LONDON — A popular way to dig out reasonably priced stocks with robust growth potential is through the “growth at a reasonable price,” or GARP, strategy. This theory uses the price-to-earnings to growth ratio to show how a share’s price weighs up in relation to its near-term growth prospects — a reading below 1 is generally considered decent value for money.
Today I am looking at Vodafone (LSE: VOD ) (NASDAQ: VOD ) to see how it measures up.
What are Vodafone’s earnings expected to do?
Metric 2014 2015 EPS Growth 3% 7% P/E Ratio 11.2 10.5 PEG Ratio 3.3 1.6
Source: Digital Look.
Vodafone is expected to keep earnings per share ticking higher in the year ending March 2014, following the similarly marginal improvement to the tune of 5% punched in 2013. Earnings growth is forecast to pick up slightly in 2015, according to City brokers.
Best Cheap Stocks To Own Right Now: Progress Software Corporation(PRGS)
Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massa c husetts.
- [By Jake L’Ecuyer]
Progress Software (NASDAQ: PRGS) shares tumbled 11.15 percent to $22.82 after the company issued a weak Q1 forecast.
FireEye (NASDAQ: FEYE) was also down, falling 9.35 percent to $81.20 after the company’s secondary offering lead to fear on the street.
- [By Jake L’Ecuyer]
Progress Software (NASDAQ: PRGS) shares tumbled 10.11 percent to $22.82 after the company issued a weak Q1 forecast.
21Vianet Group (NASDAQ: VNET) was down, falling 6.18 percent to $25.94 on Q4 results.
- [By John Kell and Lauren Pollock var popups = dojo.query(“.socialByline .popC”); ]
Progress Software Corp.(PRGS) trimmed its expectations for the fiscal first quarter, as the business-software provider said results were hurt by lower license sales. Shares dropped 12% to $22.27 premarket.
- [By Rich Duprey]
Believing it should have a single, cohesive platform for the development of cloud and mobile application development technologies, Progress Software (NASDAQ: PRGS ) announced this morning it was selling its Apama complex event processing solution to Software AG for an undisclosed sum.
Best Cheap Stocks To Own Right Now: Express-1 Expedited Solutions Inc.(XPO)
XPO Logistics, Inc. provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. It operates in three segments: Express-1, Concert Group Logistics, and Bounce Logistics. The Express-1 segment offers ground expedited surface transportation services for freight. It operates a fleet ranging from cargo vans to semi tractor trailer units. The Concert Group Logistics segment provides domestic and international freight forwarding services through a network of independently owned stations. Its domestic freight forwarding services include air charter, expedites, and time sensitive services, as well as cost sensitive services comprising deferred delivery, less than truckload, and full truck load services; and international freight forwarding services consist of on-board courier and air charters, time sensitive services, less-than-container and full-container-loads, and vessel charters. This segm ent also offers documentation on international shipments, customs clearance and banking, trade show shipment management, time definite and customized product distributions, reverse logistics and on site asset recovery projects, installation coordination, freight optimization, and diversity compliance support services. The Bounce Logistics segment provides premium freight brokerage services for truckload shipments. The company serves approximately 4,000 retail, commercial, manufacturing, and industrial customers through 6 U.S. operations centers and 22 agent locations. It offers its services to the automotive manufacturing, automotive components and supplies, commercial printing, durable goods manufacturing, pharmaceuticals, food and consumer products, and high tech sectors. The company was formerly known as Express-1 Expedited Solutions, Inc. and changed its name to XPO Logistics, Inc. in September 2011. XPO Logistics, Inc. was founded in 1989 and is based in Buchanan, Mich i gan.
- [By Jake L’Ecuyer]
XPO Logistics (NYSE: XPO) shot up 7.06 percent to $30.01 after the company announced its plans to acquire Pacer International (NASDAQ: PACR) in a deal valued at $335 million.
- [By Travis Hoium]
What: Shares of XPO Logistics (NYSE: XPO ) jumped 13% today after announcing an acquisition.
So what: The company will pay $365 million for logistics provider 3PD, consisting of $357 million in cash an $8 million in XPO restricted stock. Is will use its own cash and borrow $195 million from Credit Suisse Group for the remainder of the purchase.
Best Cheap Stocks To Own Right Now: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
- [By Bloomberg]
Matthew Staver/Bloomberg via Getty Images Cerberus Capital Management’s $9 billion deal to merge Safeway (SWY) with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers. Safeway, the No. 2 grocery-store operator in the U.S., agreed Thursday to be acquired by Cerberus’s Albertsons for about $40 a share. The deal will unite two chains with locations across the country — especially in the West — and narrow Kroger’s (KR) lead as the nation’s top supermarket company. Cerberus, a private-equity firm that has spent years investing in the supermarket industry, will use the new company’s heft to combat a growing array of threats. Big-box retailers such as Walmart Stores (WMT) and warehouse clubs are increasingly targeting grocery customers, using their size and breadth of products to attract shoppers. Online food sellers and delivery services, including Amazon.com (AMZN), also have made neighborhood supermarkets less essential than before. “This merger will improve our competitive position,” Safeway Chief Executive Officer Robert Edwards, who will be in charge of the combined company, said Thursday on a conference call. “Our customers will benefit from significant cost saving synergies and a stronger management team.” Safeway shares fell as much as 6.3 percent to $37 in extended trading, reflecting concerns the deal may not close at the current price. The shares had increased 21 percent this year through the close of regular trading Thursday, outpacing the 1.6 percent gain of the Standard & Poor’s 500 Index. Blackhawk Network As part of the agreement, investors will get $32.50 a share in cash, plus stock in Safeway’s gift-card unit Blackhawk Network Holdings (HAWK), according to a statement Thursday. Safeway, based in Pleasanton, Calif., had said last month that it was in talks about a sale of the company. Assuming a diluted share count of about 235 million shares,
- [By GURUFOCUS]
Healthcare stocks in the Fund had a strong fourth quarter and year. CVS (CVS)’s 26% performance for the quarter is reflective of the fact that 10,000 Americans turn 65 every day and will for the next 15 years. Businesses that are able to serve this growing segment with improving service, innovation, technology, product quality and value should continue to win.
- [By Grace L. Williams]
CVS Caremark (CVS) has found the perfect prescription for stock market gains after reporting earnings results this morning.
For the quarter ended Dec. 31, CVS reported adjusted EPS of $1.12, up from 96 cents a year ago and ahead of analyst expectations of $1.11. Revenue rose to $32.8 billion from $31.4 a year prior and forecasts for sales of $32.6 billion. CVS also disclosed that it opened 60 new retail drugstores and closed one during the period.
Last week, CVS made headlines on the announcement that it would end tobacco sales and the market reacted accordingly. In a Barron’s Take, Teresa Rivas wrote, “With the number of U.S. smokers on the decline and regulation on the rise, CVS will likely more than make up for lost sales with public goodwill and a boost to its health-care brand. It also gets first mover advantage on a ban that may eventually have been forced on it.”
Raymond James analyst John Ransom notes that CVS has a healthy future:
First-quarter 2014 adjusted EPS guidance was actually raised to $1.03-$1.06 (up seven cents at the midpoint), suggesting better-than-expected near-term trends versus prior outlook. Net-net, fourth quarter capped another solid year out of CVS, with today’s stock price reaction likely less tied to the report itself and more focused on the…tobacco headwind offsets as well as initial comments with regard to the 2015 selling season and the retail competitive landscape (promotional activity high?).
Shares of CVS have advanced 2.7% to $68.74 at 3:0 p.m., trailing Walgreen’s (WAG) 5.3% rise to $63.87 but besting Rite Aid’s (RAD) 1.5% gain to $5.72.
- [By Sue Chang and Saumya Vaishampayan]
CVS Caremark Corp. (CVS) shares fell 0.9%. CVS said it would stop selling cigarettes and tobacco products in stores by Oct. 1. The change is estimated to cost the company $2 billion in annual revenues or 17 cents a share, but CVS said it won’t affect its 2014 per-share earnings guidance.
Best Cheap Stocks To Own Right Now: Capstone Turbine Corporation(CPST)
Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.
- [By Monica Gerson]
Capstone Turbine (NASDAQ: CPST) soared 14.29% to $2.24 in the pre-market trading after surging 7.10% on Monday.
Ballard Power Systems (NASDAQ: BLDP) shares jumped 10.17% to $7.58 in pre-market trading after jumping 30.30% on Monday.
- [By Dan Caplinger]
Capstone Turbine (NASDAQ: CPST ) will release its quarterly report on Monday, and investors have been increasingly optimistic about the microturbine maker’s immediate prospects. Yet, even though the company’s stock rose recently to its best levels in almost three years, Capstone still has to demonstrate that its niche offerings give it a viable market that is too insignificant for larger rivals General Electric (NYSE: GE ) and Caterpillar (NYSE: CAT ) to go after.
- [By Selena Maranjian]
Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST ) and Nokia (NYSE: NOK ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it’s poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.
Best Cheap Stocks To Own Right Now: Emerson Electric Company(EMR)
Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.
- [By Ben Levisohn]
That negative sentiment “flashed as a positive indicator,” Inch and Lau say, and some stocks appear to be “‘locked and loaded’ to meaningfully exceed forecast estimates.” Those include Rockwell Automation (ROK), Eaton (ETN) and Emerson Electric (EMR).
- [By Victor Selva]
On Dec.24, Mario Gabelli, the Chairman and Chief Executive Officer of GAMCO Investors, Inc. added Communications Systems Inc. (JCS) at an average price of $11.05 and currently holds 330,172 shares of the stock. It was the 5th time he added the stock during this year, which makes me feel that he is betting in favor of a positive future for the consumption of network capacity.
Recommendations of the Board
Communications Systems is engaged in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems, and through its Transition Networks business unit in the manufacture of media and rate conversion products for telecommunications networks.
Few months ago the firm announced a series of actions to increase revenues and improve profitability. The first change was to operate as a holding company, monitoring and supporting all the business units: Suttle, Transition Ne tworks (TN) unit and JDL Technologies. With this “new format”, each unit will operate with a high degree of autonomy. This will result in the reduction of labor costs, the emphasizing of accountability in the units as well as better recognition of performance. “While difficult decisions for the Board, we believe the changes we have taken to restructure our parent company as a holding company and to focus on individual business unit performance is in the best interest of our shareholders and will increase shareholder value” said Curtis A. Sampson, the Company’s Board Chair and Interim CEO. Furthermore, strategic investments in the TN unit such as marketing, sales and product development will boost revenues in the future.
Severe Warning Signs
Not all are good news, we found three severe warning signs issued by GuruFocus: Piotroski F-Score of 2 is low, which usually implies poor business operation; revenue has been in decline over the past 3 years and operating margi n has been in 5-year
Best Cheap Stocks To Own Right Now: MEDIWARE Information Systems Inc.(MEDW)
Mediware Information Systems, Inc., together with its subsidiaries, engages in the design, development, and marketing of software solutions targeting specific processes within healthcare institutions. The company offers software systems consisting of company’s proprietary application software, and third-party licensed software and hardware. It licenses, implements, and supports clinical and performance management, blood donor, and blood and biologic management products in the United States; and medication management solutions in the United States, the United Kingdom, Ireland, and South Africa. The company?s blood and biologics management solutions include HCLL Transfusion and HCLL Donor, which address blood donor recruitment, blood processing, and transfusion activities for hospitals and medical centers; BloodSafe suite of hardware and software that enable healthcare facilities to store, monitor, distribute, and track blood products; LifeTrak software for blood centers; a nd BiologiCare, a bone, tissue, and cellular product tracking software. Its medication management products comprise WORx, a pharmacy information system to manage inpatient and outpatient pharmacy operations; MediCOE, a physician order entry module; MediMAR, a nurse point-of-care administration and bedside documentation module; MediREC, which assists in achieving compliance with a Joint Commission mandate; and pharmacy management and electronic prescribing systems. The company?s performance management products include InSight software that tracks performance metrics to assist healthcare managers to manage performance. It also provides software installation and maintenance services, as well as billing and collection services to home infusion and home/durable medical equipment markets. The company markets its products primarily through its direct sales force. Mediware Information Systems, Inc. was founded in 1970 and is headquartered in Lenexa, Kansas.
- [By CRWE]
Mediware Information Systems, Inc. (Nasdaq:MEDW) plans to acquire the assets of Indianapolis-based Strategic Healthcare Group LLC (SHG), a leading provider of blood management consulting, education and informatics solutions.
Best Cheap Stocks To Own Right Now: Aegon NV(AEG)
AEGON N.V. provides life insurance, pensions, and asset management products and services worldwide. The company?s life insurance products include traditional, term, universal, whole, and other life insurance products sold as part of defined benefit pension plans, endowment policies, post-retirement annuity products, and group risk products; supplemental health insurance products comprise accidental death, other injury, critical illness, hospital indemnity, medicare supplement, and student health; specialty lines consists of travel, membership, and creditor products; and long term care insurance products for policyholders who require care due to a chronic illness or cognitive impairment. It also offers a range of savings and retirement products and services, including mutual funds, and fixed and variable annuities, savings accounts and investment contracts, segregated funds, guaranteed investment accounts, and single premium immediate annuities, as well as investment advice to individuals. In addition, the company offers employer solutions and pensions, such as retirement plans, pension plans, and pension-related products and services; investment products, including onshore and offshore bonds, and trusts; reinsurance products and solutions to life insurance and financial services companies; general insurance products comprising house, car, and fire insurance; and asset management products and services, including general account assets, unit-linked funds, and third party activities. AEGON N.V. markets its products through independent and career agents, financial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, and specialized financial advisors, as well as through online, direct, and worksite marketing. The company was founded in 1900 and is headquartered in The Hague, the Netherl ands.
- [By Will Ashworth]
Assuming it delivers on its outlook for 2014, its current free cash flow yield is a very enticing 20%. This isn’t a growth stock, but its brands still possess hidden value. As cheap stocks go, it’s very attractive.
Cheap Stocks to Buy: Aegon (AEG)
It’s not often that you can buy a $19 billion market cap for under 10 bucks. Aegon’s a Dutch insurance company that’s had a rough ride over the past few years, and its stock’s suffered as a result. In the late ’90s AEG stock traded around $60 — it hasn’t been anywhere close since. However, it’s got some good assets that should bear fruit in the years to come. Aegon has 12,000 employees in the Americas doing business primarily under the Transamerica brand, which has been a part of AEG since 1999.