Update On Previous Picks – Staples, Casey’s and Republic Airways

Looking back on previous picks for this year so far, we have a bit of a mixed bag. These picks were Staples ($SPLS), Casey’s General Stores ($CASY) and Republic Airways Holdings ($RJET).

Lets start off with Staples, which was my pick back in January. This stock has been a disappointment since I made the pick when they were 13.83. I felt that the market was going to buy into the fact they were the 2nd largest e-commerce site in the world behind Amazon now. I thought this would also be reflected in the earnings, but at the time it was not. After Office Depot reported, they dropped down in the $11 range. When time for their own earnings was coming up, the price started to rise up back to $13. Unfortunately when they reported earnings they dropped back in the $11 range again.

I still feel they are a long-term play and will rise again, but you may have to hold on for a while to see it finally come to fruition. Analysts that are covering the stock also believe that it has a good shot at getting really good gains and with the dividend, it makes it attractive as well. So I see this as a buying opportunity to load up on more cheap shares. Several have a price target around $15, so that would be close to a 40% gain from the current price.

Then we have Casey’s General Stores. When I suggested them at 67.13, they stayed in a range right around that price not varying by more than a dollar or two. That was until they released their earnings report on the 9th of June and that’s when they rose to 75.12 on the 10th. That was good enough to get an almost 11% gain from when I suggested it.

They had good sales growth in all sectors of their business that beat their expectations of where they wanted to be. They have strong goals for the next year, and if they can meet it they continue to have quite a bit more upside. Several analysts are looking for a price to eventually be in the $80+ range.

Finally, we have Republic Airways Holdings. They have been on a bit of a roller coaster ride. When I suggested them on February 27th, they were at $9.58. Then after that they eventually dropped down to a low of $7.97 on April 14th. Hopefully you used that as an opportunity to buy some more shares cheap as they eventually went as high as $11.18 on June 9th.

They’ve seen their air traffic increase by 15% in May and recently an analyst raised their price target to $17 from their previous $13 target. So things are looking up if you continue to hold on to the shares.

From the period of my suggestion, to their most recent high on the 9th, they have gained almost 17%. Not too shabby.

I will update soon with some more stocks to take a look at. Happy investing!

Staples ($SPLS) – Stock Pick for 1-23-14

Lately, Staples has gone on a bit of a slide this month. As of yesterday’s close, it was sitting at $13.83. I see this as a great buying opportunity here though.

Recently the company has relaunched their brand and made changes to how they do business online that has made them the #2 online retail spot just behind Amazon. During the past year they have increased their inventory from 75,000 products to over 400,000 products. With a larger range of options, more customers are coming to them to help supply their needs.

Their P/E ratio is much better than the specialty retail industry coming in at 18.80, compared with the industry at 47.98. They have a low P/S ratio as well at .37 compared to the industry at 2.37. That suggests a good bit of value to be had.

In the past year the stock has been as high as $17.30. I think they will start heading back that direction again as they continue to see strength from their online business. They also pay out a dividend that currently yields 3.5% which gives a little extra incentive on top of things here. If they re-test the previous year’s high, I see at least a 20% upside. So that’s why they are my latest stock pick.

*Disclosure: I purchased shares of Staples today in my IRA portfolio.