Matsumoto Financial Group would like interested parties to pay attention to a few of the stock picks for 2018 that currently have a fairly low value. Our method puts an emphasis on earnings estimate revisions to find investments that our analysts predict will be winners.



Groupon, Inc. - GRPN


In the transition to a marketplace-first focus, Groupon is attempting to solidify a strong future for its company right now. Our current consensus estimates are calling for earnings growth to eclipse 200% by the end of fiscal 2017, and that expansion is forecast to continue with EPS growth of 50% in the next fiscal year. The business is on the cusp of consistent profitability, and its revenue numbers are already impressive. In fact, with a P/S ratio of 1.10, Groupon’s sales are clearly strong for a fledgling tech company.



LSI Industries Inc. - LYTS


LSI Industries is an image solutions company that provides graphics display and lighting fixtures  units for the retail & commercial markets. The business is starting to see the fruits of a strong building industry, and after a strong earnings report, that momentum should continue into 2018, where the company is already seeing rising earnings estimates. Furthermore, LSI offers a respectable 3% dividend and sports an overall VGM grade of “A” in our Style Scores system—both of which underscore its financial and fundamental stability.



Glu Mobile Inc. - GLUU


Glu Mobile is a world leader publishing mobile games, including top-rated original titles and titles based on major brands from partners like Activision and Hasbro. The company is expected to end off its fiscal year with annual EPS growth of 86%, and in 2018, Glu is expected to surge into the green with EPS growth of an additional 218%. Shares are on pace to gain more than 115% in 2017, but that increase should continue next year as investors reward the business for its profitability. This stock is also a firm pick for investors looking to make a play on the growing mobile gaming sector.



Tesco PLC - TSCDY


Tesco is the UK’s largest retailer and a global leader in the grocery and general merchandise retail markets. For a company its size, Tesco is showing impressive expansion, including projected earnings growth of 44% this fiscal year. The company is also expected to better its profits at annualized rate of 11% over the next three to five years. Additionally, the stock is sporting an “A” grade in our Value and Growth categories, which implies that its fundamental forecast is sound and shares could be undervalued right now.



LimeLight Networks, Inc. - LLNW


LimeLight provides content delivery network solutions and partners with over 1,300 brands to deliver live and on-demand video around the world. Our current consensus estimates are pointing for the company to finish the fiscal year with earnings growth of 633%, and that expansion is expected to flow into the next fiscal year, with current projections calling for additional EPS growth of 41%. LimeLight is also expected to witness respectable sales growth of 7% in its fiscal 2018. Also, the company has surpassed earnings estimates in four consecutive quarters and will look to continue that momentum into 2018.



https://matsumotofinancialgroup.com



John Snow – Manager