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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%.
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.