The six stocks below have positive catalysts for future growth, profit margins of greater than 45%, latest quarter positive EPS percentage change, prices of greater than $15, average daily volume of greater than 400,000 shares, and are within 30% of their 52-week highs. These are bullish indicators regarding a stock's possible future performance. A robust profit margin is a trait of a notable name. A profit margin of approximately 50% implies the company is generating 50 cents of profit for each dollar of sales. Moreover, most of these stocks are trading well below consensus analysts’ estimates; some have recent upgrades and positive analyst comments.
Below is a table with detailed statistics regarding each company's current profit and earnings information followed by a brief review of each company, a summary of current analysts' estimates and up/downgrade activity followed by a chart of the company's key statistics and current performance.
Company Fundamentals Review
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Company Briefs
Continental Resources, Inc. (CLR) engages in the exploration, exploitation, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States. Continental Resources recently reported strong production and EBITDAX growth for the quarter ended March 31. Continental produced 51,663 barrels of oil equivalent per day (Boepd) for the first quarter of 2011, a 34 percent increase over production of 38,428 Boepd for the first quarter of 2010 and an eight percent increase over fourth quarter 2010 production of 48,034 Boepd.
The company is trading significantly below analysts' estimates. CLR has a median price target of $74 by 20 brokers and a high target of $92. The last up/downgrade activity was on June 14, when Robert W. Baird initiated coverage on the company with an Outperform rating.
Check Point Software Technologies Ltd. (CHKP) develops, markets, and supports a range of software, and combined hardware and software products and services for information technology security worldwide. Check Point Software Technologies recently reported record 2011 first quarter financial results. Total revenue was $281.3 million, representing a 15 percent increase year over year; non-GAAP operating income of $160.6 million, representing 57 percent of revenues; and non-GAAP EPS of $0.64, representing a 16 percent increase year over year.
The company is trading significantly below analysts' estimates. CHKP has a median price target of $60 by 17 brokers and a high target of $62. The last up/downgrade activity was on Jan. 6, when Macquarie downgraded the company from Outperform to Neutral.
ViroPharma Incorporated (VPHM), a biopharmaceutical company, engages in the development and commercialization of products that address serious diseases with a focus on products used by physician specialists or in hospital settings in the United States and internationally.
ViroPharma recently announced the European Commission has granted ViroPharma centralized marketing authorization for Cinryze® (C1 inhibitor [human]) in adults and adolescents with hereditary angioedema for routine prevention, pre-procedure prevention and acute treatment of angioedema attacks.
The company is trading significantly below analysts' estimates. VPHM has a median price target of $23 by 13 brokers and a high target of $27. The last up/downgrade activity was on Oct. 27, 2010, when Caris & Company downgraded the company from Buy to Above Average.
Visa Inc. (V) operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities
U.S. Bank, lead bank of U.S. Bancorp (USB), in partnership with Visa and Oberthur Technologies, recently announced its release of a dual interface payment solution that offers enhanced acceptance and compatibility with credit cards systems worldwide.
The company is trading significantly below analysts' estimates. V has a median price target of $25 by 18 brokers and a high target of $30. The last up/downgrade activity was on Dec. 17, 2010, when Wedbush initiated coverage on the company with a Neutral rating.
Baidu, Inc. (BIDU) provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including web pages, news, images, multimedia files, and blogs through the links provided on its websites.
Baidu music platform ting! formally launched on June 8. In addition, ting! also launched a "ting station" user opt for private radio, public radio, music radio began "his musical life," with public channels including rock stage, happy FM, 80 zone, and jazz cafes in 10 different styles of theme stations.
The company is trading significantly below analysts' estimates. BIDU has a median price target of $175 by 21 brokers and a high target of $200. The last up/downgrade activity was on Nov. 17, 2010, when Stifel Nicolaus initiated coverage on the company with a Buy rating.
SolarWinds, Inc. (SWI) designs, develops, markets, sells, and supports enterprise information technology infrastructure management software to IT professionals.
SolarWinds recently announced that it has entered into a definitive agreement to acquire privately-held TriGeo, a provider of log and event management software, for $35 million cash. The company expects the acquisition to close in the third quarter of 2011.
The company is trading below analysts' estimates. SWI has a median price target of $26 by nine brokers and a high target of $28. The last up/downgrade activity was on Mar. 1, when, Morgan Keegan initiated coverage on the company with a Market Perform rating.
Information was gathered from CNBC, Yahoo Finance and respective company websites. Based on the current market conditions I would suggest scaling in to any position to reduce risk. I believe all these stocks are currently undervalued and provide significant opportunities for long term investors.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CLR, CHKP, VPHM, V, BIDU, SWI over the next 72 hours.
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