Philip van Doorn

Deep Dive Archives | Email alerts

Dec. 14, 2016, 7:59 a.m. EST

Wall Street analysts expect these mid-cap stocks to rise up to 53% in 2017

Medium-sized companies have already greatly outperformed the broader market over the past month

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    S&P 400 Mid Cap Index (MID)
  • X
    S&P Small Cap 600 Index (SML)
  • X
    U.S. 10 Year Treasury Note (TMUBMUSD10Y)

or Cancel Already have a watchlist? Log In

By Philip van Doorn, MarketWatch


Diebold Nixdorf, Inc.
Diebold Nixdorf’s acquisition of Wincor Nixdorf helped push the shares down 21% this year, but analysts expect the stock to jump 53% over the next 12 months.

(This is the second in a three-part series on analysts’ favorite stocks for 2017. The series began with <CROSSREF GUID="{D5E8AC58-BBC5-11E6-A1DD-DE321B99EF6C}" DOCTYPEID="" FILE-NAME="" ENCODING-DATE="">large-cap stocks</CROSSREF> and ended with <CROSSREF GUID="{1BA08048-BD5D-11E6-A769-B25EA543F2E9}" DOCTYPEID="" FILE-NAME="" ENCODING-DATE="">small-caps</CROSSREF>.)

In the first part of this series, we listed large-cap stocks with mostly “buy” ratings expected by analysts to rise at least 30% during 2017. We’re seven years into this bull market, and Wall Street is still bullish.

Today we are featuring stocks included in the S&P 400 Mid-Cap Index /zigman2/quotes/210599897/delayed MID +0.07%  that analysts predict will rise at least 25% over the next 12 months.

As we said in Part 1, this market has so many moving parts, including expectations for major legislation during Donald Trump’s first year or two as president, a replacement or repair for the Affordable Care Act (known as Obamacare), tax reform, an infrastructure spending spree and an easing of bank regulations. It’s notoriously difficult to pass a major bill in Washington, even if your party controls both houses of Congress, but there’s no question that investors have been baking a lot of expected good news into stocks since Nov. 8, when Trump was elected:


FactSet
Most boats have been lifted since Donald Trump’s election, but the mid- and small-cap indices have greatly outperformed the S&P 500 over the past month.

Yes, it’s lovely to see all three indices moving up, but it’s also remarkable how much better S&P 400 Mid-Cap Index and the S&P Small-Cap 600 Index /zigman2/quotes/210599868/delayed SML +0.51%  have performed than the large-cap S&P 500.

Investors expect inflation to rise, as the steadily growing U.S. economy and low unemployment force upward pressure on wages. The decline in bond prices has been remarkable since Nov. 8, with the yield on 10-year U.S. Treasury notes /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% rising to about 2.4% from 1.88%. Rising interest rates means a strengthening dollar, which can lead to plenty of pain for big companies relying on exports, because their prices will increase for foreign customers.

Smaller companies that are publicly traded in the U.S. are far more reliant on domestic sales, and can benefit from upward pressure on prices.

Click to Play

Can Wall Street close this gender gap?

Without further ado, here are the 14 S&P Mid-Cap Index stocks with majority ‘buy’ ratings expected by analysts to rise at least 25% over the next 12 months:

Company Ticker Industry Closing price - Dec. 6 Consensus price target Implied 12-month upside potential
Diebold Nixdorf Inc. /zigman2/quotes/206289339/composite DBD Electronic Equipment/ Instruments $22.95 $35.20 53%
Akorn Inc. /zigman2/quotes/208960448/composite AKRX Medical Distributors $18.94 $28.46 50%
TRI Pointe Group Inc. /zigman2/quotes/204302452/composite TPH Homebuilding $12.15 $16.86 39%
Dycom Industries Inc. /zigman2/quotes/205114296/composite DY Engineering & Construction $73.71 $101.71 38%
Manhattan Associates Inc. /zigman2/quotes/206041868/composite MANH Software $52.73 $70.38 33%
Telephone and Data Systems Inc. /zigman2/quotes/200740609/composite TDS Wireless Telecommunications $28.37 $37.00 30%
Communications Sales & Leasing Inc. Real Estate Investment Trusts $25.32 $32.57 29%
Helen of Troy Ltd. /zigman2/quotes/205565021/composite HELE Electronics/ Appliances $83.00 $106.25 28%
SM Energy Co. /zigman2/quotes/209677692/composite SM Oil and Gas Production $37.23 $47.59 28%
Royal Gold Inc. /zigman2/quotes/203440759/composite RGLD Precious Metals $69.73 $88.92 28%
Steris PLC /zigman2/quotes/203973646/composite STE Medical Specialties $66.21 $83.86 27%
Ciena Corp. /zigman2/quotes/208745450/composite CIEN Telecommunications Equipment $21.00 $26.45 26%
Acxiom Corp. Advertising/ Marketing Services $25.56 $32.00 25%
Hill-Rom Holdings Inc. /zigman2/quotes/200618216/composite HRC Medical Specialties $55.02 $68.75 25%
Source: FactSet

Here are 2016 total returns, along with summaries of analysts’ ratings:

Company Ticker Total return - 2016 through Dec. 6 Share ‘buy’ ratings Share neutral ratings Share ‘sell’ ratings
Diebold Nixdorf Inc. /zigman2/quotes/206289339/composite DBD -21% 71% 29% 0%
Akorn Inc. /zigman2/quotes/208960448/composite AKRX -49% 56% 31% 13%
TRI Pointe Group Inc. /zigman2/quotes/204302452/composite TPH -4% 89% 11% 0%
Dycom Industries Inc. /zigman2/quotes/205114296/composite DY 5% 89% 11% 0%
Manhattan Associates Inc. /zigman2/quotes/206041868/composite MANH -20% 83% 17% 0%
Telephone and Data Systems Inc. /zigman2/quotes/200740609/composite TDS 11% 71% 29% 0%
Communications Sales & Leasing Inc. 45% 86% 14% 0%
Helen of Troy Ltd. /zigman2/quotes/205565021/composite HELE -12% 60% 40% 0%
SM Energy Co. /zigman2/quotes/209677692/composite SM 90% 52% 44% 4%
Royal Gold Inc. /zigman2/quotes/203440759/composite RGLD 94% 80% 20% 0%
Steris PLC /zigman2/quotes/203973646/composite STE -11% 75% 25% 0%
Ciena Corp. /zigman2/quotes/208745450/composite CIEN 1% 74% 26% 0%
Acxiom Corp. 22% 86% 14% 0%
Hill-Rom Holdings Inc. /zigman2/quotes/200618216/composite HRC 16% 71% 29% 0%
Source: FactSet

As you can see from this year’s returns, analysts consider Diebold Nixdorf Inc. /zigman2/quotes/206289339/composite DBD +2.55% and Akorn Inc. /zigman2/quotes/208960448/composite AKRX -7.08%  to be recovery plays. Diebold Nixdorf’s plunge reflected investor angst over the price of $1.8 billion (when announced by the “old” Diebold in November 2015) that the company paid to acquire Wincor Nixdorf in August. The merger has made the combined company the world’s largest maker of automated teller machines.

Here’s how successful these companies have been in increasing their sales per share over the past 12 months:

Company Ticker Sales per share - past 12 months Sales per share - previous 12-month period Growth of sales per share
Diebold Nixdorf Inc. /zigman2/quotes/206289339/composite DBD $39.89 $44.86 -11%
Akorn Inc. /zigman2/quotes/208960448/composite AKRX $8.84 $7.44 19%
TRI Pointe Group Inc. /zigman2/quotes/204302452/composite TPH $15.50 $13.28 17%
Dycom Industries Inc. /zigman2/quotes/205114296/composite DY $86.22 $62.68 38%
Manhattan Associates Inc. /zigman2/quotes/206041868/composite MANH $8.24 $7.33 12%
Telephone and Data Systems Inc. /zigman2/quotes/200740609/composite TDS $46.26 $47.95 -3%
Communications Sales & Leasing Inc. $4.76 N/A N/A
Helen of Troy Ltd. /zigman2/quotes/205565021/composite HELE $54.66 $52.74 4%
SM Energy Co. /zigman2/quotes/209677692/composite SM $16.01 $26.76 -40%
Royal Gold Inc. /zigman2/quotes/203440759/composite RGLD $6.20 $4.35 42%
Steris PLC /zigman2/quotes/203973646/composite STE $30.82 $31.61 -3%
Ciena Corp. /zigman2/quotes/208745450/composite CIEN $17.93 $19.82 -10%
Acxiom Corp. $11.16 $11.84 -6%
Hill-Rom Holdings Inc. /zigman2/quotes/200618216/composite HRC $39.91 $34.21 17%
Source: FactSet

Communications Sales & Leasing Inc. was spun off from Windstream Holdings Inc.  in April 2015, so a 12-month sales comparison is unavailable. But the company’s third-quarter sales per share came to $1.26, rising 9% from a year earlier.

As you can see from the total returns, there’s a lot of volatility among the stocks. If you’re interested in any of them, the next step is to do your own research.

Don’t miss: 10 REITs that look like big winners for 2017

/zigman2/quotes/210599897/delayed
US : S&P US
1,695.33
+1.15 +0.07%
Volume: 490.35M
May 22, 2020 5:09p
loading...
/zigman2/quotes/210599868/delayed
US : S&P US
775.34
+3.93 +0.51%
Volume: 436.41M
May 22, 2020 5:09p
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.66
0.00 0.00%
Volume: 0.00
May 24, 2020 2:05p
loading...
/zigman2/quotes/206289339/composite
US : U.S.: NYSE
$ 5.23
+0.13 +2.55%
Volume: 1.09M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$405.28 million
Rev. per Employee
$198,965
loading...
/zigman2/quotes/208960448/composite
US : U.S.: Nasdaq
$ 0.17
-0.01 -7.08%
Volume: 21.78M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$22.90 million
Rev. per Employee
$312,621
loading...
/zigman2/quotes/204302452/composite
US : U.S.: NYSE
$ 13.66
+0.41 +3.09%
Volume: 897,031
May 22, 2020 4:00p
P/E Ratio
7.98
Dividend Yield
N/A
Market Cap
$1.78 billion
Rev. per Employee
$2.27M
loading...
/zigman2/quotes/205114296/composite
US : U.S.: NYSE
$ 39.62
+0.85 +2.19%
Volume: 506,285
May 22, 2020 4:00p
P/E Ratio
123.66
Dividend Yield
N/A
Market Cap
$1.25 billion
Rev. per Employee
$209,631
loading...
/zigman2/quotes/206041868/composite
US : U.S.: Nasdaq
$ 78.09
+1.30 +1.69%
Volume: 572,615
May 22, 2020 4:00p
P/E Ratio
57.96
Dividend Yield
N/A
Market Cap
$4.96 billion
Rev. per Employee
$186,386
loading...
/zigman2/quotes/200740609/composite
US : U.S.: NYSE
$ 19.64
+0.49 +2.56%
Volume: 408,260
May 22, 2020 4:00p
P/E Ratio
17.79
Dividend Yield
3.46%
Market Cap
$2.25 billion
Rev. per Employee
$1.89M
loading...
/zigman2/quotes/205565021/composite
US : U.S.: Nasdaq
$ 173.05
+3.99 +2.36%
Volume: 74,337
May 22, 2020 4:00p
P/E Ratio
28.76
Dividend Yield
N/A
Market Cap
$4.37 billion
Rev. per Employee
$1.05M
loading...
/zigman2/quotes/209677692/composite
US : U.S.: NYSE
$ 3.82
+0.16 +4.37%
Volume: 4.07M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.52%
Market Cap
$431.62 million
Rev. per Employee
$2.68M
loading...
/zigman2/quotes/203440759/composite
US : U.S.: Nasdaq
$ 136.96
+0.23 +0.17%
Volume: 659,802
May 22, 2020 4:00p
P/E Ratio
50.82
Dividend Yield
0.82%
Market Cap
$8.98 billion
Rev. per Employee
$18.69M
loading...
/zigman2/quotes/203973646/composite
US : U.S.: NYSE
$ 157.48
+1.18 +0.75%
Volume: 443,731
May 22, 2020 4:00p
P/E Ratio
33.08
Dividend Yield
0.94%
Market Cap
$13.36 billion
Rev. per Employee
$227,494
loading...
/zigman2/quotes/208745450/composite
US : U.S.: NYSE
$ 52.81
+1.09 +2.11%
Volume: 1.29M
May 22, 2020 4:00p
P/E Ratio
29.38
Dividend Yield
N/A
Market Cap
$8.11 billion
Rev. per Employee
$536,617
loading...
/zigman2/quotes/200618216/composite
US : U.S.: NYSE
$ 100.05
+0.97 +0.98%
Volume: 321,181
May 22, 2020 4:00p
P/E Ratio
45.79
Dividend Yield
0.88%
Market Cap
$6.66 billion
Rev. per Employee
$286,180
loading...
/zigman2/quotes/206289339/composite
US : U.S.: NYSE
$ 5.23
+0.13 +2.55%
Volume: 1.09M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$405.28 million
Rev. per Employee
$198,965
loading...
/zigman2/quotes/208960448/composite
US : U.S.: Nasdaq
$ 0.17
-0.01 -7.08%
Volume: 21.78M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$22.90 million
Rev. per Employee
$312,621
loading...
/zigman2/quotes/204302452/composite
US : U.S.: NYSE
$ 13.66
+0.41 +3.09%
Volume: 897,031
May 22, 2020 4:00p
P/E Ratio
7.98
Dividend Yield
N/A
Market Cap
$1.78 billion
Rev. per Employee
$2.27M
loading...
/zigman2/quotes/205114296/composite
US : U.S.: NYSE
$ 39.62
+0.85 +2.19%
Volume: 506,285
May 22, 2020 4:00p
P/E Ratio
123.66
Dividend Yield
N/A
Market Cap
$1.25 billion
Rev. per Employee
$209,631
loading...
/zigman2/quotes/206041868/composite
US : U.S.: Nasdaq
$ 78.09
+1.30 +1.69%
Volume: 572,615
May 22, 2020 4:00p
P/E Ratio
57.96
Dividend Yield
N/A
Market Cap
$4.96 billion
Rev. per Employee
$186,386
loading...
/zigman2/quotes/200740609/composite
US : U.S.: NYSE
$ 19.64
+0.49 +2.56%
Volume: 408,260
May 22, 2020 4:00p
P/E Ratio
17.79
Dividend Yield
3.46%
Market Cap
$2.25 billion
Rev. per Employee
$1.89M
loading...
/zigman2/quotes/205565021/composite
US : U.S.: Nasdaq
$ 173.05
+3.99 +2.36%
Volume: 74,337
May 22, 2020 4:00p
P/E Ratio
28.76
Dividend Yield
N/A
Market Cap
$4.37 billion
Rev. per Employee
$1.05M
loading...
/zigman2/quotes/209677692/composite
US : U.S.: NYSE
$ 3.82
+0.16 +4.37%
Volume: 4.07M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.52%
Market Cap
$431.62 million
Rev. per Employee
$2.68M
loading...
/zigman2/quotes/203440759/composite
US : U.S.: Nasdaq
$ 136.96
+0.23 +0.17%
Volume: 659,802
May 22, 2020 4:00p
P/E Ratio
50.82
Dividend Yield
0.82%
Market Cap
$8.98 billion
Rev. per Employee
$18.69M
loading...
/zigman2/quotes/203973646/composite
US : U.S.: NYSE
$ 157.48
+1.18 +0.75%
Volume: 443,731
May 22, 2020 4:00p
P/E Ratio
33.08
Dividend Yield
0.94%
Market Cap
$13.36 billion
Rev. per Employee
$227,494
loading...
/zigman2/quotes/208745450/composite
US : U.S.: NYSE
$ 52.81
+1.09 +2.11%
Volume: 1.29M
May 22, 2020 4:00p
P/E Ratio
29.38
Dividend Yield
N/A
Market Cap
$8.11 billion
Rev. per Employee
$536,617
loading...
/zigman2/quotes/200618216/composite
US : U.S.: NYSE
$ 100.05
+0.97 +0.98%
Volume: 321,181
May 22, 2020 4:00p
P/E Ratio
45.79
Dividend Yield
0.88%
Market Cap
$6.66 billion
Rev. per Employee
$286,180
loading...
/zigman2/quotes/206289339/composite
US : U.S.: NYSE
$ 5.23
+0.13 +2.55%
Volume: 1.09M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$405.28 million
Rev. per Employee
$198,965
loading...
/zigman2/quotes/208960448/composite
US : U.S.: Nasdaq
$ 0.17
-0.01 -7.08%
Volume: 21.78M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$22.90 million
Rev. per Employee
$312,621
loading...
/zigman2/quotes/206289339/composite
US : U.S.: NYSE
$ 5.23
+0.13 +2.55%
Volume: 1.09M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$405.28 million
Rev. per Employee
$198,965
loading...
/zigman2/quotes/208960448/composite
US : U.S.: Nasdaq
$ 0.17
-0.01 -7.08%
Volume: 21.78M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$22.90 million
Rev. per Employee
$312,621
loading...
/zigman2/quotes/204302452/composite
US : U.S.: NYSE
$ 13.66
+0.41 +3.09%
Volume: 897,031
May 22, 2020 4:00p
P/E Ratio
7.98
Dividend Yield
N/A
Market Cap
$1.78 billion
Rev. per Employee
$2.27M
loading...
/zigman2/quotes/205114296/composite
US : U.S.: NYSE
$ 39.62
+0.85 +2.19%
Volume: 506,285
May 22, 2020 4:00p
P/E Ratio
123.66
Dividend Yield
N/A
Market Cap
$1.25 billion
Rev. per Employee
$209,631
loading...
/zigman2/quotes/206041868/composite
US : U.S.: Nasdaq
$ 78.09
+1.30 +1.69%
Volume: 572,615
May 22, 2020 4:00p
P/E Ratio
57.96
Dividend Yield
N/A
Market Cap
$4.96 billion
Rev. per Employee
$186,386
loading...
/zigman2/quotes/200740609/composite
US : U.S.: NYSE
$ 19.64
+0.49 +2.56%
Volume: 408,260
May 22, 2020 4:00p
P/E Ratio
17.79
Dividend Yield
3.46%
Market Cap
$2.25 billion
Rev. per Employee
$1.89M
loading...
/zigman2/quotes/205565021/composite
US : U.S.: Nasdaq
$ 173.05
+3.99 +2.36%
Volume: 74,337
May 22, 2020 4:00p
P/E Ratio
28.76
Dividend Yield
N/A
Market Cap
$4.37 billion
Rev. per Employee
$1.05M
loading...
/zigman2/quotes/209677692/composite
US : U.S.: NYSE
$ 3.82
+0.16 +4.37%
Volume: 4.07M
May 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.52%
Market Cap
$431.62 million
Rev. per Employee
$2.68M
loading...
/zigman2/quotes/203440759/composite
US : U.S.: Nasdaq
$ 136.96
+0.23 +0.17%
Volume: 659,802
May 22, 2020 4:00p
P/E Ratio
50.82
Dividend Yield
0.82%
Market Cap
$8.98 billion
Rev. per Employee
$18.69M
loading...
/zigman2/quotes/203973646/composite
US : U.S.: NYSE
$ 157.48
+1.18 +0.75%
Volume: 443,731
May 22, 2020 4:00p
P/E Ratio
33.08
Dividend Yield
0.94%
Market Cap
$13.36 billion
Rev. per Employee
$227,494
loading...
/zigman2/quotes/208745450/composite
US : U.S.: NYSE
$ 52.81
+1.09 +2.11%
Volume: 1.29M
May 22, 2020 4:00p
P/E Ratio
29.38
Dividend Yield
N/A
Market Cap
$8.11 billion
Rev. per Employee
$536,617
loading...
/zigman2/quotes/200618216/composite
US : U.S.: NYSE
$ 100.05
+0.97 +0.98%
Volume: 321,181
May 22, 2020 4:00p
P/E Ratio
45.79
Dividend Yield
0.88%
Market Cap
$6.66 billion
Rev. per Employee
$286,180
loading...

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.