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Zacks Investment Ideas feature highlights: Travelport Worldwide, MarineMax, Express, Wendy's and Primo Water

For Immediate Release

Chicago, IL- April 29, 2016 – Today, Zacks Investment Ideas feature highlights Features: Travelport Worldwide (TVPT), MarineMax Inc (HZO), Express Inc (EXPR), Wendy’s (WEN) and Primo Water Company (PRMW).

5 Stocks Under $20 to Buy Now

I wanted to take a look at the Zacks Rank and scan for a good play for this investment idea. Seeing as we are in the middle of earnings season I thought it would be a good idea to use price as my determining factor. Who doesn’t like a stock that is more than a Hamilton ($10) but less than a Jackson ($20)?

I also limited my results to Zacks Rank #1 (Strong Buy) stocks. With a strong Zacks Rank comes a very high probability of higher earnings estimates. Let’s take a look at five stocks that are seeing positive earnings estimate revisions and are between $10-$20.

Travelport Worldwide (TVPT) is a solution provider for the global travel and tourism industry. The stock trades for $14 and change and is of course a Zacks Rank #1 (Strong Buy). The company topped the Zacks Consensus Estimate on February 18 in reporting EPS of $0.19 compared to the $0.13 estimate. The $0.06 beat translated to a 46% positive earnings surprise and as a result the stock soared 16% in the session following the report.

The valuation on TVPT is also very attractive and was recently discussed in further detail in this “ Bull Of The Day” article.

MarineMax Inc (HZO) is just shy of the top end of our price range. At $19 and change this approximately $500M market cap company is a boat dealer. They sell new and used recreational and fishing boats.

HZO has beaten the Zacks Consensus Estimate in each of the last three quarters. The most recent beat was on April 26, with the company reporting $0.10 when the Zacks Consensus Estimate was calling for $0.07. That three cent beat translates to a 42% positive earnings surprise. The stock moved higher by nearly 4% in the session following the release.

The valuation of HZO is very interesting. It trades in line with the industry average in terms of forward PE, but the price to book and price to sales multiple shows the stock trading at a significant discount to the industry average. The stock is definitely worth a deeper look.

Express Inc (EXPR) is also near the upper end of the dollar range we are using. The company is a specialty retailer of apparel and targets consumers between the age of 20-30. EXPR is a Zacks Rank #1 (Strong Buy) and also has Value and Growth Style scores of “A.”

The company has topped the Zacks Consensus Estimate in each of the last six quarters. The beats have ranged from 1 cent to as much as a dime. The positive earnings surprises have ranged from as low as 3% in the most recent quarter to 57% in the April 2015 quarter.

Retail has been a difficult segment to invest in this year, but this stock is certainly worth a deeper review. The valuation at 11x forward earnings is less than half the industry average of 25x and also sports lower price to book and price to sales multiples as well.

Wendy’s (WEN) doesn’t get the press that it’s much larger competitor does, but it is a Zacks Rank #1 (Strong Buy) and is at the low end of our price range at just over $11. The $3B fast food company sports a stiff multiple of 30x forward earnings, so let’s see why it gets such a big multiple.

The earnings history for WEN is mixed, with the company beating the Zacks Consensus Estimate in three of the last six quarters. They also missed two times in the last six and met one time. The thing is, the company never beat or missed by more than 1 cent.

The valuation is rather stiff, with high forward PE, price to book and price to sales multiples. One reason for the premium valuation is that WEN is expected to see earnings growth of 10% this year while the industry average is looking for a contraction of 3.2%. That alone is a good reason for a premium valuation.

Primo Water Company (PRMW) is also on the low end of the range with a $11 price tag. This $287M market cap company provides purified water and water dispensers. The company is slated to report earnings on May 3.

The stock is a Zacks Rank #1 (Strong Buy) and also sports a stiff valuation in terms of forward PE. The stock trades at 95x forward earnings, nearly four times the 25x industry average multiple. The other metrics like price to book and price to sales have PRMW trading at a discount to the industry average. Like WEN the reason for this could be the fact that analysts are calling for a 17.5% growth in earnings for 2016 while the industry average is looking at a contraction of 4.4%.

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TRAVELPORT WWD (TVPT): Free Stock Analysis Report
 
MARINEMAX INC (HZO): Free Stock Analysis Report
 
EXPRESS INC (EXPR): Free Stock Analysis Report
 
WENDYS CO/THE (WEN): Free Stock Analysis Report
 
PRIMO WATER CP (PRMW): Free Stock Analysis Report
 
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