Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Dow Trend Forecast Current State - 22nd Apr 21
Gold Rebounds Amid Positive Economic Reports - 22nd Apr 21
China's record first quarter fuels strong expansion in 2021 - 22nd Apr 21
Gold Price Next Key Level - 22nd Apr 21
Here's What to Look For When Hiring a Real Estate Agent - 22nd Apr 21
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Two Cheap Growth Stocks To Buy Now

Companies / Investing 2013 Jul 24, 2013 - 01:25 PM GMT

By: Money_Morning

Companies

Tim Melvin writes: Many investors know how to take their first profitable step in the search for ideal stocks to buy: Look for extraordinary growth potential selling at a significantly low valuation.

Even with markets up double-digits this year, there are still stocks to buy that are trading at a discount to what they're worth.


Now's a good time to look for these cheap stocks to buy, as earnings reports can sometimes ding a share price on missed revenue, even when the long-term outlook is strong.

Analysts often become too bullish too soon, and set up investors for short-term disappointment. They fail to explain that a positive long-term potential might not materialize in today's earnings reports.

Another thing to consider when hunting for the best cheap growth stocks to buy is if the stock has hit Wall Street's radar. Once Wall Street spreads the word to investors to pile in to a stock, the share price will start climbing and you'll miss some of the most explosive gains.

That's why it's most profitable to look for stocks to buy that aren't making major headline news. For example, the 15 companies profiled by Barron's this weekend as single-digit P/Es with good prospects are some of the biggest names on the market. Every investor has considered investing in these stocks to beef up portfolios.

But the best gains are found in stocks that Wall Street hasn't yet pumped money into...

So we found two stocks to buy now that are cheap and boast healthy outlooks.

Our energy pick took a hit this year but is on the rebound. The other is a penny stock with a one-year price target that's nearly twice where it's trading now.

As economic conditions slowly continue to improve, Wall Street and the big institutions will likely recognize the innate value in these growth stocks to buy now, and companies like the following will reap the rewards of increased buying activity.

C&J Energy Services: An Undiscovered Gem

C&J Energy Services (NYSE: CJES), a fracking play, is one of the best cheap growth stocks to buy now.

The shares currently trade at just seven times earnings and less than two times book value.
Insiders own more than 20% of the shares, so their interests are aligned with outside shareholders.

C&J Energy Services' earnings have been hurt as the country debated over the safety of fracking.

But shale gas and fracking are going to expand globally over the next decade and C&J Energy Services is well positioned to benefit.

C&J Energy Services has nine fracking fleets and 20 coiled tube units that are used in well completion and maintenance. About 71% of its revenue last year was derived from fracking.

In 2011, the company acquired Total Equipment and Services, which manufactures hydraulic tubing pressure pumping and other equipment used in drilling. The acquisition helps relieve manufacturing costs by almost 20%. Almost all of its equipment was manufactured in the last five years, giving the company one of the youngest fleets in the oil and gas industry today, which means replacement and maintenance costs should be low for years to come.

As an added plus for this stock, C&J Energy Services has a strong presence in the domestic drilling markets and is building infrastructure to expand internationally.

The company's earnings have risen at a rapid clip, yet this stock still feels undetected by Wall Street.

Even with triple-digit earnings growth, earnings should still increase by more than 20% a year for the next several years. And with renewed optimism in fracking, CJES' growth will likely carry into 2014.

Hudson Technologies: Room to Run

Hudson Technologies Inc. (Nasdaq: HDSN) is also among the more valuable growth stocks to buy now.

The company is a dominant player in a niche industry with large growth potential -- providing refrigerant and system services. But the real story is the fact that the company is the largest reclaimer of refrigerant gases in the country.

As various types of gases such as Freon become unavailable due to new regulations, Hudson becomes the only source for the product through their reclaiming operations. The widely used refrigerant R-22 is in the process of being phased out for environmental reasons and Hudson will become the largest provider of the gas to U.S. customers. By 2020, the agent will be completely phased out of virgin production and prices for reclaimed R-22 that Hudson provides will climb.

When Freon was phased out, prices went from $1 per pound to over $25 a pound and the same pricing pattern should develop with R-22.

Growing interest in cleaner energy and energy conservation are giving the company other opportunities that make this among the stronger growth stocks to buy. Hudson Technologies provides decontamination services and system optimization services for large companies. It's worked for 50 of the Fortune 500 companies.

Hudson's earnings have growing steadily over the past five years, but 2012 should be a breakout year for Hudson as the phase-out of R-22 begins.

The shares trade at just four times earnings right now, making them very affordable among growth stocks to buy.

The stock is even cheaper when you consider the opportunity for dramatic leaps in revenue and profits over the next several years. Institutions have largely ignored the stock and own just 40% of the shares. As more institutions become aware of the enormous growth potential, their buying activity will help push the shares higher.

Both C&J Energy Services and Hudson Technologies, with their exciting business prospects and low earnings multiples, seem like a steal.

Want more cheap stocks to buy now? Check out this penny stock that's up 10% in a few months...

Source :http://moneymorning.com/2013/07/23/two-cheap-growth-stocks-to-buy-now/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules