What companies are tomorrow's big winners? In our ongoing series, I'm chatting with Fool analysts and advisors to find out the stocks they're watching and the catalysts that would signal it's time to buy. Today, Motley Fool Hidden Gems analyst Jeremy Myers shares four companies on his watchlist. (For your convenience, you can now create your own version at MyWatchlist.com, your free customized hub to follow the performance and Fool coverage of the companies you care about.)
New stores paying for themselves
There's something to be said for a company that can open a new store and recoup 100% of its investment in the first year. That's the case for Lumber Liquidators
Jeremy recommended the company as part of the Fool's 11 O'Clock Stock series, and his only hesitation today is about the price of the stock. It currently trades between $23 and $24 per share. "That's a little high for my liking; $22 is my magic number."
Finding cash in the Citi's pockets
As a result, the company lowered its guidance last week, but it wasn't as bad as analysts were expecting, so shares jumped roughly 14%. Having missed that catalyst, Jeremy is going to keep watching for a pullback.
Cornering the blood market
There's something a little disarming about a company with the ticker BLUD, but the Department of Justice and the Food and Drug Administration were concerned with more than the ghoulish nature of Immucor's
Immucor's shares rose nearly 6% after the company announced the investigation was closed earlier this month. Now it just has to deal with an FDA probe into its manufacturing, another catalyst that could send the stock further upward (assuming the company can clean up its act to FDA standards). Jeremy feels this growing company with a strong razors-and-blades business model is poised for success, especially with activist investing firm ValueAct Capital now on its board.
A leader in a deeply depressed industry
There's little mystery that these are not good times for the defense industry. With massive cuts looming, stock prices are depressed across the board. But Raytheon
For Jeremy, Raytheon's net payout yield made it too good to pass up. With $500 million in dividends and another $1.1 billion in share buybacks over the past 12 months, the company sports a total payout yield in the neighborhood of almost 10%. While he has yet to make a purchase for himself, he became comfortable enough after watching the company for months to instruct his mom to buy.
And that's exactly why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. The Fool owns shares of Lumber Liquidators, which is a Motley Fool Rule Breakers recommendation. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.