Despite lingering macroeconomic concerns, the stock market is recovering, with the S&P 500 records its best eight-week period earlier this month in more than a year and retracing nearly 50% of its loss in the bear market. A slight drop in inflation in July, a buoyant job market and better than expected corporate earnings fueled market momentum.
S&P 500 company earnings should have risen, says Refinitiv 9.7% YoY in the second quartermuch stronger than the 5.6% expected.
Additionally, consumer sentiment has improved, with the University of Michigan’s August preliminary reading on the Global Consumer Sentiment Index coming at 55.1, significantly higher than 51.5 the previous month. “All components of the Expectations Index have improved this month, particularly among low- and middle-income consumers for whom inflation is particularly important,” said survey director Joanne Hsu.
Given the backdrop, we think investors might consider investing in fundamentally sound stock Good Times Restaurants Inc. (GTIM), Hill International, Inc. (HIL), TransGlobe Energy Corporation (TGA) and Overseas Shipholding Group, Inc. (OSG), which are currently trading below $5.
Good Times Restaurants Inc. (GTIM)
GTIM conducts restaurant business in the United States. The Company operates and franchises Good Times Burgers & Frozen Custard; and Burger Bar Bad Daddy.
The company completed the acquisition of a Bad Daddy’s restaurant in Greenville, South Carolina earlier this year. “This acquisition expands our presence in the Greenville market to two company-owned restaurants,” said Ryan Zink, President and CEO.
GTIM total net income increased 7.5% year over year to $36.50 million in the fiscal quarter ended June 28, 2022.
Shares of GTIM have gained 11.2% over the past month to close the latest trading session at $3.01.
Its solid fundamentals are reflected in its POWR Rankings. The stock has an overall rating of A, which translates to Strong Buy in our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
GTIM also has an A rating in value and a B rating in growth, momentum, sentiment and quality. It is ranked No. 1 out of 47 A-rated stocks Restaurants industry.
Beyond what’s stated above, we also rated GTIM for stability. Get All GTIM Ratings here.
Hill International, Inc. (HIL)
HIL provides project and construction management and other consultancy services primarily for the building, transport, environment, energy and industrial markets.
On August 17, HIL and Global Infrastructure Solutions Inc. (GISI) announced a definitive agreement to merge the diversified construction management companies, paving the way for increased competitiveness and accelerated global organic growth in fee-based infrastructure consulting markets. . This should be strategically beneficial for HIL.
For the fiscal quarter ended June 30, 2022, HIL’s total revenue was $105.73 million, up 4.1% year-over-year. Its gross profit was $37.43 million, up 19.6% year-on-year, while its EPS was $0.02, up 300% year-on-year on the other. Additionally, its operating profit was $4.48 million during the same period.
HIL has gained 89.8% over the past three months to close the last trading session at $2.79. The stock has gained 43.1% since the start of the year.
It’s no surprise that HIL has an overall A rating, which equals Strong Buy in our proprietary rating system.
The stock has a B rating for quality and growth. HIL is ranked No. 4 out of 89 B-rated stocks Industrial – Services industry.
Click here to see additional POWR ratings for HIL (stability, sentiment, value and momentum).
TransGlobe Energy Company (TGA)
Based in Calgary, Canada, TGA engages in the acquisition, exploration, development and production of crude oil and natural gas in Egypt and Canada.
TGA’s revenue increased 47.5% from the prior year quarter to $74.69 million during the fiscal quarter ended June 30, 2022. Net profit for the quarter was $32.13 million, reflecting a 316.1% year-over-year increase, while net income earnings per share were $0.44, up 300% from one year to the next.
The consensus EPS estimate of $1.23 for the year ending December 2022 represents a 348.8% year-over-year improvement. The consensus revenue estimate of $339.50 million for the same year represents a 100.9% year-over-year increase. It has an impressive history of earnings surprises, as it has exceeded Street EPS estimates in three of the past four quarters.
Shares of TGA have gained 112.3% over the past year to close the last trading session at $3.29.
TGA’s POWR ratings reflect its promising outlook. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.
The stock has an A rating in Value and Momentum and a B in Quality. Of the 42 A-rated shares Foreign oil and gas industry, TGA is ranked #10.
Click here to get the TGA Sentiment, Stability and Growth Ratings.
Overseas Shipholding Group, Inc. (OSG)
OSG owns and operates a fleet of ocean-going vessels engaged in the transportation of crude oil and petroleum products in United States flag trade.
On June 13, OSG announced a buyback program of up to 5 million common shares of the company with its excess cash. The Company may purchase the Shares from time to time in open market or over-the-counter transactions. This should improve returns for shareholders.
For the fiscal quarter ended June 30, 2022, OSG’s shipping revenue increased 33.5% year-over-year to $117.99 million. Its operating profit rose 318.6% from the previous year’s value to $12.64 million. Net profit for the quarter was $3.74 million, reflecting a 135% year-over-year increase.
The stock has gained 50.3% over the past six months to close the last trading session at $2.71. It has gained 43.1% since the start of the year.
The stock has an overall rating of A, which translates to Strong Buy in our proprietary rating system. OSG also has an A rating in Momentum and a B in Sentiment and Quality. It is ranked No. 2 out of 44 A-rated stocks Dispatch industry.
Click here for additional POWR ratings for Growth, Value and Stability for OSG.
GTIM stock was trading at $3.35 per share Thursday morning, up $0.34 (+11.30%). Year-to-date, the GTIM is down -22.81%, compared to a -9.53% rise in the benchmark S&P 500 over the same period.
About the Author: Komal Bhattar
Komal’s passion for the stock market and financial analysis led her to pursue her career in investment research. Its fundamental approach to stock analysis helps investors identify the best investment opportunities. After…