Many investors like to scan the market for stocks that are ready to bounce. Whether the companies are attractive value plays after enduring a tough decline in their share prices or just high-growth prospects because of fundamentals, we try to spot these opportunities at Singular Research. The following five companies are all names we like over next 12 months.
Even better, they may may benefit from a January rally to start the year. Year-to-date, these stocks are down and we believe are being sold for tax losses.
|
Company |
EV/EBITDA |
Room to Target |
|---|---|---|
| The Cash Store Financial Services, Inc. (CSFS) | 4.0 | 169% |
| Unifi Inc. (UFI) | 6.4 | 94% |
| Integramed America Inc. (INMD) | 3.3 | 74% |
| Miller Industries Inc. (MLR) | 3.3 | 68% |
| Banco Latinoamericano de Comercio Exterior, S.A (BLX) | N/A | 40% |
Cash Store Financial Services
CSFS is a leading provider of Payday loans and other short-term financial products in Canada. The company is a broker and does not take credit risk with its own funds. The company has aggressively increased its geographical presence and leveraged its presence by offering additional financial products. The company also pays a dividend of about 7 percent. We have a Buy rating on the company with a price target of $18.
Unifi Inc.
Unifi produces and processes polyester and nylon yarns. The company provides partially oriented, textured, dyed, twisted, and beamed yarns, as well as textured nylon and covered spandex products, and sells them to other yarn manufacturers, knitters and weavers that produce fabric for the apparel, hosiery, furnishings, automotive, industrial, and other end-use markets. Despite lower-than-expected volumes and higher materials costs that will lead to a soft start of the year, Singular has maintained BUY rating on Unifi with reduced a price target of $15.
IntegraMed America
IntegraMed America manages outpatient centers that offers products and services to patients and providers in the fertility and vein care segments of the health industry in the United States. The company’s Q3 revenues matched our forecast and we see double-digit sales growth for both the fertility center and vein clinic businesses. With shares trading at 3.3x EV/EBITDA, we think IntegraMed America is undervalued. Therefore, we have a BUY rating on the company with a price target of $14 per share.
Miller Industries
Miller Industries is the world’s largest vehicle towing and recovery equipment manufacturer. The company has a range of wrecker, car carrier and trailer bodies. While Q3 sales increased more than 30 percent on strong government and commercial demand and earnings per share increased 67 percent, the company did miss our view due to lower gross margins on a quarter-over-quarter basis. We’re also adjusting our estimates to reflect the uncertainty of government orders going forward. With that said, we do have a Buy rating on the stock and a price target of $27.
Banco Latinoamericano de Comercio Exterior, S.A.
Bladex, as it is otherwise known, provides trade financing to commercial banks, middle-market companies, and corporations primarily in Latin America. The company operates through three divisions: Commercial, Treasury, and Asset Management. The company is also currently yielding a 5 percent dividend.
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