The price-to-earnings ratio has its supporters and detractors, but this simple statistic can be an easy way for investors to gauge how cheap an average stock is on the fly. For some stocks, however, the P/E ratio is a misleading statistic -- particularly when earnings betray a poor business model. With stocks' rise this year and earnings on the upswing, however, is the P/E ratio a suitable fit in the medical device industry, particularly as many device stocks have soared in 2013?
Using data compiled by stock screening site Finviz.com, here are three of the cheapest medical device stocks in the industry as sorted by the P/E ratio. Are these picks worth your investment -- or is this simple statistic hiding lagging financials and flailing companies? Motley Fool contributor Dan Carroll tells you what you need to know about the device industry's cheapest pickings below.
While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.
Top 5 Healthcare Equipment Stocks To Own Right Now: Mechanical Technology Inc (MKTY)
Mechanical Technology, Incorporated (MTI), incorporated on October 4, 1961, operates in two segments: the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly-owned subsidiary, and the New Energy segment, which is conducted through MTI MicroFuel Cells, Inc. (MTI Micro), a variable interest entity (VIE) as of December 31, 2011. MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, portable balance equipment and wafer inspection tools. MTI Micro is developing Mobion, a handheld energy-generating device. Mobion handheld generators are based on direct methanol fuel cell (DMFC) technology. As of December 31, 2011, the Company owned approximately 47.6% of MTI Micro's interest.
The Test and Measurement Instrumentation Segment
MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, portable balance equipment and wafer inspection tools. MTI Instrument's products use a range of technologies to solve applications in numerous industries including manufacturing, semiconductor, solar, commercial and military aviation, automotive and data storage. The Company's test and measurement segment has three product groups: Precision Instruments, Semiconductor and Solar Metrology Systems, and Aviation Balancing Systems. The Company's products consist of electronic, computerized gauging instruments for position, displacement and vibration applications for the design, manufacturing/production and test and research markets; metrology tools for wafer characterization of semiconductor and solar wafers; tensile stage systems for materials testing in research and industrial settings; and engine balancing and vibration analysis systems for both military and commercial aircraft.
The Precision Instruments group employs capacitance, laser and fiber optic technologies to make nano-accurate measurements. These advanced sensing and physical measur! ement technologies are used to produce products that range from basic sensors to complete, fully integrated measurement systems, and are available as single sensors for integration into existing data acquisition systems or as complete system level solutions that can be further integrated into a facility wide communication backbone. MTI Instruments' Precision Instruments product offerings & technologies include Accumeasure Family, Microtrak Family, Microtrak II Series, Microtrak Pro-2D, MTI-2100 Fotonic Sensor Series, MTI Tensile Stages, Semiconductor and Solar Metrology Systems, Aviation Balancing Systems, PBS-4100+ /4100R+ Portable Balancing System, TSC-4800A Tachometer Signal Conditioner, and 1510A Calibrator.
The Accumeasure family of products is designed to address the needs of product developers, process engineers, researchers, designers, and others who need measurements. MTI Instrument's Microtrak family of laser triangulation sensors offers displacement, position and vibration measurements. The Microtrak II comes with an interface controller that provides a digital display of the target position, alarm set points and connections for analog and RS-485 outputs. The Microtrak II Stand-Alone Laser Head also uses complementary metal oxide semiconductors with charged coupled device (CMOS - CCD) detection technology. During the year ended December 31, 2011, MTII launched its Microtrak PRO-2D laser triangulation scanners, which provides profile, displacement and dimensional information in real time.
The MTI-2100 features fiber-optic and electronic technologies for precise measurements of displacement, position and vibration. MTI Instruments' miniature tensile, compression and bend testing machines are designed for use in scanning electron microscopes, atomic force microscopes, and light microscopes. The Company's family of wafer metrology systems includes manual and semi-automated systems. The Semiconductor and Solar Metrology Systems include Proforma 200SA/300SA, Proforma 300 a! nd PV-100! 0. The Proforma 300 is a manual tool. The PV-1000 is incorporated into solar cell production lines to help manufacturers determine quality control issues. The computer-based portable balancing systems (PBS) products collect and record aircraft engine vibration data, identify vibration or balance trouble in an engine, and calculate a solution to the problem.
The portable PBS-4100+ detects if an engine has a vibration problem or a trim balance problem and provides a solution, resulting in reduced engine vibration, longer engine life, and lower fuel costs. The PBS-4100R+ rack mounted system offers the same features and functions as the portable PBS-4100+ with added data channels, speed input channels, direct current (DC) outputs and diagnostic options. TSC-4800A Tachometer Signal Conditioner is targeted for operators of Engine Test cells, where accurate and reliable conditioning of speed signals is essential. The TSC-4800A features multiple output circuits that provide more than 10 different signals types for the monitoring devices. The PBS family of products includes a 1510A calibrator - a product that automatically performs a calibration check of the PBS unit which otherwise would take hours.
The New Energy Segment
MTI Micro has been developing an off-the-grid power solution for various portable electronic devices to address this power gap. The Company's DMFC technology platform, called Mobion, converts methanol fuel to usable electricity. The Company's fuel cell power solution consists of two components integrated into a manufactured device: the direct methanol fuel cell power engine, which the Company refers to as its Mobion Chip, and methanol fuel cartridges. MTI Micro is focusing the development of an external power charger product as a standalone device that uses a universal serial bus (USB) interface as a power output connector that can be used to recharge handheld mobile devices. A fuel cell is an electrochemical energy conversion device, which is similar t! o a batte! ry that produces electricity from a liquid or gaseous fuel, such as methanol, and an oxidant, such as oxygen.
The Company competes with KLA-Tencor, Sigma Tech Corporation, E+H Eichhorn+Hausmann GmbH, Chadwick-Helmuth Company, Inc., ACES Systems, Micro-Epsilon, and Keyence Corporation.
Advisors' Opinion:- [By John Udovich]
Meanwhile, Plug Power Inc was formed in 1997 as a joint venture of Michigan utility owner DTE Energy Co (NYSE: DTE) and Mechanical Technology Inc (OTCMKTS: MKTY) to develop fuel-cell systems to power homes and small businesses. Plug Power Inc says it has�revolutionized the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints as�it manufactures a full suite of products designed to fit seamlessly into the existing battery compartment of all major OEM material handling equipment. The company also says that�its GenDrive fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion�global material handling market.
- [By John Udovich]
Small cap Plug Power Inc was formed in 1997 as a joint venture between Michigan utility owner DTE Energy Co (NYSE: DTE) and Mechanical Technology Inc (OTCMKTS: MKTY) to develop fuel-cell systems to power homes and small businesses. Plug Power Inc says it has�revolutionized the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints as�it manufactures a full suite of products designed to fit seamlessly into the existing battery compartment of all major OEM material handling equipment. In addition, the company says its GenDrive fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion�global material handling market.
Top 5 Cheapest Stocks To Invest In Right Now: Digi International Inc.(DGII)
Digi International Inc. engages in the provision of machine to machine networking products and solutions to connect, monitor, and control of local or remote physical assets by electronic means. It offers a range of embedded products, including modules, single board computers, chips, satellite communication devices, and software and development tools; and non embedded products comprising cellular products, serial servers, console servers, universal serial bus connected products, serial cards, and wireless communication adaptors. The company also provides wireless product design and development services to provide wireless networking products. In addition, it offers iDigi, a cloud-based Internet platform to connect enterprise applications to remote electronic devices. The company sells its products through a network of distributors, systems integrators, and value added resellers for a range of businesses and institutions, as well as to original equipment manufacturers primar ily in North America, Europe, the Middle East, Africa, Asia, and Latin America. It has strategic alliances with VMware, Ember, Freescale, Qualcomm, Ericsson, Itron, AT&T, Sprint, Verizon, Bell Mobility, and Rogers. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.
Advisors' Opinion:- [By John Udovich]
Small cap machine-to-machine (M2M) stock Elecsys Corp (NASDAQ: ESYS) jumped 8.99% yesterday and is up 254% over the past year, meaning it might be time to take a closer look at the stock and its performance verses other small cap M2M stocks like Digi International Inc (NASDAQ: DGII), Numerex Corp (NASDAQ: NMRX) and Sierra Wireless, Inc (NASDAQ: SWIR). First of all though, I should mention that machine-to-machine (M2M) broadly refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type and this can be through any type of technology ranging from instruments to networks to applications that create connections between devices.
- [By John Kell]
Digi International Inc.'s(DGII) fiscal first quarter earnings fell, as high costs masked a slight rise in revenue. The wireless-product provider’s results were well-below the company’s previous guidance. Shares slumped 9.9% to $10.89 premarket.
- [By John Udovich]
Small cap Machine-to-Machine (M2M) stock CalAmp Corp (NASDAQ: CAMP) has given investors a relatively flat performance since spiking earlier this year but shares are still up some�538.5% over the past five years (according to Google Finance) ��meaning its worth taking a closer look at the stock along with the performance of other M2M stocks like Digi International Inc (NASDAQ: DGII), Numerex Corp (NASDAQ: NMRX) and Sierra Wireless, Inc (NASDAQ: SWIR). I should mention that we recently added CalAmp Corp to our SmallCap Network Elite Opportunity (SCN EO) portfolio based around�our�ongoing�Internet of Things growth theme plus the company appears well positioned�in the M2M space for the next few years.
Top 5 Cheapest Stocks To Invest In Right Now: SK Telecom Corporation Ltd.(SKM)
SK Telecom Co., Ltd. provides wireless telecommunications services using code division multiple access (CDMA) and wide-band CDMA technologies. It offers cellular voice services, such as wireless voice transmission services; and wireless global roaming services. The company also provides wireless data transmission services, such as wireless Internet access services, which allow subscribers to access online digital contents and services, as well as to send and receive text and multimedia messages. In addition, it offers broadband Internet and fixed-line telephone services, such as video-on-demand and IP TV services; and local, domestic, and international long-distance fixed-line telephone services to residential and commercial subscribers. Further, the company provides wireless entertainment-related contents and services, wireless finance-related contents and m-commerce services, and wireless news and search services; and international calling services, such as direct-dial, pre and post paid card calling services, bundled services for corporate customers, voice services using Internet protocol, Web-to-phone services, and data services. Additionally, it offers satellite digital media broadcasting services; telematics services; and fixed-line and online community portal services. The company also operates 11th Street, an online shopping mall; and T Store, an online open marketplace for mobile applications. As of March 31, 2011, SK Telecom Co. had 26 million wireless subscribers. It has strategic alliances with Bridge Alliance; Orange SA; Telecom Italia Mobile S.p.A.; T-Mobile International AG & Co; and Teliasonera Mobile Networks AB. The company was formerly known as Korea Mobile Telecommunications Co., Ltd. and changed its name to SK Telecom Co., Ltd. in March 1997. SK Telecom Co., Ltd. was founded in 1984 and is based in Seoul, South Korea.
Advisors' Opinion:- [By Garrett Cook]
Telecommunications services shares gained around 0.25 percent in today’s trading. Top gainers in the sector included NQ Mobile (NYSE: NQ), Nippon Telegraph and Telephone (NYSE: NTT), and SK Telecom Co (NYSE: SKM).
Top 5 Cheapest Stocks To Invest In Right Now: Allegheny Technologies Incorporated (ATI)
Allegheny Technologies Incorporated engages in the production and sale of specialty metals worldwide. It operates in three segments: High Performance Metals, Flat-Rolled Products, and Engineered Products. The High Performance Metals segment provides various high performance alloys, including nickel- and cobalt-based alloys and super alloys; titanium and titanium-based alloys; zirconium and related alloys, such as hafnium and niobium; other specialty alloys primarily in long product forms of ingots, billets, bars, shapes and rectangles, rods, wires, and seamless tubes; and precision forgings and castings, and machined parts. The Flat-Rolled Products segment provides stainless steel, nickel-based alloys, super alloys, titanium and titanium-based alloys, and specialty alloys in various product forms comprising plates, sheets, engineered strips, and precision rolled strip products, as well as grain-oriented electrical steel sheets. The Engineered Products segment produces carb on alloy steel impression die forgings, and grey and ductile iron castings, as well as provides precision metal processing services, such as grinding, polishing, blasting, cutting, flattening, and ultrasonic testing. The company serves various markets, including aerospace and defense, oil and gas, chemical process, electrical energy, medical, automotive, construction and mining, food equipment and appliances, transportation, electronics, communication equipment, computers, and machine and cutting tools markets; and other markets requiring tools with hardness. Allegheny Technologies Incorporated sells its products through direct sales and independent representatives. The company was founded in 1960 and is based in Pittsburgh, Pennsylvania.
Advisors' Opinion:- [By Bruce Kennedy]
On Monday, U.S. Attorney General Eric Holder announced indictments against five officers in China's People's Liberation Army (PLA) for ��erious cybersecurity breaches��against six American firms: Westinghouse Electric, a division of Toshiba (OTC: TOSBF) , Alcoa (NYSE: AA),�Allegheny Technologies (NYSE: ATI), U.S. Steel (NYSE: X), the United Steelworkers Union and SolarWorld (OTC: SRWRY).
- [By Charley Blaine]
The market overall gained support from energy and utility stocks. About 288 S&P 500 stocks were higher, led by First Solar (NYSE: FSLR) and steel-maker Allegheny Technologies Inc. (NYSE: ATI), up 22% and 18.6%, respectively.
- [By Ben Levisohn]
Allegheny Technologies Incorporated�(ATI) has gained 9.7% to $31.41 after it said it would sell its tungsten business to Kennametal (KMT). Kennametal has risen 2% to $46.92.
- [By Ben Levisohn]
In our late October report on X, we noted the Company was “scratching the surface” on operational improvement, and we expected shares to edge higher over the near term. While X shares have appreciated by 16% since that report vs. the S&P 500 of +4% and the [Market Vectors Steel ETF (SLX)] of +3%, we believe shares have more room to run based on our positive carbon hot-rolled steel pricing revisions for 2014: meaningful raw material cost tailwinds (coal, scrap, iron ore); low Street EPS and EBITDA expectations for 2014-2015; an ever-increasing interest rate environment (benefits for pension exposure); more evidence of European macro stability; and above-average likelihood of incremental operational efficiency announcements such as a joint venture or tolling agreement with Allegheny Technologies Incorporated (ATI).