I’ve been adding some new stocks to the community spreadsheet recently. I started doing this either after discovering something in a write up or seeing something in an observed trend. For example, I added a basket of stocks from the discount retailer segment after seeing their impressive rally last week. None really made the cut BTW.
But some of the stocks I added appear somewhat promising, at least according to their 1YPEG. Here are three I’ve found that may warrant additional research:
Stamps.com (STMP) - TTM P/E 17, YoY EPS Growth: 100%, YoY Rev Growth: 59%, 1YPEG: .17
I see Stamps.com as sort of the corollary to SHOP, but much more extensive since their services cater to a much larger base of customers. Stamps.com makes it easier for small businesses to ship their products to consumers. They negotiate volume rate discounts with USPS on your behalf and pass these savings onto you (with them taking their cut of course). They provide the equipment for you to weigh your packages and print your own labels at home. The labels are encoded so the end customer doesn’t see the actual cost to ship - it was at a discount after all, less than the official price USPS will tell you. Stamps.com has been doing a boom business recently.
Installed Building Products (IBP)- TTM P/E 33, YoY EPS Growth: 84%, YoY Rev Growth: 34%, 1YPEG: .39
IBP is an insulation installer. They are the second largest insulation installer serving the residential new construction market in the United States. I see this as a corollary to LGIH, but again, they cater to a much larger base of customers. If you think new construction is going to go up this year, you know these houses all must come with insulation.
A M N Healthcare Svcs (AHS) - TTM P/E 19, YoY EPS Growth: 150%, YoY Rev Growth: 43%, 1YPEG: .12
AHS is a placement agency - for physicians and nurses. Their goal is to become a one-stop shop for hospitals, providing recruiting, hiring, training and other services. Among healthcare workers the numbers retiring over the next few years will roughly equal the number coming in. However, this is a problem. ObamaCare has added 20 million people since it was enacted in 2010. This expands the number of people seeking treatment. Combined with rising demand AMN will have its hands full - for the next several years - as doctor shortages are expected to be high.
I think these three are interesting plays on three different industry trends: Housing, E-Commerce and Healthcare. I think they are interesting because they are like an investment in the “trend” moreso than in a specific company in the segment - much like an investment in AMT is an investment in the proliferation of mobile devices and you can invest in the trend without having to be right in the mobile device winner.
I submit these as thoughts for further research. I have not taken a position in any of these companies, yet. If anyone has experiences with these companies and would care to share your thoughts - please do.
Happy Memorial Day everyone and thanks for reading.