Despite the COVID-19 pandemic-induced economic disruptions, investors have remained upbeat, with all three benchmark indices recently hovering near their all-time highs. Furthermore, even though the current debt crisis at China’s real estate giant Evergrande, the Fed’s recent signal that a reduction in its monetary stimulus is coming, and Beijing’s crackdown on cryptocurrency have caused the key indexes to witness minor corrections, they have rebounded quickly.
Given this backdrop, we think under the radar stocks Live Ventures Incorporated (LIVE), SigmaTron International, Inc. (SGMA), Comstock Holding Companies, Inc. (CHCI), and SilverSun Technologies, Inc. (SSNT), which have witnessed exceptional price rallies over the past few months and are well-positioned to maintain their momentum, could be solid bets now.
Live Ventures Incorporated (LIVE)
LIVE, along with its subsidiaries, operates in the flooring, steel, and retail industries. The Las Vegas company operates through three segments: Flooring Manufacturing, Steel Manufacturing, and Retail.
In June, LIVE agreed to acquire Salomon Whitney LLC, a broker-dealer that operates under SW Financial. The company intends to expand and diversify its operational subsidiaries’ portfolio into the financial services industry with the acquisition.
During the third quarter, ended June 30, 2021, LIVE’s revenue increased 63% year-over-year to $69.1 million. The company’s operating income increased 37% year-over-year to $8.2 million over this period. Its gross profit increased 50% year-over-year to $25.1 billion, while its EPS grew 191% from the prior-year quarter to $6.35. The stock has gained 400.3% in price over the past year and 215.2% year-to-date.
LIVE’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
LIVE is also rated an A grade for Value, and a B for Growth and Quality. Within the B-rated Outsourcing- Business Services industry, it is ranked #14 of 48 stocks.
To see additional POWR Ratings for Momentum, Stability, and Sentiment for LIVE, click here.
SigmaTron International, Inc. (SGMA)
SGMA is an independent provider of electronic manufacturing services (EMS). The Elk Grove Village, Ill.-based concern provides EMS services for printed circuit board assemblies and fully built (box-build) electrical devices. The company serves primarily the industrial electronics, consumer electronics, and medical/life sciences sectors in the United States, Mexico, China, Vietnam, and Taiwan.
SGMA’s net sales increased 41.7% year-over-year to $85.74 billion in its first fiscal quarter, ended July 31, 2021. Its operating income came in at $3.47 billion, compared to a $787.33 million operating loss in the prior-year quarter. The company reported $8.80 billion in net income of, compared to a $900.67 million net loss in the first quarter of 2020. Its EPS amounted to $2.02, compared to a $0.21 loss per share in the same period last year. The stock has gained 244.1% in price over the past year and 116% over the past nine months.
SGMA’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. SGMA also has an A grade for Growth, and a B for Value and Sentiment. The stock is ranked #11 of 46 stocks in the B-rated Technology – Hardware industry.
Beyond the POWR Ratings grades I have just highlighted, you can see the SGMA ratings for Stability, Momentum, and Quality.
Comstock Holding Companies, Inc. (CHCI)
CHCI is a real estate developer and manager in the Washington, D.C. metro region. Asset Management and Real Estate Services are the two operational segments of the company. In addition, its environmental services group offers consulting and engineering, environmental research, cleanup, and project-specific solutions. CHCI is based in Reston, Va.
For the second quarter, ended June 30, 2021, CHCI’s revenue increased 40.4% year-over-year to $6.34 million. Its operating income came in at $492,000 over this period. The company’s net income surged 849.6% from its year-ago value to $11.21 million, while its EPS increased significantly from the prior-year quarter to $1.42.
CHCI’s EPS is expected to increase at the rate of 10% per annum over the next five years. The stock has returned 130.1% over the past year and 69.1% over the past nine months.
CHCI’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. CHCI is also rated a B grade for Momentum, Value, and Quality. Within the Real Estate Services industry, it is ranked #5 of 45 stocks.
Click here to see additional POWR Ratings for Growth, Sentiment, and Stability for CHCI.
SilverSun Technologies, Inc. (SSNT)
SSNT in East Hanover, N.J. is a software development, technology, and consulting company. The company offers training, technical support, professional services, and reselling enterprise resource planning software for financial accounting needs. It caters to small- and medium-sized enterprises in the United States that provide services and products to various end-users, manufacturers, wholesalers, and distributors.
In June, SSNT’s wholly owned subsidiary SWK Technologies, Inc. won the Avalara Top Partner Award for 2021 in the systems integrator category. The company won the prize for generating the most sales while exhibiting a passion for solution execution, customer engagement, and growth.
SSNT’s revenue increased 5.8% year-over-year to $10.23 billion in the second quarter ended June 30, 2021. Its gross profit grew 8.4% from its year-ago value to $4.27 billion. The company’s net income surged 288.8% year-over-year to 130.29 million, while its EPS increased 200% from the prior-year quarter to $0.03.
Analysts expect SSNT’s revenue to increase 17.6% year-over-year to $41 million in its fiscal year 2021. Over the past year, the stock has gained 155.8% in price. In addition, the stock has returned 124.5% so far this year.
It is no surprise that SSNT has an overall B rating, which equates to Buy in our POWR Ratings system. The stock also has an A grade for Momentum, and a B for Quality. In the Software – Business industry, it is ranked #13 of 60 stocks.
In addition to the POWR Ratings grades I have just highlighted, you can see the SSNT ratings for Growth, Value, Stability, and Sentiment here.
Click here to check out our Software Industry Report for 2021
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LIVE shares were trading at $38.16 per share on Monday morning, down $0.99 (-2.53%). Year-to-date, LIVE has gained 207.25%, versus a 19.74% rise in the benchmark S&P 500 index during the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
LIVE | Get Rating | Get Rating | Get Rating |
SGMA | Get Rating | Get Rating | Get Rating |
CHCI | Get Rating | Get Rating | Get Rating |
SSNT | Get Rating | Get Rating | Get Rating |