Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

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