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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!