These are the Top 2 Post-Pandemic Winners to Keep an Eye On
The reopening of infrastructure development projects and rising need for transportation services for goods with the economy gradually returning to nor...
The reopening of infrastructure development projects and rising need for transportation services for goods with the economy gradually returning to normal should help electrical equipment manufacturer Preformed Line Products (PLPC) and transportation services provider P.A.M. Transportation (PTSI) grow substantially in the coming quarters. So, we think these potential post-pandemic winners are worth keeping an eye on.
The re-engagement of economic activities this year positions several pandemic-hit industries well for a solid rebound. So, stocks from these industries are expected to deliver solid returns in the coming months. While the technology sector was the pandemic winner and is expected to continue performing well in the post-pandemic environment, due to continuing digital transformation, the reopening of industrial activities should help many non-tech stocks deliver bigger returns in the coming months.
Following 6.4% growth in the first quarter of 2021, the Conference Board expects U.S. Real GDP growth to be 9% in the second quarter and 6.6% this year.
Therefore, we believe the electrical equipment manufacturer Preformed Line Products Company (PLPC) and transportation services provider P.A.M. Transportation Services, Inc. (PTSI) will witness a strong rebound in their businesses. And their ability to capitalize on the economic recovery should help their stocks deliver exceptional returns in the coming months. So, we think these two names could be ideal choices for investors looking to invest in post-pandemic winners.
Preformed Line Products Company (PLPC)
PLPC designs and manufactures products and systems used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable operator, information and other industries worldwide. The company markets its products through a direct sales force and through manufacturing representatives.
For its fiscal first quarter ended March 31, 2021, PLPC's net sales increased 14.3% year-over-year to $117.55 million. The company's gross profit came in at $40.19 billion, up 22.1% from the prior-year period. Its operating income was reported at $10.77 million, which represented a 109% year-over-year improvement. While its net income increased 94.1% year-over-year to $7.18 million, its EPS increased 95.9% from the prior-year period to $1.45. As of March 31, 2021, the company had $34.69 million in cash and cash equivalents.
PLPC stock price has climbed 50.2% over the past year and 55% over the past nine months. It closed yesterday's trading session at $76.10.
PLPC's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Value and Momentum and a B for Growth, Stability and Quality. To see additional POWR Ratings for PLPC's Sentiment, click here.
PLPC is ranked #1 of 87 stocks in the B-rated Industrial - Equipment industry.
Note that PLPC is one of the few stocks handpicked by our Chief Value Strategist, David Cohne, currently in the POWR Value portfolio. Learn more here.
P.A.M. Transportation Services, Inc. (PTSI)
PTSI is a truckload transportation and logistics company. The company's freight consists primarily of automotive parts, expedited goods, consumer goods and manufactured goods. In addition to offering dedicated, dry van, expedited, international, and logistics solutions, it provides brokerage and logistics services.
PTSI's total operating revenues for its fiscal first quarter, ended March 31, 2021, increased 15.3% year-over-year to $148.86 million. The company's operating income increased 43.9% year-over-year to $13.65 million. Its net income came in at $11.95 million for the quarter, compared to a $1.30 million net loss in the prior-year period. PTSI's EPS was $2.08, compared to a $0.23 loss per share in the year-ago period. As of March 31, 2021, the company had $332 million in cash, cash equivalents and restricted cash.
A $132.20 million consensus revenue estimate for the current quarter, ending June 30, 2021, represents a 42.2% improvement year-over-year. It surpassed the Street's EPS in three of the trailing four quarters. The stock's EPS is expected to grow at a 20% rate per annum over the next five years.
PTSI has gained 69.3% over the past year and 43.4% over the past nine months. It ended yesterday's trading session at $54.95.
PTSI's POWR Ratings reflect this promising outlook. The stock has a B grade for Value, Growth, Momentum and Quality. Click here to see the additional ratings for PTSI (Stability and Sentiment).
PTSI is ranked #1 of 22 stocks in the A-rated Trucking Freight industry.
PLPC shares were trading at $76.38 per share on Friday morning, up $0.28 (+0.37%). Year-to-date, PLPC has gained 11.93%, versus a 14.70% rise in the benchmark S&P 500 index during the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She's passionate about educating investors, so that they may find success in the stock market.These are the Top 2 Post-Pandemic Winners to Keep an Eye On appeared first on StockNews.com
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