Small Cap Network analyst Bryan Murphy has named Radioshack Corp., AXT Inc., and Talbot’s Inc. as his list of top value ideas within the small cap segment of the market. Each stock has fallen considerably in recent weeks, even though these corporations appear to have finally emerged from the recession’s effects. In all three cases, these names are better values than most of their peers.
AXT Inc. shares, as an example, plunged 40% in February on news that it fell short of analysts’ estimates for Q4’s earnings. The sharp dip overlooks the fact that 2010’s results were still quite strong, and that the stock is valued at nearly half the industry’s average.
Radioshack shares are down 41% since April of last year despite the reliable growth the company has cultivated since 2008. Both income as well as revenue have grown each of the last twelve quarters on a year over year basis as well as on a full-year basis since 2008. With earnings expected to swell at a faster 10% clip in 2011, the projected P/E is a mere 7.5.
Talbot’s shares have fallen 70% since April of last year on concerns that the company wasn’t going to break out of its sales slump seen in 2008 and 2009. It now appears it can though. The company returned to profitability in 2010, and 2011’s revenue is expected to be at least flat with last year’s. It’s something the company can finally begin to rebuild on.