.
At $16.10 a piece, TRN is now going cheap, despite its 2020 EPS estimate jumping 13 cents in the last 30 days. Additionally, the company usually tops analyst estimates, which means that there’s further scope for appreciation.
Artisan Partners Asset Management Inc. APAM
Artisan Partners Asset Management Inc. is an independent investment management firm that provides a broad range of U.S., non-U.S. and global equity investment strategies. The Company's manages investments primarily through mutual funds and separate accounts. Its clients include pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. pooled investment vehicles.
At $20.01 a piece, APAM has dropped to its lowest valuation in the past year despite its 2020 EPS estimate increasing 15 cents in the last 60 days. Additionally, the company usually tops analyst estimates, indicating further scope for appreciation. Its 2020 revenue and earnings expected to be up 12.5% and 13.5%, respectively.
Orion Energy Systems, Inc. OESX
Orion is a leading power technology enterprise that designs, manufactures and implements energy management systems, consisting primarily of high-performance, energy efficient lighting systems, controls and related services, for commercial and industrial customers without compromising their quantity or quality of light.
At $3.26 a piece, OESX is also trading below its average level over the past year despite the fact that its 2020 EPS estimate grew 10 cents in the last 60 days. In the last four quarters, it has topped analyst expectations by 363.6%, so there’s every reason to believe that another beat is ahead. The 2020 revenue and earnings are expected to grow 135.4% and 300%, respectively.
Superior Energy Services, Inc. SPN
Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.
At $1.52 a piece, the stock is trading at the low end of its trading range over the past year despite the fact that its per share loss estimate dropped $2.82 in the last 60 days (86 cents of this was in the last 30 days). It’s also a company that usually tops analyst estimates. Its 2021 revenue and earnings expected to grow 4.4% and 73.3%, respectively.
Calix, Inc CALX
Calix is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enables communications service providers worldwide to transform their networks and become the broadband provider of choice to their subscribers.
At $6.66 a piece, the stock is trading below its average level over the past year. Its 2020 EPS estimate has edged up a penny over the last 60 days and it has topped analyst estimates by 24.0% on average over the last four quarters. Its 2020 revenue and earnings expected to grow 7.2% and 250%, respectively.
BioCryst Pharmaceuticals, Inc. BCRX
BioCryst Pharmaceuticals is a leader in the use of crystallography and structure-based drug design for the development of novel therapeutics to treat cancer, cardiovascular diseases, autoimmune diseases and viral infections.
At $2.02 a piece, BCRX is trading at the low end of its trading range over the past year although both 2020 and 2021 per share estimated loss is down significantly (a respective 18 cents and 20 cents) in the last 30 days. it has topped analyst estimates by 18.2% on average over the last four quarters. While revenue for the year is expected to decline, 2021 revenue is currently expected to jump 34.6%. Earnings will grow 5.3% this year and 17.1% in 2021.
Molecular Templates Inc. MTEM
Molecular Templates is focused on the discovery, development and commercialization of next-generation immunotoxins called Engineered Toxin Bodies for the treatment of cancers and other serious diseases.
At $11.40 a piece, the stock is trading above its annual average, but is significantly off its high point. Considering that its 2020 loss per share estimate is down 46 cents in the last 30 days and its 2020 revenue and earnings are expected to be up 30.6% and 2.6%, respectively, this is a stock worth looking into.
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BioCryst Pharmaceuticals, Inc. (BCRX) : Free Stock Analysis Report
Calix, Inc (CALX) : Free Stock Analysis Report
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
Superior Energy Services, Inc. (SPN) : Free Stock Analysis Report
Orion Energy Systems, Inc. (OESX) : Free Stock Analysis Report
Artisan Partners Asset Management Inc. (APAM) : Free Stock Analysis Report
Molecular Templates Inc. (MTEM) : Free Stock Analysis Report
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