Four Stocks With Growing EPS Near Their 52-Week Lows

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Jun 30, 2015

With these articles, thanks to GuruFocus All-In-One Screener, I want to highlight stocks that got a strong price correction, and that are trading near their 52 weeks low but that can be good for investors, since they have growing earnings over the last years.

HCP Inc (HCP)

HCP, Inc. or Healthcare Property Investors, Inc. a REIT, invests primarily in real estate serving the United States healthcare industry. The company acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers and has investments in the five healthcare segments: senior housing, life science, medical office, hospital and skilled nursing.

HCP is a member of the S&P 500 Dividend Aristocrat Index, simply meaning that the company has maintained a highly predictable dividend record for over 25 years, even so the current yield of 6.20% has a payout ratio of 240%.

The stock has been as high as $49.61 and as low as $36.20 in the last 52 weeks and is now -25.60% from its 52-week high and +1.96% from its 52-week low.

Earnings per share rose by 46.30% over the last five years and 14.60% over the last 10 years.

Recently, the company’s executive vice president and chief investment officer stepped down. The new CEO, Lauralee Martin wants to significantly reduce HCP’s concentration with HCR while it is down 25%. Although HCP is considered battle-tested, while new CEO is less-experienced as a REIT CEO, gaining valuable real-time experience leading the enterprise through difficult times.

During the last quarter the company Manning & Napier Advisors, Inc sold out their shares, while Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) increased their stakes.

Synalloy Corp (SYNL)

The company was first organized in 1945 under the Blackman Uhler Industries name as a distributor of textile dyes. During the 1960s, the company diversified into the specialty chemicals and metals arenas through several acquisitions including Bristol Metals. Its name was changed to Synalloy Corporation in 1967 at which time it became a public company.

Now the company operates in two segments: the Metals Segment and the Specialty Chemicals Segment.

For the first quarter the company had notable results:

Net sales rose by 4% when compared to the same quarter of 2014. It also reported 16% adjusted EBITDA gain and company's cash balance increased by $175,000 during the first quarter of 2015 .

The stock has been as high as $18.84 and as low as $13.62 in the last 52 weeks and is now -27.18% from its 52-week high and +0.73% from its 52-week low.

Earnings per share rose by 66.30% over the last five years and 150% over the last 12 months.

During the last quarter, Arnold Van Den Berg (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) reduced their stakes, while Jim Simons (Trades, Portfolio) increased his position by 69.42%.

Keurig Green Mountain Inc (GMCR)

Keurig Green Mountain, formerly Green Mountain Coffee Roasters, is a publicly traded specialty coffee and coffeemaker company founded in 1981 .

The company is recognized for its award-winning beverages, innovative Keurig brewing technology, and socially responsible business practices.

Following USDA report that indicated that forecast coffee consumption in the United States will have a 1.25% decline from the “year that ends in September." However GMCR saw its pod sales increase by 7%, there are indications that this trend may reverse or slowdown by the possible fall of coffee demand in the most recent quarter.

The company has recently announced a new system, the Keurig 2.0, that purportedly allows users to brew cold beverages, including sodas, at home.

The stock has been as high as $158.87 and as low as $77.53 in the last 52 weeks and is now -51.99% from its 52-week high and +0.25% from its 52-week low.

Earnings per share rose by 59% over the last five years and 56.70% over the last 10 years.

During the last quarter, Pioneer Investments (Trades, Portfolio) and Manning & Napier Advisors, Inc increased their stakes. RS Investment Management (Trades, Portfolio) sold out its stake and Louis Moore Bacon (Trades, Portfolio) bought the stock for the first time.

Hercules Technology Growth Capital Inc (HTGC)

HTGC is the largest non-bank lender to venture capital-backed companies at all stages of development in the technology, energy technology, and life science sectors. The company's customers includes privately held companies and public companies.

Hercules' deep sector expertise, geographic presence and its strong capital base have made Hercules the lender of choice for more than 320 innovative companies.

HTGC price has dropped 11.86% during the last three months. The company has received recommendation from many analysts. Two analysts have rated the company as a strong buy. The shares has been rated as hold from five Wall Street Analysts. Five analysts have suggested buy for the company. Underperform rating was given by one analyst..

The stock has been as high as $16.99 and as low as $11.40 in the last 52 weeks and is now -31.61% from its 52-week high and +1.93% from its 52-week low.

Earnings per share rose by 43.30% over the last five years; even so they are reporting a drop of 33% on the last 12 months.

During the last quarter just NWQ Managers (Trades, Portfolio) traded shares of the company. It increased its stake by 20.91% to 404,700 shares and is now the only guru holding the company with 0.56 shares outstanding held.

Conclusions

The above companies are trading near their 52-week lows, and most of them are just waiting for a upward trend to start. Earnings are growing, but this doesn’t mean the price will start to rise soon.

ticker 52 weeks low distance Earnings growth rate (5 years)
HCP +1.96% +46.30%
SYNL +0.73% +66.30%
GMCR +0.25% +59.00%
HTGC +1.93% +43.30%