This article will focus on five stocks that were uncovered using a stock screener on May 8, 2013. This is meant to help you identify companies that have the potential to provide significant returns. Many of these stocks have seen large price decreases over the past year, and now might be a great time to scoop them up.
The stock screen was meant to identify companies that have high earnings per share growth. Additionally, I looked for ones that are technically oversold, as this may provide an indication that they are due for a price increase in the near to long term. To screen out any companies that are growing earnings rapidly but still losing money, I made sure that each saw four consecutive quarters of positive earnings. Based on the facts that these companies are oversold and that they are producing positive earnings, it excites me to see that they are near 52 week lows. Sometimes, opportunities like these are exactly what can produce significant long-term returns.
The companies that I uncovered were Allied Nevada Gold Corp. (NYSEMKT:ANV), Aruba Networks, Inc. (NASDAQ:ARUN), athenahealth, Inc (NASDAQ:ATHN), Ixia (NASDAQ:XXIA), and Zagg Inc (NASDAQ:ZAGG). These companies are in various industries, which is something I like to see if I wanted to make a portfolio of these stocks. Diversification of industries would be something I view as value-added for a random assortment of stocks that have these factors in common.
The following is a one year price chart, expressed as percentage changes. It includes the S&P 500 to compare the performance of these stocks to the index.
The performance of these stocks over the past year has lagged the S&P 500. As a potential investor in these companies, if I were looking to invest, this would not necessarily be a bad sign. Past results are not indicative of future results, and if these companies have solid fundamentals and potential, their current price levels could prove to be a great entry point.
Allied Nevada Gold’s Credentials
Allied Nevada Gold Corp. (NYSEMKT:ANV) is currently sitting right near its 52 week low of $9.16. It earned $0.52 per share last year and is forecasted to earn $1.02 per share this year. Next year, analysts are calling for earnings of $2.09 per share. In addition, the company is forecasted to grow earnings by 96.2% this year and by 104.9% next year. Potential catalysts for this stock include the chance that the stock bounces strongly off of its 52 week low. If analysts start to revise the company’s earnings estimates upward again, and if positive developments for the company come out, moving back up toward that 52 week high is possible.