Concerns over the Fed’s aggressive interest rate hike in July as inflation surged to 9.1% last month and a potential recession have led to a broad-based market sell-off earlier this week. However, oil and gas prices falling to levels last seen before the Russia-Ukraine war and a steady 3.6% unemployment rate for the fourth consecutive month are raising hopes about moderate inflation.
However, the stock market volatility is not expected to ease anytime soon. Therefore, this could be an opportune time to scoop up quality stocks trading at attractive prices to benefit from their rebound.
TETRA Technologies, Inc. (TTI), Target Hospitality Corp. (TH), Envela Corporation (ELA), Blueknight Energy Partners, L.P. (BKEP), and Assertio Holdings, Inc. (ASRT) are currently trading below $15. So, it could be wise to take a detailed look at their fundamentals for making a buy-and-hold decision.
TETRA Technologies, Inc. (TTI)
TTI is a diversified oil and gas services company that operates through Completion Fluids & Products Division and Water & Flowback Services segments. The company provides completion fluids and associated products and services, water management solutions, frac flow back, and production well testing.
For its fiscal 2022 first quarter ended March 31, 2022, TTI’s total revenues increased 68.2% year-over-year to $130.04 billion. The company’s gross profit came in at $32.42 billion, representing a 312% year-over-year improvement. Its adjusted income from operations came in at $7.17 billion, compared to a loss of $5.32 billion in the year-ago period.
TTI’s adjusted EPS came in at $0.06 versus a $0.04 loss per share in the prior-year period. As of March 31, 2022, the company had $32.85 million in cash and cash equivalents.
Analysts expect an EPS estimate of $0.22 for fiscal 2022 ending December 31, 2022, indicating an increase of 540% from the prior-year period. The consensus revenue estimate of $529.47 million for the same fiscal year represents a 36.4% year-over-year improvement. Its EPS is expected to grow at a rate of 29% per annum over the next five years.
The company’s forward EBITDA growth of 27% is 4.3% above the industry average of 25.9%. The stock has gained 28.2% year-to-date to close the last trading session at $3.64.
TTI’s POWR Ratings reflect this promising outlook. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
It has an A grade for Growth and Sentiment. Click here to see the additional ratings for TTI’s Value, Quality, Momentum, and Stability. TTI is ranked #16 of 46 stocks in the Energy - Services industry.
Target Hospitality Corp. (TH)
TH is a specialty rental and hospitality services company that focuses on building, owning, and operating housing communities across energy and government end markets.
It operates through Hospitality & Facilities Services – South; Hospitality & Facilities Services – Midwest; Government; and TCPL Keystone segments. It provides cost-effective and customized accommodations, culinary services, and hospitality solutions.
TH’s total revenue for its fiscal 2022 first quarter ended March 31, 2022, increased 76.6% year-over-year to $80.34 million. The company’s adjusted gross profit came in at $40.72 million, indicating a 70.4% rise from the year-ago period. Its operating income came in at $12.38 million for the quarter versus an operating loss of $4.11 million in the prior-year period.
TH’s net income came in at $494,000, compared to a loss of $13.14 million in the year-ago period. Its EPS came in at $0.01 versus a $0.14 loss per share in the prior-year period. As of March 31, 2022, the company had $5.82 billion in cash and cash equivalents.
The consensus EPS estimate of $0.10 for fiscal 2022 ending December 31, 2022, represents a 1% rise from the prior-year period. Analysts expect TH’s revenue to be 333.13 million for the same fiscal year, indicating a 14.3% year-over-year improvement. The company’s EPS is expected to grow at a 15% rate per annum over the next five years.
The company’s forward operating cash flow growth of 22.6% is 139.9% above the industry average of 9.4%. Its forward EBIT growth of 292.3% is 1078.2% higher than the 24.8% industry average. The stock has gained 237.1% year-to-date to close the last trading session at $12.
TH’s POWR Ratings reflect this promising outlook. The stock has an overall B grade, equating to Buy in our proprietary rating system.
It has an A grade for Growth and Sentiment and a B grade for Quality. Click here to see the additional ratings for TH’s Value, Stability, and Momentum. TH is ranked #2 of 22 stocks in the Travel - Hotels/Resorts industry.
Envela Corporation (ELA)
ELA primarily buys and sells jewelry and bullion products to individual consumers, dealers, Fortune 500 companies, municipalities, school districts, and other organizations. It buys and sells various forms of gold, silver, platinum, and palladium products and numismatic items and provides jewelry and watch repair services.
Its re-commerce businesses are conducted through distributors, resellers, brick-and-mortar stores, and online.
On April 22, 2022, ELA’s subsidiary Echo Environmental Holdings, LLC, R2-certified sustainability solutions and data sanitization company, signed an agreement to purchase property for its next solar-recycling facility near its Chandler IT asset-disposition (ITAD) facility in Mesa, Arizona.
This will help Echo expand its capacity to recycle solar panels, PV cells, inverters, and other PV-system components, and recycling will reduce landfills, recaptures raw materials, and recovers value.
ELA’s sales for its fiscal 2022 first quarter ended March 31, 2022, increased 86% year-over-year to $47.42 million. The company’s gross profit came in at $9.71 million, indicating a 54% rise from the prior-year period. Its operating income came in at $2.86 million, representing a 46.9% rise from the prior-year period.
ELA’s net income came in at $2.65 million for the quarter, up 31.8% from the year-ago period. Its EPS rose 42.9% year-over-year to $0.10. As of March 31, 2022, the company had $11.50 million in cash and cash equivalents.
The consensus EPS estimate of $0.51 for fiscal 2022 ending December 31, 2022, indicates a 37.8% year-over-year improvement. It surpassed Street EPS estimates in each of the trailing four quarters, which is impressive. Analysts expect ELA’s revenue to be $178.94 million for the same fiscal year, representing a 26.9% rise from the prior-year period.
The company’s forward operating cash flow growth of 34.8% is 269.2% above the industry average of 9.4%. Its forward EBIT growth of 40% is 61.2% higher than the 24.8% industry average. The stock has gained 84.8% year-to-date to close the last trading session at $7.52.
ELA’s POWR Ratings reflect its solid prospects. The stock has an A grade for Growth and Sentiment.
In addition to the POWR Ratings grades we have just highlighted, one can see ELA’s Value, Quality, Momentum, and Stability ratings here. ELA is ranked #21 of 46 stocks in the Specialty Retailers industry.
Blueknight Energy Partners, L.P. (BKEP)
BKEP owns, operates, and develops a diversified portfolio of complementary midstream energy assets. It provides integrated terminaling, storage, processing, gathering, and transportation services for companies engaged in producing, distributing, and marketing crude oil and asphalt products.
For its fiscal 2022 first quarter ended March 31, 2022, BKEP’s total revenue increased 5.1% year-over-year to $28.46 million. The company’s operating income came in at $7.49 million, representing a rise of 3.8% from the year-ago period. It had cash and cash equivalents of $1.05 million as of March 31, 2022.
The company’s EPS has grown 231.1% over the past year, 769.5% above the industry average of 26.6%. The stock has gained 37.3% year-to-date to close the last trading session at $4.53.
BKEP’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, equating to Strong Buy in our proprietary rating system.
It has a B grade for Quality, Sentiment, and Growth. Click here to see the additional ratings for BKEP’s Momentum, Value, and Stability. BKEP is ranked #2 of 12 stocks in the A-rated MLPs - Other industry.
Assertio Holdings, Inc. (ASRT)
ASRT is a specialty pharmaceutical company offering differentiated products to patients utilizing a non-personal promotional model. The company offers oral suspension, suppositories, tablets, nasal sprays, and capsules.
On March 31, 2022, ASRT collaborated with BlinkRx, a leading digital pharmacy, to support healthcare professionals and patients undergoing treatment with Otrexup, developed by Antares Pharma, Inc. BlinkRx's program helps reduce barriers that patients encounter while accessing their medications and benefit from transparent low prices and free home delivery.
This will help ASRT leverage its digital platform and existing pharmacy hub capabilities with a new direct-to-patient model to serve patients better.
For its fiscal 2022 first quarter ended March 31, 2022, ASRT’s total revenues increased 36.1% year-over-year to $36.54 million. The company’s income from operations came in at $11.56 million, representing a 54% year-over-year improvement.
ASRT’s non-GAAP net income came in at $17.53 million, indicating a 70.3% rise from the prior-year period. Its non-GAAP EPS increased 40.7% year-over-year to $0.38. As of March 31, 2022, the company had $61.39 million in cash and cash equivalents.
Analysts expect an EPS estimate of $0.40 for fiscal 2022 ending December 31, 2022, indicating a rise of 1433.3% from the prior-year period. The consensus revenue estimate of $131.73 million for the same fiscal year represents an 18.7% year-over-year improvement. Its EPS is expected to grow at a rate of 25% per annum over the next five years.
The company’s EBITDA has grown 2587.1% over the past year, 19018.2% above the industry average of 13.5%. The stock has gained 28.4% year-to-date to close the last trading session at $2.80.
ASRT’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system.
It has an A grade for Growth, Value, Sentiment, and Quality. Click here to see the additional ratings for ASRT’s Momentum and Stability. ASRT is ranked #6 of 169 stocks in the Medical - Pharmaceuticals industry.
TTI shares were unchanged in after-hours trading Friday. Year-to-date, TTI has gained 31.69%, versus a -18.31% rise in the benchmark S&P 500 index during the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market.
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