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The Most Undervalued Small-Cap Service Stocks

  +Follow January 10, 2014 9:16AM
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The service sector often does not get the attention of some of its flashier cousins in Tech and Financials, but service stocks can offer a nice opportunity for retail investors looking for an overlooked investment opportunity. But which plays within the service sector are unjustly overlooked, and which are rightly-ignored dogs?

To find that out, we went looking for small-cap (worth between $300 million and $2 billion) service stocks that met four separate benchmarks that we felt indicated an investment poised for growth. They are:

1)      The company must have a profit-to-earnings ratio less than 15.

A low P/E indicates a company is making more money than their stock is worth. Of course, the correlation doesn’t always work out that way, but a  P/E under 15 indicates that there is a good chance that there is some undervaluation going on.

2)      The company must have a forward P/E of less than 15.

We wanted to find companies that are not just undervalued now, but look to continue to be so in the future.

3)      The company must be expected to grow EPS by at least 25 percent over the next year.

A high earnings-per-share (EPS) growth indicates that the company can be expected to become more profitable in the near future. And everyone likes to invest in companies that are expected to become more profitable.

4)      The company does not pay a dividend.

Small-cap service stocks pay a dividend because they cannot figure out how else to spend the money. Service companies, especially when they are growing, are better off spending money on advertising than on placating investors with a cash dividend.

After applying this criteria to the market, we found four small-cap service stocks we felt had a chance for experiencing growth in the coming year. They are:

VOXX International Corporation (VOXX)

Market Cap: $338.03 million

Price: $14.00

VOXX is a consumer electronics corporation based out of New York. Formerly known as Audiovox, the company manufactures commercial and consumer electronic accessories and audio equipment. While the company’s fundamentals might be string, ti should be noted that the stock dropped 17 percent on Jan. 9 on a poor earnings report.  

StealthGas Shipping (GASS)

Market Cap: $328.86 million

Price: $10.26

As their name implies, this Greek shipping company specializes in the transportation of petroleum and petrochemical gas products. The company sports an impressive forward P/E of 8.59 and yearly EPS growth of 67.37 percent.

EZCORP, INC. (EZPW)

Market Cap: $594.94 million

Price: $10.97

EZCORP is one of the largest pawn shop chains in the world, providing high-interest loans to a predominantly low income clientele. EZCORP got hammered in 2013, losing nearly half its value. However, the stock was recently upgraded by Zacks to “neutral” and sports a very impressive forward P/E of 5.98

Eros International plc (EROS)

Market Cap: $332.17 million

Price: $10.94

Eros International distributes movies from “Bollywood,” India’s fast-growing movie making sector. Eros just went public in late 2013. The service play has already attracted attention from investors looking to cash in on India’ entertainment boom. Eros sports very strong fundamentals, including an exceptional low P/E of 5.58, and an analyst consensus of “strong buy.”

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for VOXX
4-traders.com
1 Oct 14 14:05:03
VOXX : New Time Saving Weblink for Android Mobile FlashLogic Programmer http://t.co/NHiyJAM3w3 $VOXX
Roxana Pio
1 Oct 14 08:59:15
http://t.co/JGEprkGexz Verified $4.90 profit in $VOXX Got out quick. Miniscule profit.
Russell Barbour
30 Sep 14 10:46:58
Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/uBX7WCneox #stocks $VOXX $EKSO #trading $RWLK $JACK
PennyStock Zone
30 Sep 14 06:02:31
$4,911 profit verified here: http://t.co/pjklR5ae0H thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Toddzilla
29 Sep 14 19:57:47
RT @BlinkX90: $VOXX Action camera/Cyber Security product Catalysts: Catalyst #1: Action cameras seem to be the hot... http://t.co/l6CKNZQXQN
Greg Keown
29 Sep 14 18:56:44
RT @BlinkX90: $VOXX will be shocked if they don't pick this up,360Fly, 360 view action cam, looks really good, launch later this yr http://…
$Stocknewsalerts
29 Sep 14 14:05:50
$VOXX ALERT: New VOXX International Corporation SEC Filing From our Stock News Alerts App
$Stocknewsalerts
29 Sep 14 14:00:53
$VOXX New SEC Document(s) for VOXX From our Stock News Alerts App
BV Services
29 Sep 14 13:56:11
$VOXX Voxx International Corp files Form 10-K/A (Annual Report (Ammendment)) SEC Filing.. http://t.co/PSXaP2Yw2s
Stocks News&Markets
29 Sep 14 13:55:26
$VOXX - Amended Annual Report (10-k/a) http://t.co/ZQsjFrn0wi
PennyStock Zone
29 Sep 14 12:29:10
$4,911 profit verified here: http://t.co/pjklR5ae0H thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Russell Barbour
29 Sep 14 10:17:29
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/EfuNMUT9XP #stocks $VOXX $EKSO #trading $RWLK
PennyStock Zone
29 Sep 14 09:36:41
$4,911 profit verified here: http://t.co/pjklR5ae0H thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Toddzilla
29 Sep 14 09:16:25
RT @BlinkX90: $VOXX will be shocked if they don't pick this up,360Fly, 360 view action cam, looks really good, launch later this yr http://…
rishi
29 Sep 14 07:50:31
RT @BlinkX90: $VOXX will be shocked if they don't pick this up,360Fly, 360 view action cam, looks really good, launch later this yr http://…
@super_trades
29 Sep 14 07:13:48
RT @BlinkX90: $VOXX will be shocked if they don't pick this up,360Fly, 360 view action cam, looks really good, launch later this yr http://…
kcprinters
29 Sep 14 07:11:08
@BlinkX90 $VOXX launch end of October, delays hurt image thou so they need to deliver this time!
Blink
29 Sep 14 07:07:38
$VOXX will be shocked if they don't pick this up,360Fly, 360 view action cam, looks really good, launch later this yr http://t.co/Pv3jiaUDLx
Blink
29 Sep 14 06:44:15
$VOXX Action camera/Cyber Security product Catalysts: Catalyst #1: Action cameras seem to be the hot... http://t.co/l6CKNZQXQN
Russell Barbour
29 Sep 14 05:51:32
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/uBX7WCneox #stocks $VOXX $EKSO #trading $RWLK
PennyStock Zone
28 Sep 14 20:19:04
$4,911 profit verified here: http://t.co/pjklR5ae0H thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Russell Barbour
28 Sep 14 18:15:43
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/EfuNMUT9XP #stocks $VOXX $EKSO #trading $RWLK
Investors Hangout
28 Sep 14 11:15:17
DennyT: VOXX Filings and Disclosure $VOXX $DXM $X $CEU.TO http://t.co/EoS9nMLzsH
Investors Hangout
28 Sep 14 11:15:05
DennyT: VOXX Filings and Disclosure $VOXX $DXM $X $CEU.TO http://t.co/ilALzno6Td
DennyT
28 Sep 14 10:45:31
VOXX Filings and Disclosure $VOXX $DXM $X $CEU.TO $C Opinion Today,Candlesticks,Close,News,Is this one to watc http://t.co/EpTkQQu1UQ
lookn4wins
28 Sep 14 09:59:11
$DXM Chart $DXM Most recent stock chart and technical analysis. $MBLY $XLB $VOXX $SLW $XLP $YPF http://stockch http://t.co/0AeJ6ftuOm
Investors Hangout
28 Sep 14 08:48:43
danrocks: $PFF Hitting Buzz $DIA $VOXX $PBR $EWZ $SBUX http://t.co/sFOeiNxxOX
Investors Hangout
28 Sep 14 08:48:20
danrocks: $PFF Hitting Buzz $DIA $VOXX $PBR $EWZ $SBUX http://t.co/MSHYagB47H
danrocks
28 Sep 14 08:34:57
$PFF Hitting Buzz $DIA $VOXX $PBR $EWZ $SBUX http://t.co/RdoJewPDGz
chartguy89
28 Sep 14 07:52:44
UGAZ Stock Chart $UGAZ $VOXX $CYOU $SLV http://t.co/zzoBhGZObZ http://t.co/JP7sFVoopA
leahanne
28 Sep 14 07:31:37
$BHP Bhp Billiton Limited (BHP) 59.83 -0.14 (-0.23%) $WMT $VOXX $SBUX http://t.co/vLIodVaN4k
Investors Hangout
28 Sep 14 07:12:45
danrocks: $VOXX Starting to get interesting $IBB $HD $CRM http://t.co/7ZHtP73bUJ
Investors Hangout
28 Sep 14 07:12:42
danrocks: $VOXX Starting to get interesting $IBB $HD $CRM http://t.co/wf2gm6SbrR
danrocks
28 Sep 14 06:58:58
$VOXX Starting to get interesting $IBB $HD $CRM $XLP $QLD http://t.co/NVcM7vYDsB
Russell Barbour
27 Sep 14 15:56:47
Wow Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/MZbMJA7M69 $EMES $HDSN $VOXX #stocks
@super_trades
27 Sep 14 12:43:40
RT @St0ckReviews: $4,911 profit verified here: http://t.co/d7Vci9JgRk thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $L…
Russell Barbour
27 Sep 14 11:34:19
Wow Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/teIGbYWWdI $EMES $HDSN $VOXX #stocks
PennyStock Zone
27 Sep 14 09:14:20
$4,911 profit verified here: http://t.co/d7Vci9JgRk thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Russell Barbour
27 Sep 14 03:43:25
Wow Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/teIGbYWWdI $EMES $HDSN $VOXX #stocks
PennyStock Zone
27 Sep 14 01:15:07
$4,911 profit verified here: http://t.co/pjklR5ae0H thanks to Super_Trades for the alert! $VOXX $MXC $CDZI $MAGS $ADPT $LPCN $IKNX $FSI
Russell Barbour
26 Sep 14 23:59:10
Wow Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/teIGbYWWdI $EMES $HDSN $VOXX #stocks
Toddzilla
26 Sep 14 19:34:35
RT @Niko_Lee_510: $VOXX Going to be adding on the dips going into EO October. DD to see the potential of this under valued stock. Gonna be …
Brooks
26 Sep 14 18:33:12
RT @Niko_Lee_510: $VOXX Going to be adding on the dips going into EO October. DD to see the potential of this under valued stock. Gonna be …
Niko
26 Sep 14 17:35:53
$VOXX Going to be adding on the dips going into EO October. DD to see the potential of this under valued stock. Gonna be sweeeeet!
Russell Barbour
26 Sep 14 09:52:37
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/EfuNMUT9XP #stocks $VOXX $EKSO #trading $RWLK
BNK Invest
26 Sep 14 08:58:30
Commit To Buy $VOXX International At $7.50, Earn 8.4% Annualized Using Options #stockoptions http://t.co/uw3r7Kxf59
kcprinters
26 Sep 14 07:25:57
should really just trade in this market - swings are ugly in account right now $VOXX $CDZI $FSI (sold 1/2 green at least there)
Russell Barbour
26 Sep 14 04:27:59
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/uBX7WCneox #stocks $VOXX $EKSO #trading $RWLK
Russell Barbour
26 Sep 14 01:17:01
Wow Super_trades has made over $2 MILLION in the last year!! check out his chart http://t.co/MZbMJA7M69 $EMES $HDSN $VOXX #stocks
StocksBuzz
25 Sep 14 22:55:37
I will sell $voxx tomorrow don't like the daily setup too bearish at this point like the go pro idea though
				
				
  +Follow January 10, 2014 9:16AM
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