3 Little-Known Stocks From 2013′s Most Promising Sector

Page 1 of 2

In late November, I dissected the current and projected valuations for all the major sectors, further breaking them down by market cap. The purpose of the exercise was to pinpoint which slivers of the market were the best-positioned to make big gains in 2013, since as much as 40% of an individual stock’s performance is ultimately attributable to its sector’s performance.

Although a handful of sector/market cap groups stood out as winners, one group in particular was an obvious “must have” for 2013: Mid-cap industrial stocks.

Yes, many of the stocks in this segment of the market are not only boring, but also unfamiliar to many investors. But that’s OK — boring, obscure stocks are often the ones that quietly dole out the biggest rewards.

With that in mind, here are the top three picks from the group that investors should consider buying as they head into the new year.

Triumph Group Inc (NYSE:TGI)

1. Triumph Group Inc (NYSE:TGI)
Triumph Group Inc. is an aerospace and defense contractor. But the company is also a manufacturer and a designer, catering to the public sector as much as the private, and making just as much hardware for new aircraft as it does to maintain older planes. But the most compelling aspect of this company is found on its income statement.

In each of the past 11 quarters, Triumph Group has topped earnings estimates. Last quarter, for instance, the company beat estimates of $1.33 by earning $1.57 per share. In the quarter before that, Triumph earned $1.48, leaving expectations of $1.28 per share in the dust.

Looking ahead, analysts expect the contractor to grow the bottom line by 22% per year. Given the strong growth trend already in place though, in addition to a very palatable trailing price-to-earnings (P/E) ratio of 10.9, this boring little contractor is simply too underestimated.

2. URS Corp (NYSE:URS)
URS Corp. isn’t even close to being a household name, but the company designs, builds and maintains all sorts of large-scale equipment and facilities for some well-known companies, and even government agencies and the military. Some recently-awarded projects include the construction of a mine-tailings processing facility for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), a maintenance contract for some of the U.S. Army’s radar equipment, and a contract with the U.S. Department of Energy to properly manage the radioactive waste from the department’s nuclear power plant in Idaho. Those three projects alone could create nearly $1 billion in business for URS Corp.

It’s still all rather mundane stuff, but like Triumph, there’s nothing mundane about its balance sheet. URS has grown the bottom line every year since 2007, with only one minor exception in 2011 when earnings fell from $3.54 per share in 2010 to $3.53 per share the next year. The company is back on track though, on pace to earn $4.27 per share this year. That 21% growth forecast versus the forward-looking earnings multiple of only 8.6 makes this stock a hidden bargain.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!