3 “Strong Buy” stocks under $15
As inflation hit a new 40-year high last month, Interest rate hike of 75 basis points in July raises concerns that the economy will slide into recession in the coming months. Therefore, despite a labor market healing, resilient consumer spendingand better than expected corporate earnings, the market is expected to remain highly volatile.
In this context, low-priced stocks with strong fundamentals could be ideal choices to benefit from their strong long-term upside potential.
Blueknight Energy Partners, LP (BKEP), Extreme Networks, Inc. (OUTSIDE) and Viemed Healthcare, Inc. (VMD) are currently trading below $15, but have strong fundamentals and solid growth prospects. These stocks are rated Strong Buy in our own POWR Rankings system.
Blueknight Energy Partners, LP (BKEP)
BKEP owns, operates and develops a diversified portfolio of complementary midstream energy assets. It provides integrated terminal, storage, processing, gathering and transportation services to companies engaged in the production, distribution and marketing of crude oil and asphalt products.
For its fiscal 2022 first quarter ended March 31, 2022, BKEP’s total revenue increased 5.1% year-on-year to $28.46 million. The company’s operating profit was $7.49 million, up 3.8% from the same period last year. It had cash and cash equivalents of $1.05 million as of March 31, 2022.
Its gross profit margin of 45.3% over the last 12 months is 15.5% higher than the industry average of 39.2%. The company’s trailing 12-month ROTC of 19.5% is 284.1% higher than the industry average of 5.1%. Over the past month, the stock has gained 1.8% to close the last trading session at $4.59.
BKEP’s POWR ratings reflect this promising outlook. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.
It has a B grade for growth, quality and sentiment. Click here to see additional ratings for BKEP’s value, momentum and stability. BKEP is ranked No. 1 out of 12 stocks in the A rating MLP – Other industry.
Extreme Networks, Inc. (OUTSIDE)
EXTR provides wired and wireless network infrastructure equipment, software and services for enterprises, data centers and service providers.
It markets its products to commercial, government, healthcare, service provider and education customers, focusing on metropolitan enterprises and service providers worldwide.
On June 7, 2022, EXTR expanded its ExtremeCloud portfolio by introducing new SD-WAN and AIOps with digital twin capabilities that strengthen security, improve application performance, and reduce operational risks and costs.
EXTR also introduced the 5720 Universal Switch, the latest in a series of high-performance, feature-rich wired switches for enterprise deployments that automate network operations, streamline network provisioning, and improve security with support for Extreme Fabric Connect support. EXTR is expected to see strong demand from businesses in the coming months.
For its third quarter of fiscal 2022 ended March 31, 2022, EXTR’s total net revenue increased 12.7% year-over-year to $285.51 million. The company’s non-GAAP gross profit was $165.61 million, representing a 6.2% year-over-year improvement. Its non-GAAP operating profit was $35.66 million for the quarter, representing a 24.6% increase over the prior year period.
EXTR’s non-GAAP net income was $27.42 million, up 32.6% from the prior year period. Its non-GAAP EPS rose 31.3% year-over-year to $0.21. The company had $166.57 million in cash as of March 31, 2022.
Analysts expect an EPS estimate of $0.77 for the 2022 fiscal year ending December 31, 2022, indicating a 35.1% increase over the prior year period. It has exceeded Street EPS estimates in each of the past four quarters, which is impressive.
The consensus revenue estimate of $1.10 billion for the same fiscal year represents a 9.3% year-over-year improvement. Its EPS is expected to grow at a rate of 20% per year over the next five years.
Its gross profit margin of 57.3% over the last 12 months is 13.3% above the industry average of 50.5%. The company’s trailing 12-month ROTC margin of 11.2% is 163.3% higher than the industry average of 4.2%. Over the past month, the stock has gained 27.1% to close the last trading session at $11.07.
EXTR’s POWR ratings reflect this promising outlook. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system.
It has a B rating for growth, value and quality. Click here to see additional ratings for EXTR sentiment, stability and momentum.
EXTR is ranked #1 out of 53 stocks in the C rating Technology – Communication/Networking industry.
Viemed Healthcare, Inc. (VMD)
VMD provides home durable medical equipment (DME) and post-acute respiratory care services to patients. It provides respiratory disease management solutions, including treatment, invasive and noninvasive ventilation, and related equipment and supplies, to patients with chronic obstructive pulmonary disease (COPD).
It provides neuromuscular care, oxygen therapy services, sleep apnea management solutions and/or equipment.
For the first quarter of fiscal 2022 ended March 31, 2022, Desjardins Securities’ revenue increased 13.5% year-over-year to $32.26 million. The company’s gross profit was $19.74 million, representing an increase of 11.3% over the prior year period. Its operating income was $2.25 million for the quarter, representing a 68.8% increase over the prior year period.
While its net income rose 4.6% year-over-year to $1.76 million, its EPS was unchanged at $0.04. As of March 31, 2022, the company had $29.25 million in cash and cash equivalents.
The consensus EPS estimate of $0.26 for the 2022 fiscal year ending December 31, 2022 indicates a 19.7% year-over-year improvement. It has exceeded Street’s revenue estimates in each of the past four quarters, which is impressive. Analysts expect Desjardins Securities’ revenue to be $131.30 million for the same fiscal year, an increase of 12.2% over the prior year period.
Its gross profit margin of 62.4% over the last 12 months is 13.3% above the industry average of 55%. The company’s trailing 12-month EBITDA margin of 19.5% is 354.9% above the industry average of 4.3%. Over the past month, the stock has gained 45.4% to close the last trading session at $7.81.
Desjardins Securities’ POWR ratings reflect its strong outlook. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system. Also IIt has an A rating for quality and a B rating for growth, stability and sentiment.
In addition to the POWR Ratings we just highlighted, VMD’s Value and Momentum ratings can be seen here. VMD is ranked No. 3 out of 83 shares in the C rating Medical services industry.
BKEP shares were trading at $4.59 per share on Friday afternoon, down $0.00 (0.00%). Year-to-date, the BKEP has gained 42.07%, compared to a -16.20% rise in the benchmark S&P 500 over the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a particular interest in researching market inefficiencies. She is passionate about educating investors, so they can succeed in the stock market. After…