Five to Buy
With Roadrunner Stocks’ transition to Growth Stock Strategist, we have a new portfolio that includes these five new buys:
Apogee Enterprises: (NSDQ: APOG)
Apogee sells and designs architectural glass for commercial buildings and offers investors a way to capitalize on robust growth in this industry. This specialized glass is a world away from typical window glass. Instead, it’s glass used as a building material for everything from partitions in offices to skyscraper exteriors to making storefronts energy- efficient and hurricane-resistant. Industry data point to continued expansion of commercial skyscrapers. After growing earnings an astounding 58% in fiscal 2015, Apogee’s shares have been reset to reflect still powerful mid-twenties growth. Despite conservative expectations for 24% earnings growth in 2017, the stock trades with a PE of 15 times.
Buy APOG up to $45
On Assignment: (NYSE: ASGN)
On Assignment provides temporary staffing services to a multitude of industries. Its army of IT and executive contractors possess highly desirable skills. The company has focused on the highest growth industries in need of temporary professional staffing. Its strategy of expanding into new skill sets via acquisitions and then cross-selling them to its current customers has been hugely successful. One of its earliest acquisitions was the IT staffing company Apex Systems in March 2012. This division is still expanding dramatically, increasing 40% last year (18% without acquisitions). The company’s recent purchase of digital ad firm, Creative Circle, will boost earnings on top of the high-teens organic growth of the base business.
Buy ASGN up to $36
Ethan Allen: (NYSE: ETH)
A recently completed makeover of Ethan Allen’s furniture lines is positioning it for higher growth. These sleek new urban designs have been driving increased sales and improved profitability. Now that Ethan Allen’s company owned factories are humming along producing these new lines, profits will reflect this efficiency. A 1,500 strong team of interior designers matched with these new products is already setting earnings on fire. Earnings growth is expected to be a very fashionable 34% for the remainder of the fiscal year. Conservative estimates look for just 18% next year, a number we think looks too low based on current trends.
Buy up to $30
Express: (NYSE: EXPR)
Apparel retailer Express continues to work its magic by catering to young working adults. New styles and a disciplined restraint regarding markdowns have boosted profits significantly. Earnings have more than doubled in the first 9 months of the year and the company has increased guidance twice since last October despite a brutal retail environment. Abundant cash flow has allowed Express to pay down all of its debt this year. Earnings for the fourth quarter to be reported Mar.9 are expected to grow 34%. We think earnings in fiscal 2017 will grow faster than the 11% expected. The stock sells at a meager 11 PE despite these fabulous numbers.
Buy up to $19.
Integrated Device Technology: (NSDQ: IDTI)
Integrated offers investors an easy way to profit from the explosion of chips controlling all aspects of our cars and household devices. The chip manufacturer recently closed on its purchase of ZMDI, a German maker of chips sold into the hard to penetrate smart-car market. Earnings grew 40% in the most recent quarter and 62% fiscal year to date. A reduction in March quarter estimates due to malaise in the Asian markets offer investors a chance to buy this reliable mid-20% grower for 14 times 2017 estimates. Integrated has $352 million or $2.40 per share in cash and a clean balance sheet.
Buy up to $20