For Immediate Release
Chicago, IL – January 06, 2017 –Zacks Equity Research highlights Thor Industries (NYSE:THO – Free Report ), Citi Trends (Nasdaq:CTRN – Free Report ), MiX Telematics (NYSE:MIXT– Free Report ), EMCORE Corporation (Nasdaq: EMKR– Free Report ) and Ultra Clean Holdings (Nasdaq: UCTT– Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
Founded in 1980, Thor Industries (NYSE:THO – Free Report ) is one of the world’s largest manufacturers of recreational vehicles (RVs). They operate under two major business segments: 1) Towable RVs including travel trailers, fifth wheels and specialty trailers, and 2) Motorized RVs including bus style and van motorhomes.
They have 197 operating facilities in the US and sell their products through independent retail distributors primarily in the U.S. and Canada.
Impressive Third Quarter Results
The company reported earnings of $78.7 million, or $1.49 a share, up from $50.5 million, or 96 cents, in the same quarter last year. Sales increased 66% to $1.7 billion. Results were boosted by the recent acquisition of Jayco.
“The strong revenue and earnings growth reflects the ongoing enthusiastic reception of our product offerings by dealers and consumers alike, as well as our ability to effectively manage our growth and integrate acquisitions successfully," said the CEO.
The company has an impressive record of profitability. They have been profitable every year since their founding in 1980, so that’s 36 consecutive years of profitability in different business cycles.
They have grown their earnings consistently, with a 5-year CAGR of 23% for net income and 24% for diluted EPS.
Rising Earnings Estimates
Analysts have raised their estimates for the company after excellent earnings. The Zacks Consensus Estimate for the current and the next fiscal year have increased to $6.38 and $6.89 per share from $5.81 and $6.46, 60 days ago.
THOR INDS INC Price, Consensus and EPS Surprise | THOR INDS INC Quote
The management expects double-digit growth in revenues and improvements in earnings throughout fiscal 2017.
Positive Industry Outlook
Baby boomers, representing about 24% of the population are their target market and as they approach retirement age, they will have more time and travel and camping. Of late, the company has also focused on lower priced products with more technological innovations to attract Generation X and Millennials.
The Bottom Line
The stock has a VGM score of “B.” Further Zacks Industry rank of 4 out of 265 (top 2%) greatly increases the likelihood of short-to-mid- term outperformance.
Bear of the Day :
Despite rising consumer confidence and improving labor markets, consumers remain reluctant to spend. Weak holiday sales have forced many retailers to shrink their operations and focus on more promising operations like e-commerce.
Headquarters in Savannah, GA, Citi Trends (Nasdaq:CTRN – Free Report ) is an off-price retailer of fashion apparel, shoes, accessories and home decor. Their buyers source merchandise from over 1600 vendors and offer branded merchandise at about 20% to 70% discount compared with the regular prices at department and specialty stores.
The company IPO’d in May 2005. They now operate 530 stores in 31 states and employ approximately 4500 people.
The retailer reported weaker-than-expected results for Q3. They posted a loss of $0.06 per share in the quarter, compared with earnings of $0.04 per share reported in the same quarter a year ago. The results also missed the Zacks Consensus Estimate for earning of $0.03.
Their sales increased 1.1% year-over-year to $160.7 million but were short of the Zacks Consensus Estimate of $168.1 million.
Comparable store sales declined 1% in the quarter.
Analysts have slashed their estimates for the company after weak results . Zacks Consensus Estimates for the current and the next fiscal year have fallen to $0.91 per share and $1.21 per share from $1.00 and $1.30 respectively before the results.
The Bottom Line
In addition to disappointing consumer spending and mall traffic, the retail space is going through a shift toward online shopping. With tightening labor markets, “wage pressure’ has also started hurting retailers.
Top 3 Tech Stocks Under $10
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.
Today we’ve highlighted three stocks that fall under the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #1 (Strong Buy). Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:
1. MiX Telematics (NYSE:MIXT– Free Report )
Prior Close: $6.35
MiX Telematics is a provider of vehicle tracking services for the consumer and commercial vehicle market worldwide. Over the past 30 days, we have seen one positive estimate revision for the company’s current-quarter earnings, which has brought our Zacks Consensus Estimate one penny higher. Based on current estimates, we expect MiX to post sales growth of 12.06% and EPS growth 116.67% this quarter. It is also worth noting that MiX currently has an “A” grade in every category of our Style Scores system.
2. EMCORE Corporation (Nasdaq:EMKR– Free Report )
Prior Close: $8.50
Emcore is a provider of compound semiconductor-based products for the broadband, fiber optic, satellite, and terrestrial solar power markets. We’ve seen impressive estimate revision activity for the company recently, with four positive revisions coming in over past 60 days. This has helped push Emcore’s current-quarter Zacks Consensus Estimate four cents higher. This stock has gained over 55% in the past 12 weeks, and that growth could continue if Emcore can post its projected sales growth of 29.06% and EPS growth of 150%.
3. Ultra Clean Holdings (Nasdaq:UCTT– Free Report )
Prior Close: $10.00
Ultra Clean is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. The Zacks Consensus Estimate for the company’s current-quarter earnings stands at 19 cents per share right now, which is not only 11 cents higher than it was 90 days ago, but also astronomically improved from its year-ago EPS of -$0.01. Current estimates also indicate that Ultra Clean could see sales growth of about 43% this quarter. The company also has a VGM score of “A.”
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. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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Thor Industries, Inc. (THO): Free Stock Analysis Report
Citi Trends, Inc. (CTRN): Free Stock Analysis Report
MiX Telematics Limited (MIXT): Free Stock Analysis Report
EMCORE Corporation (EMKR): Free Stock Analysis Report
Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report
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