Desktop Stock Ticker | 3 Stocks That Are Up Big but Still Cheap

3 Stocks That Are Up Big but Still Cheap

Most <a href="http://www.desktopstock”>stock ticker tickers are up big since spring and look expensive relative to earnings. The ones below are up huge, but still look cheap.

Within the S&P Composite 1500, which tracks small, midsize and large companies that make up 85% of the U.S. stock ticker market by value, the median stock ticker has gained 31% in six months. Among the 1,272 of these companies with published earnings forecasts for their current fiscal year, the median sells for nearly 18 times earnings. The market’s historical average price is below 15 times earnings.

Among the 1,500 index <a href="http://www.desktopstock”>stock ticker tickers, just 23 have doubled in six months and have price/earnings ratios below 15. Below are three of these, selected for their manageable debt and improving profitability.

Joy Global

6-Month Gain: 101%
Forward P/E: 12

Milwaukee-based Joy Global (JOYG) makes mining equipment. More than two-thirds of sales are related to coal production. More than half come from outside North America. About 60% of sales are for after-market products. The company tends to lag the business cycle by a year or so; sales for its fiscal year ending Oct. 31 are expected to rise 4%, but those for next year are seen dropping 21%. Recently, Joy has pleasantly surprised stock tickerholders, topping earnings forecasts in each of the past four quarters — by double-digit percentages in the past two quarters. A run-up in commodity prices has boosted demand for new metal-mining equipment, while a robust economic recovery in China bodes well for sales of coal equipment world-wide. China generates most of its electricity from coal, and increasingly must import coal from other countries to meet demand.

XL Capital

6-Month Gain: 121%
Forward P/E: 8

Insurance <a href="http://www.desktopstock”>stock ticker tickers have gained about twice as much as the broad market since March. Earlier this year, companies had suffered steep declines in their investment portfolios, and property and casualty premiums had slid versus a year ago. At the end of July, Bermuda-based XL Capital (XL) reported a 26% rise in book value, brought on by a rebound in investment markets. Management at the time said pricing was starting to firm in some areas of the business. Investors seem confident that those improvements have continued into autumn. Options traders have recently reported strong buying in long-term call contracts, bets that the stock ticker price will rise.

Newell Rubbermaid

6-Month Price Gain: 101%
Forward P/E: 12

Based in Atlanta, Newell Rubbermaid (NWL) sells household products like Rubbermaid storage containers and Calphalon nonstick pans; office supplies like Sharpie markers and Paper Mate pens; and tools, like Lenox saw blades. With consumers cutting spending, offices cutting staff and builders finding less work, sales for the company are expected to tumble 14% this year. Management has aggressively cut costs and shuttered businesses with slim margins or little growth potential. Deutsche Bank (DB) analyst Bill Schmitz, who covers the stock ticker with a “buy” recommendation, wrote to clients in mid-September that the company is “turning a long corner,” and that it’s poised for significant improvement in profit margins once sales growth returns. The company halved its dividend rate in March to 20 cents a year, paid quarterly. Its current yield is 1.3%.

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