As a result of the stock market’s impressive rally over the past year, most stocks are now overpriced or trading at high valuations. In this scenario, it is very difficult to find stocks trading below $5 that still have plenty of upside…
Growth stocks in particular have outperformed over the past year, as evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 32.8% gains. However, investors’ concerns over the overvaluation of many of these stocks and a rotation away from growth to value have been causing a price correction for growth stocks lately. This is evidenced by SPYG’s 8.1% decline over the past month. Thus, we think it wise to invest in low-priced growth stocks that are fundamentally sound.
Harmony Gold Mining Company Ltd. (HMY – Get Rating), VAALCO Energy, Inc. (EGY – Get Rating), Stealth Gas, Inc. (GASS – Get Rating), and Blueknight Energy Partners GP (BKEP – Get Rating) are all trading under $5 currently but they may not be available at these price levels for long. These companies have a history of revenue and earnings growth and we think they are well-positioned to grow further.
Harmony Gold Mining Company Ltd. (HMY – Get Rating)
HMY is a gold exploration and mining company. The company has operations in South Africa and Papua New Guinea primarily. HMY has gained 9.1% over the past year to close yesterday’s trading session at $4.32.
HMY recently completed the acquisition of Mponeng mine and Mine Waste Solutions. Since assuming full ownership of these assets, they have produced more than 3,220 kilos of gold.
HMY’s trailing-twelve-month revenue grew at a CAGR of 17.2% over the past five years. The company’s trailing-twelve-month EBITDA grew at a CAGR of 24.7% over the past three years.
HMY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
It has an A grade for Growth, Value, and Momentum. In the B-rated Miners – Gold industry, it is ranked #16 of 46 stocks.
In total, we rate HMY on eight different levels. Beyond what we stated above we also have given HMY grades for Sentiment, Stability, and Quality. Get all the HMY ratings here.
VAALCO Energy, Inc. (EGY – Get Rating)
EGY focuses on exploring and producing natural gas and crude oil. The company has operations primarily in West Africa. EGY has returned 87.9% over the past year to close yesterday’s trading session at $3.25.
The company recently completed the acquisition of a 27.8% working interest in Etame Marin block, offshore Gabon. The acquisition comes as an addition to a 31.1% interest already held by EGY, essentially doubling its total production and reserves in the area.
EGY’s trailing-twelve-month revenue grew at a CAGR of 0.6% over the past three years. Its trailing-twelve-month EBITDA grew at a CAGR of 5.5% over the past three years. Also, EGY’s EPS is estimated to…
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