5. Metropolitan Health Networks (MDF) operates provider-service networks, arranging health-care services for Medicare Advantage beneficiaries. Its third-quarter net income more than doubled to $6.8 million and earnings per share more than tripled to 16 cents, boosted by a smaller float. Revenue inched up 3.4%. The operating margin jumped from 3.9% to 12%. The company has $42 million of cash and $520,000 of debt. Its stock sells for a trailing earnings multiple of 7.4 and a forward earnings multiple of 7.9, 53% and 44% discount to peer averages.
Expected Return: The model predicts that Metropolitan's stock will advance 31% to $5.62.