Wednesday, June 09, 2010

With the Market Tanking, Why are These Three Stocks Up?

Since the beginning of the year, the S&P 500 dropped 6.8%. Just the last couple months, and even the last several day, the stock market has been performing miserably. But amazingly, there are over 60 stocks that have outperformed the S&P 500 by over 50%. How do these companies do it?

Three of those stocks have either no debt or very low debt, have price to earnings ratios below 15, and have market caps over $1 billion. SanDisk Corp. (SNDK) has performed admirably, up 40.7% year to date. The manufacturer of NAND-based flash storage memory card products has a PE ratio of 11.7, and a price earnings growth ratio of a very favorable 0.69. (Remember, below 1 means that the stock is underpriced, over 2 means the stock is over-priced.) Revenues for the latest reported quarter were up about 65%. Although the stock was down 28 cents today, it jumped 1.81 in the aftermarket.

Impax Laboratories Inc. (IPXL), a pharmaceutical company that produces bio-equivalent and brand-name drugs, is up 40.7% for the year. The stock sports a great PE ratio of 6.85, and a very nice PEG ratio of 0.78. The company has no debt. Revenue growth for the latest quarter was up an amazing 448.8% and earnings grew year-over-year, by an outrageous 5,825.4%.

The Children's Place Retail Stores, Inc. (PLCE) is up 40.3% since the beginning of January. This debt-free children's specialty apparel retailer carries a PE of 14.7 and a reasonable PEG of 1.19. The company just reported earnings a few days ago; earnings up 18.7% on a 5% revenue increase.

If you are looking for other stocks that might perform as well as these, you should check out High Cash, No Debt, High Yield Stocks, and No Debt High Yield Stocks.


No comments: