Today, July 26, 2022, Dow Jones is trading at ~31,868, the S&P 500 at ~3,932, and Nasdaq at ~11,624 While inflation remains high and things are still uncertain, the keen investor needs to ask: “what are the best stock picks today?”.
Well, we did our research and came up with 5 stocks that fulfill the criteria of profitability, cheapness, and stability. In this post, we will briefly go over the business of each company, what the analysts think about them, and some basic recent fundamental data.
Note: It’s always wise to do your own analysis if you find any of those stocks interesting before you invest in any of them.
Let’s get right into it…
1. Ultra Clean Holdings Inc (NASDAQ: UCTT)
Business
Ultra Clean Holdings Inc, founded in 1991 and headquartered in Hayward, California, develops and supplies modules, production tools, and subsystems for the semiconductor industry.
More specifically, the company offers gas delivery systems, precision robotic solutions, and automation production and industrial equipment products; top-plate assemblies, wafer cleaning subsystems, chemical delivery modules, frame assemblies, and process modules.
Ultra Clean Holdings’ customers range from firms in the energy, industrial, medical, flat panel, and research equipment industries to companies in the semiconductor capital equipment industry.
Forecast
Based on the 5 analysts’ 12-month median price target of $96 and the stock’s trading price, UCTT now has a 91.45% upside. The highest price target is $85 which represents a 150.36% upside and the lowest is $45 which represents a 32.54% upside.
Fundamentals
| P/E ratio | 12.75x |
| P/B ratio | 1.7x |
| ROE (Last Year) | 14.15% |
| Revenue Growth (YoY) | 59.46% |
| EPS Growth (YoY) | 42.32% |
| Current Ratio | 2.42x |
| Interest Coverage | 7.69x |
| D/E ratio | 1.26x |
Source: UCTT Annual Report
2. Sterling Infrastructure Inc (NASDAQ: STRL)
Business
Sterling Infrastructure Inc, founded in 1955 and headquartered in The Woodlands, Texas, is a construction corporation focused on residential construction projects, infrastructure rehabilitation, and heavy civil infrastructure construction.
The company does business via 3 segments:
- Transportation Solutions (roads, highways, airfields, ports, bridges, light rail, etc.)
- E-Infrastructure Solutions (services directed to blue-chip companies in the distribution center, data center, e-commerce, and warehousing, mixed-use, energy, and multi-family sectors.
- Building Solution (single-family home foundations)
Forecast
Based on 1 analyst’s 12-month price target of $35 and the stock’s trading price, STRL now has a 49.25% upside.
Fundamentals
| P/E ratio | 11.01x |
| P/B ratio | 1.91x |
| ROE (Last Year) | 18.07% |
| Revenue Growth (YoY) | 10.81% |
| EPS Growth (YoY) | 43.33% |
| Current Ratio | 1.23x |
| Interest Coverage | 5.54x |
| D/E ratio | 2.41x |
Source: STRL Annual Report
3. AZZ Inc (NYSE: AZZ)
Business
AZZ Inc, founded in 1956 and headquartered in Fort Worth, Texas, is an American provider of specialty electrical equipment, various industrial solutions, and engineered services.
The company does business through 2 segments:
- Metal Coatings (generating most of the revenue)
- Infrastructure Solutions
Forecast
Based on the 2 analysts’ 12-month median price target of $57 and the stock’s trading price, AZZ now has a 39.91% upside. The highest price target is $62 which represents a 52.18% upside and the lowest is $52 which represents a 27.63% upside.
Fundamentals
| P/E ratio | 12.14x |
| P/B ratio | 1.52x |
| ROE (Last Year) | 12.59% |
| Revenue Growth (YoY) | 7.59% |
| EPS Growth (YoY) | 120.39% |
| Current Ratio | 2.56x |
| Interest Coverage | 17.72x |
| D/E ratio | 0.69x |
Source: AZZ Annual Report
4. Patrick Industries Inc (NASDAQ: PATK)
Business
Patrick Industries Inc, founded in 1959 and headquartered in Elkhart, Indiana, is a manufacturer of building products and materials for manufactured housing and recreational vehicles.
The company operates through two segments:
- Manufacturing (selling vinyl and laminated products that include shelving, cabinets, furniture, countertops and bath fixtures)
- Distribution (selling ceiling and prefinished wall panels, along with plumbing and electrical products for the manufactured-housing and RV industries.
One of the company’s RV customers contributes to a significant portion of revenue.
Forecast
Based on the 6 analysts’ 12-month median price target of $82.5 and the stock’s trading price, PATK now has a 39.9% upside. The highest price target is $104 which represents a 76.36% upside and the lowest is $63 which represents a 6.83% upside.
Fundamentals
| P/E ratio | 6.1x |
| P/B ratio | 1.78x |
| ROE (Last Year) | 29.3% |
| Revenue Growth (YoY) | 64% |
| EPS Growth (YoY) | 129.28% |
| Current Ratio | 2.25x |
| Interest Coverage | 6.07x |
| D/E ratio | 2.45x |
Source: PATK Annual Report
5. G-III Apparel Group Ltd (NASDAQ: GIII)
Business
G-III Apparel Group Ltd, founded in 1956 and headquartered in New York City, NY, is a textile company.
Specifically, it makes footwear, apparel, and accessories that are sold under its brands.
The company has a significant portfolio of proprietary and licensed brands, anchored by 5 international power brands: Calvin Klein, Tommy Hilfiger, Donna Karan, DKNY, and Karl Lagerfeld.
G-III operates through 2 segments:
- Wholesale Operations (selling products under brands licensed by them from third parties and under private label brands and its own brands)
- Retail Operations (G.H. Bass, DKNY, and Wilsons Leather retail stores)
Forecast
Based on the 8 analysts’ 12-month median price target of $27.5 and the stock’s trading price, GIII now has a 26.2% upside. The highest price target is $45 which represents a 106.51% upside and the lowest is $20 which represents an 8.21% downside.
Fundamentals
| P/E ratio | 5.38x |
| P/B ratio | 0.71x |
| ROE (Last Year) | 13.16% |
| Revenue Growth (YoY) | 34.61% |
| EPS Growth (YoY) | 743.7% |
| Current Ratio | 3.23x |
| Interest Coverage | 6.45x |
| D/E ratio | 0.8x |
Source: GIII Annual Report
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