7 Laggards That Are Bargains In 2017: SHLD, GNC, CLDX, HBI, ALXN

- January 3, 2017

Stock laggards to buy: GNC -65%

GNC_stockGNC Holdings Inc (NYSE:GNC) may be my favorite laggard for 2017. That’s because every analyst hates it, even after a 65% loss.

GNC’s earnings have been weak; expectations are considered too high; and its product pricing is considered a nightmare. The company is in the middle of a major overhaul for prices, stores, and perhaps its business as it seeks an acquirer. Still, GNC is a highly profitable business with double digit operating margins.

Also, it trades at just 5x forward earnings, and pays an incredible dividend yield of 7.2%. Even if current expectations are too high, and GNC were to earn just $1.50/share instead of $2.12/share, GNC stock would be trading at only 7x forward earnings.

Regardless, GNC stock is dirt cheap, and that dividend makes it worthwhile.

Stock laggards to buy: ALXN -36%

ALXN_stockStudy failures, decelerating growth, and a CEO resignation are just a few of the many things that went wrong for Alexion Pharmaceuticals (NASDAQ:ALXN) in 2016. However, ALXN stock had been one of the best performing biotechs for more than a decade.

Its drug Soliris, is a blockbuster and really paved the way for how to commercialize rare and life threatening drugs.

With 15% growth expected in 2017, and M&A rumors galore, ALXN stock is offering investors a rare chance to buy it at a discount, 22x forward earnings. While 22 times earnings does not seem like much of a discount, it is when you consider growth, longevity, as well as Alexion’s likelihood to acquire or be acquired in the immediate future.

In other words, don’t expect ALXN stock to stay down for too long.

This entry was posted in Members, Portfolio Strategy, Timely Analysis Bookmark the permalink.
RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

One Trackback

  1. […] Read the full article from the Source… […]

Post a Comment

You must be logged in to post a comment.

Join the 100s Who Beat the Market with a BNL Membership

See What Current Members Are Saying

My Complete Access BNL Membership Includes

  • No contract. Guaranteed results. Cancel anytime.
  • Unrivaled Performance. The BNL Portfolio has outperformed the S&P 500 by 150% since October 1, 2015
  • Access. You know what goes in the BNL Portfolio, David’s Dividend Portfolio, and Eddy’s Options.
  • Alerts. You know when a trade is made in all three managed portfolios with application, text, and email alerts
  • Transparency. Verifiable trade records for the BNL Portfolio, David’s Dividends, & Eddy’s Options
  • Research. We have coverage on more than 50 companies
  • Results. Our 10 highest rated stocks outperformed the market by 134% last year
  • Live Chat. Join 100s of other members in an exclusive Members Only section with Chat
  • Growth. We are the fastest growing financial research platform in our industry.
  • Build My Portfolio. You give us your goals, we help you get there
  • Premium Content. Unlock hidden sections in each article. You also get Value of the Month selections and BNL Research Reports.
  • Community. We have professionals and beginners; retirees and college students; the 99% & 1%, but here, we are all equal.

Like what you see? Sign up for our newsletter and get the latest stock picks straight to your email!