Apple
Amazon.com
Netflix
Chipotle
Priceline
Most people have at least a few of these, and some of the other hot stocks, in their portfolio. If you owned them since the 2009 lows, you've cashed in big.
How good have the returns been in these glamour stocks since March 9, 2009?
Amazon: 211%
Apple: 300%
Chipotle: 464%
Priceline: 538%
Netflix: 581%
Impressive, indeed. But the well known stocks aren't the only game in town.
There are companies you may never even have heard of, some of which are much smaller or in industries that are considered less "glamorous" by investors, whose returns matched or, in some cases, surpassed this list of the glamour stocks during the same time period.
How could that be? What company could beat Apple???
These 5 little known stocks have also been champions off the 2009 lows. There's nothing glamorous about any of them but check out their returns for the same period as the so-called hot stocks.
1. The pawn shop operator: 231%
2. A fertilizer and grain storage provider: 244%
3. An industrial manufacturer of compressors around since 1859: 347%
4. The specialty resources provider to the oil and gas industry: 360%
5. An auto retailer: 764%
Just who are these companies?
1. EZCORP
2. The Andersons
3. Gardner Denver
4. CARBO Ceramics
5. Lithia Motors
Not too bad for companies most investors have never heard of. But the good news is that all 5 of these companies still have solid fundamentals including rising earnings estimates and attractive valuations. The "story" is still intact with these companies. All 5 of them are Zacks #1 Rank (strong buy) or Zacks #2 Rank (buy) stocks.
1. The Pawn Shop Operator
EZCORP Inc. (EZPW) operates 500 pawn shops and 500 short-term consumer loan stores in the U.S., Mexico and Canada. In its fiscal second quarter results, revenue jumped 19% to $131 million. Same-store revenue also climbed 12%. The company raised full year guidance in April.
It's valuations are still excellent.
Forward P/E: 12.4
PEG: 0.8
Expected EPS Growth: 30%
EZCORP is a Zacks #2 Rank (buy). The rally off the lows has been impressive.
2. The Fertilizer and Grain Storage Provider
The Andersons (ANDE) is an Ohio-based agribusiness company with offering fertilizers, grain storage and distribution, ethanol, specialty turf products and rail car leasing. The company reported a record first quarter as earnings per share jumped to 93 cents, blowing out the Zacks Consensus by 19 cents. Sales jumped 39%.
The Andersons is cheap.
Forward P/E: 9.7
PEG: 0.8
Expected EPS Growth: 16.4%
The Andersons is a Zacks #2 Rank (buy) stock. It has been a bumpier ride off the March lows for this stock.
3. An Industrial Manufacturer In Business Since 1859
Gardner Denver, Inc. (GDI) has weathered plenty of recessions and depressions in its time. The manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems which started out in Illinois with one location in 1859 is now a global player with 40 manufacturing facilities around the world.
The company had a record first quarter as revenues soared 26%. It also easily beat the Zacks Consensus Estimate by 20%.
Forward P/E: 16.5
PEG: 0.9
Expected EPS Growth: 43%
Gardner Denver is a Zacks #2 Rank (buy) stock. The company has attractive valuations despite the shares soaring.
4. The Specialty Resources Provider
CARBO Ceramics Inc. (CRR) is one of the world's largest suppliers of ceramic proppant for fracturing oil and gas wells. The company reported the best quarter in its history on Apr 28 as revenue rose 22% compared to the year ago quarter on strong ceramic proppant demand in the natural gas and liquids-rich plays such as Eagle Ford, Permian and the Bakken. Ceramic proppant demand is hot!
CARBO is the most expensive of our unknown stocks.
Forward P/E: 27.6
PEG: 1.1
Expected EPS growth: 55.5%
The company is a Zacks #1 Rank (strong buy). Shares took off in the last 8 months as the energy story heated up.
5. The Auto Retailer
Lithia Motors (LAD) has been selling automobiles since 1946 when its first retail store was opened in Oregon. Its retail stores now include 86 locations in 12 states. Left for dead by investors during the recession due to the near collapse of the auto industry, the company, which also sells used cars and provides maintenance, has rebounded.
In the first quarter, revenue soared 31.3% as new vehicle same store sales rose 41%, used vehicle same store sales jumped 17% and service/body and parts sales increased 8%. Its western markets are seeing the economic recovery.
Forward P/E: 12.2
PEG: 0.4
Expected EPS growth of 50.8%
Shares traded as low as $2.01 on March 9 before surging off the low. It hasn't been a straight up shot though. But if you held on through the ups and downs, its return is more than double the return on Apple's shares during the same period.
Don't Overlook the Unknown Companies
While there's nothing wrong with investing in the hot glamour stocks, if you widen your search beyond the well known names you might find a hidden gem that pays off just as big.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her at twitter.com/traceyryniec.
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