|Written by GSCR Staff|
|Thursday, 07 August 2014 08:18|
Our theme continues this week with the theme only the strong shall survive this test in what looks like the beginning phase of a market correction.
Way back in May of 2013 we featured Nautilus, Inc. (NYSE – NLS - $11.64) in our 30-30 subscription service. The stock has had its ebbs and flows but is up over 53% over 15 month period. The real story is the 19% jump since last Friday. The Company reported outstanding 2Q14 financial results Tuesday, one of the reasons for the jump. Nautilus reported revenue and EPS of $48.5 million and $0.05 from continuing operations compared to consensus estimates of at $42.8 million and -$0.01. The Company has had great success with its MAX Trainer™ product, which won first place in the International Design Awards.
NLS is still very bullish from short to the long term on the Daily Moving Average technical indicator. A low PEG ratio of 1.4 also indicates a strong growth to earnings story. The Company continues to innovate and should be solid play in both the short and long term. A price target of $13 in 2014 is a level that should be surpassed.
The other stock that survived the trial is inTest Corporation (NYSE – INTT - $4.68), a stock we featured in the Market Monitor on June 1 of this year. The stock is up over 20% with the bulk of the jump coming since late last week. Again, just like NLS, the Company reported great 2Q14 financial results. Both the technical and simple fundamental screening makes INTT an attractive candidate with very bullish short to long term DMA and a PEG ratio just above 1 respectively.
inTest’s unique exposure to the semiconductor industry makes INTT a strong play. We think the stock can break through the $5 by the end of 3Q14.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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