This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Stocks Under $7 With Upside

NEW YORK ( TheStreet) - US Airways (LCC), MEMC Electronic Materials (WFR), Micron Technology (MU - Get Report), Amkor Technology (AMKR - Get Report), Advantage Oil & Gas (AAV - Get Report) and Gran Tierra Energy (GTE - Get Report) are trading at less than $7 a share but are expected to outperform their peers and the broader markets, based on their respective 12-month price targets.

We have picked these stocks from sectors such as energy, airlines and semiconductor. They have average buy ratings of 57% and upside potential ranging from 55% to 141%.


6. MEMC Electronic Materials (WFR) manufactures silicon wafers. The company operates in segments such as semiconductor materials, solar materials and solar energy.

Net sales for the second quarter of 2011 were reported at $745 million, up 66% from the same quarter prior year. Sales were robust on greater sales volume for solar energy systems, improved solar wafer and semiconductor volumes, and wafer prices.

During the quarter, gross margin was 24.3% compared to 17.2% in the corresponding quarter of 2010 and 15.5% in the 2011 March quarter. Net income for the quarter was $47.3 million, vs. a net loss of $4.5 million in the 2011 March quarter and $13.8 million in the 2010 second quarter.

Capital expenditure for 2011 second quarter halved to $103 million as against $206 million in the first quarter of 2011. With cash and cash equivalents of $652 million and operating cash of $199 million at the end of June, the company is comfortably placed to fund its capex program, going ahead. The company estimates 2011 non-GAAP sales between $3.3 and $3.6 billion and non-GAAP EPS of $0.80 to $1.00. Analysts polled by Bloomberg foresee the stock gaining 55% over the next one year. The stock is trading at 7.8 times its 2011 earnings.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
WFR $0.00 0.00%
AAV $5.48 2.24%
AMKR $8.73 -1.19%
GTE $2.72 -0.37%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs