Specifically, TTM’s high-definition-capable PCBs for smartphones and touchpad tablets are in such high demand that their prices remain high and gross margin remains well above TTM’s segment average. As long as demand for these HDI-PCBs stays strong — and I really don’t see why it wouldn’t — then TTM Technologies, Inc. (NASDAQ:TTMI) can expect its margins and sales to improve. With the company valued at only eight times forward earnings, there’s plenty of room for growth in TTM Technologies, Inc. (NASDAQ:TTMI).
Dress, and invest, for less
I have been waiting forever for a pullback in discount retailer Ross Stores, Inc. (NASDAQ:ROST) , so I’m not going to let a great opportunity like this pass by without getting my CAPScall of outperform firmly in place.
Both Ross Stores and The TJX Companies, Inc. (NYSE:TJX) , the retailer behind TJ Maxx, have excelled since the recession by using the same turnaround plan that Target Corporation (NYSE:TGT) used in the mid-1990s. They’ve both been bringing in well-known, high-demand, designer merchandise at discount prices and targeting the cost-conscious consumer looking for a fresh style at an inexpensive price. Both retailers, however, ran into a brick wall last week when they released their February same-store sales results, which noted a comparable-store gain of 1% for TJX and a decline of 1% for Ross Stores.
Why I think Ross Stores, Inc. (NASDAQ:ROST) will succeed simply has to do with its management team’s understanding of its customers wants and needs, and sticking to its game plan. Higher payroll taxes were expected to take a bite out of Ross’ earnings, as well as a delay for consumers in receiving their tax returns. However, shareholders have more than paid their penance for a chain still primed to outperform. Unless inventories start to climb at either Ross Stores, Inc. (NASDAQ:ROST) or TJX, I could make a case for both as strong buys on any noticeable dip.
Foolish roundup
This week’s common theme is that management has laid a solid long-term foundation for all three companies here to follow. Better diversification for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), more smartphone and touchpad tablet demand for TTM Technologies, Inc. (NASDAQ:TTMI)’s HDI-PCB’s, and Ross Stores, Inc. (NASDAQ:ROST)’ designer brands are the keys that will lead these companies higher over the long run.
The article 3 Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends TTM Technologies and owns shares of Freeport-McMoRan Copper & Gold.
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