5 stocks 2 double

7/21/2019 5 stocks 2 double

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25 Stocks to Double

Contents

Overview 3

Taser (TASR) 4

Sangamo BioSciences (SGMO) 8

Commercial Vehicle Group, Inc. (CVGI) 13

TrueBlue, Inc. (TBI) 16

BJ’s Restaurants (BJRI) 19

What to Do Next 23



35 Stocks to Double

Overview

Thank you for your interest in Zacks and the 5 Stocks to Double report. This

report will give you an idea of the enormous resources available on Zacks.com.

I invite you to visit the site and get familiar with the Zacks Rank, our stock pick -

ing framework that has an impressive track record of generating market-beat-

ing returns year after year.

Each of the 5 stocks in this report was hand-picked by one of our stock strate -

gists, who explain their rationale in the included stock write-ups. Clearly, this

report was not written for the risk-adverse or conservative investor. Rather,

these stocks are for the aggressive investor looking to add home-run poten-

tial to his or her portfolio. It would be prudent to devote no more than a small

portion of your overall portfolio to these stocks.

That said, we hardly threw darts at a board to arrive at these choices. All of the

stocks have catalysts that we think could fuel strong gains over the coming year.

We sifted through stocks that met Zacks Rank criteria and then chose the crème

de la crème. Each of the five stocks has unique qualities that make it a candidate

for this report. And they are all from different sectors, offering a level of diversi-

fication even in this small sample.

Most of the stocks in this report are currently flying under the radar of most

Wall Street analysts and traders, which provides a good opportunity to get in on

the ground floor. The market is littered with these kinds of stocks, but only theones with positive catalysts on the horizon burst onto the scene with monstrous

gains. We made sure that we could identify specific factors that would bring

these stocks out from obscurity and onto the lists of top performing stocks.

We are confident that you can realize enormous gains with these 5 stocks. Leave

the singles and doubles for other portfolios; we are swinging for the fences on

this one!

Best regards,

Sheraz Mian



45 Stocks to Double

Taser (TASR)

I’ve been a big fan of today’s “Stock to Double” for at least the past year. And

it’s not just because I’ve liked the chart or it’s been a Zacks Rank #1 (Strong

Buy) several times. This stock has a great story behind it as well. Recently it’s

found a way to pick up a new revenue stream that it’s never had before as a

company. They’ve manage to transform themselves from a product manufac-

turing company to an online service company as well.

You may know Taser (TASR) for its non-lethal device that police officers use on

unruly college kids. Their electric devices are used by over 7, officials in the

US alone. These products help TASER bring in over $164 million in revenue each

year. But TASER is entering the body camera arena with a new line of products

for officers.

In December, President Obama announced the White House would helpbuy 5, body cameras through a spending match program with local law

enforcement in order to double the number of cameras in use across the coun -

try. Totaling about $75 million, that influx of buying was more than seven times

what TASER made off body-camera sales in 13. The potential market size is

staggering. There are over 7, police officers in the US today.

Competitive AdvantageTASER already has an edge in this space because it has an existing relationship

with precincts all around the US. It should be easy for them to lean on theserelationships to introduce their body camera products. It’s a whole lot easier

to leverage a current relationship with municipalities than it is to try and create

one out of nowhere.



55 Stocks to Double

But the benefits potential revenue stream for TASER is beyond just the sale of

body cameras. TASER is transforming itself and horizontally integrating itself

by adding hosting services for the files the body cameras record. It’s released

Evidence.com in order to provide an easy cloud-based hosting solution where

officers can upload their files for safekeeping. This is a “sticky-money” approach

for TASER and could potentially be a larger revenue stream than their currentdevices provide.

New Business ModelThe fresh business model is working. Q1 revenue came in at $44. million, up

4% YoY. Their video-hosting business showed a revenue increase of 73% YoY.

The company sees interest for body cams accelerating and has 16 major cities

deploying body cams and now counts , users of EVIDENCE.COM. That’s up

45% quarter-over-quarter during a historically slow season.

About % of their AXON body camera purchases are sold with an EVIDENCE.

COM contract. These aren’t month-to-month deals either. 79% of the contracts

are sold on a five year term. Year-over-year growth numbers on the EVIDENCE.

COM segment of the business are currently tracking at %.

RevisionsAnalysts have taken note of the uptick in the video business. Over the last thirty

days alone, five analysts have increased their earnings estimates for the current

year while four have done so for next year. The bullish behavior has pushed up

the Zacks Consensus Estimate for the current year from 4 cents to 49 cents and

for next year the number has jumped from 55 cents to 59 cents.

TASSER has had some great EPS growth in the past. After a rough year in 11

where EPS numbers were continually revised down, TASER turned things around.

Steady EPS growth and positive revisions were seen throughout 1 and 13.

Things seemed to stall out a bit at the start of 14 as TASER began to shift its

focus to body cameras and away from their non-lethal weaponry. With the turn-

around in the body camera business we’ve seen a turnaround in share price. As

you can see from the Price and Consensus chart below, recent revisions have

been to the upside for TASER. Further build out of EVIDENCE.COM will lead toa more steady business as the subscription-based model draws more revenue.



65 Stocks to Double

The recent bullish analyst behavior has helped shares rally from $1 in July 14

to the $31 level shares trade at today. A major rally into the end of last year ranout of gas at the $ level. A huge retracement to start March saw shares retreat

to below $ before buyers gained the courage to jump back in. The surge back

through former resistance at $ now sets that level as a long-term floor for the

stock price.

After hitting a fresh 5-week high of $34.9 shares sold off again, cooling off an

overbought commodity channel index. The CCI retreated all the way from over

to -1, swinging the pendulum all the way to oversold territory. From there,

this rally looks to extend on what could be a CCI “Buy” signal with the stock trad-

ing just below the 1 day moving average that currently sits at $3.46.



75 Stocks to Double

Bottom LineTASER is transforming itself from a one-time purchase product to a reoccurring

revenue stream model with its body cameras and EVIDENCE.COM platform.

They should benefit greatly from the addition of these products to the modern

police form. The potential in the US alone is enough to warrant TASER being my

“Stock to Double.”



85 Stocks to Double

Sangamo BioSciences (SGMO)

When I’m asked for a stock with the potential to double in 1-1 months, I often

go to my favorite sector, Biotechnology. In January, I chose Seattle Genetics

(SGEN) for the “home run” ride and investors who took my advice to buy

between $3 and $3 are sitting on nearly 5% gains in just six months.

So you will not be surprised to hear I am sticking with Biotech. And the name

this time has one of the same catalysts as SGEN: the dynamic Biotech duo from

Baker Brothers Advisors is buying. In moment, I’ll show you their stake and the

other “whales” who have also been adding shares this year. First, let’s get to

know our newest idea.

Sangamo BioSciences (SGMO) is a $9 million company based in the Bay Area of

California, the birthplace of Biotech. Founded in 1995, the company went publicin and traded as high as $5. They are a leader in the development of novel

transcription factors for the regulation of gene expression. Transcription factors

are proteins that turn genes on or off by recognizing specific DNA sequences.

The Universal Gene Recognition technology platform enables the engineering

of a class of transcription factors known as zinc finger DNA binding proteins.

Their lead clinical program is currently in Phase clinical trials testing a zinc

finger nuclease (ZFN)-modified cell therapy for HIV-infected patients to render

and maintain them resistant to HIV infection without chronic drug treatments.

Here’s a snapshot of their entire pipeline…



95 Stocks to Double

Worth noting is that one of their “big brothers” is Biogen (BIIB). In Biotech, small

companies rarely make the progress they do with expensive and long R&D trials

without the help of cash-rich established players. And the best news is that the

big guys’ partnership with the little guys is pure self-interest. In other words,

they wouldn’t bother risking money or their good name on science they didn’t

believe in.

The partnership began in January of 14 when Biogen plunked down $

million and promised $3 million more if certain R&D milestones were met

in two inherited blood disorders, sickle cell disease and beta-thalassemia.

According to a Fierce Biotech story by John Carroll…

The deal brings a major league player to the genome editing game, which has

been gaining new attention with some significant new investments in the field.

In this instance, the technology can be used to address “the abnormal structure

or underproduction of hemoglobin,” either by knocking out a key regulator of

gene expression or inserting a corrective gene to substitute for the defectiveone causing the disease.



105 Stocks to Double

Who’s Still Buying SGMO?In the first quarter of 14, SGMO shares rallied from $13 to $4 on the Biogen

partnership. But since then it’s been a rocky road for investors who’ve watched

the stock bounce back and forth between $1 and $ for the past year.

This sort of volatility, with big swings of optimism and pessimism, is typical of

early-stage Biotech companies with only a few drug candidates in Phase trials.

The wait for success is long and much patience is required.

But many large, and presumably smart, investors have taken the opportunity to

buy more SGMO shares every time it dips under $15. Here’s a list of the top 15

buyers in the first quarter of 15 whose net accumulation of shares increased

overall institutional ownership by 7% to over 76%…




Some good names on this list, including Millennium Management, Goldman

Sachs, Columbus Circle, and Janus. But my favorite name to follow in Biotech is

Baker Brothers. These guys manage money for the Tisch family, owners of the

NY Giants. And they put all their marbles in one basket: Biotech.

That’s because brother Felix has a PhD in immunology and he sits on the boardof many of the companies they take 5-5% stakes in. And brother Julian is the

business and trading genius, and also on the boards of a few biotech compa -

nies. Together, this dynamic brotherly duo more than doubled their fund in just

years, going from $4 billion in assets at the end of 1 to nearly $9. billion

in AUM at the end of 14. That’s focus and concentration bringing home the

bacon for one of the best hedge fund returns in this bull market.

I follow the Baker Brothers for two primary reasons: first, they are obviously

enormously successful and good at what they do. There is one obvious caveat

here, though. Since they buy many dozens of Biotech companies, they take a lotof swings knowing that they are not all going to work out.




But the second reason I follow them is because they work so hard to know which

companies are worth their investment dollars. They don’t have mandates like

most other fund managers that tell them what sectors to be in, what market

caps to buy, or when to be concerned about interest rates.

They get to focus on good Biotech companies and that’s it. And since they are sogood at researching and advising these companies, nobody can tell them what

to buy or sell, or when. They are free to focus on excellent investing for the long-

run.

I like that because I don’t have time to go and get a biochemistry degree and

begin to understand all the complicated science involved. I need to be able to

trust the research being done on my behalf by the Bakers and other whales.

What Say the Analysts?For the last word on Biotechs, I often turn to the investment bank analysts to

check on their homework. Many of Wall Street’s Biotech analysts are trained

in the life sciences and they seriously compete with their peers to understand

emerging companies, their pipelines, and their chances with the FDA.

Here’s what Wedbush analysts had to say in April…

Sangamo BioSciences is a true biotech company, in our view—leveraging their

proprietary state-of-the-art zinc finger technology platform to develop poten-

tially transforming treatments and potential cures for difficult unmet medi-

cal needs. At the end of Q1:15, the company had about $226.1 million in cash.

With this cash and potential partnership income to offset burn, we project cash

runway for the foreseeable future and cash to cover additional HIV program

catalysts as well as initiating clinical development in their multiple monogenic

disease and potentially cancer immunotherapy programs.

And in June the analysts reiterated their Outperform rating and $3 price target.

That sounds like they believe SGMO has a good shot to double in the next year

or so. I recommend buying shares between $1 and $13.

Disclosure: I own SGMO shares for the Zacks Follow The Money Portfolio.




Commercial Vehicle Group, Inc.(CVGI)

Commercial Vehicle Group, Inc. supplies a full range of cab related products and

systems for the global commercial vehicle market, primarily for the medium-and

heavy-duty truck (55% of 14 sales) and construction (4%) markets. Its prod-

ucts include seats (4% of 14 sales), wire harnesses (1%), trim (19%), struc-

tures (11%) and wipers/mirrors (7%).

Seventy percent of 14 sales came from six customers: AB Volvo, PACCAR,

Daimler Truck, Caterpillar, Navistar and Deere. Seventy-five percent of sales

came from North America. It is headquartered in New Albany, Ohio.

CVG 2020In September of last year, the company laid out its long-term strategic plan

known as “CVG ”. The main goal of the plan is “to achieve sales and earn-

ings targets commensurate with companies delivering top quartile total share-holder returns” . More specifically, this mean a 6-% compound annual growth

rate in sales from 14- and a 13-17% CAGR in EBITDA (earnings before

interest, taxes, depreciation, and amortization), according to the company.




Management believes CVG has significant organic growth opportunities

as it currently has just 5% market share in its addressable global markets.

Geographically, the company expects to grow in the Asia-Pacific region. The

company also wants to diverse its end markets more towards the agriculture

market, and to a lesser extent the construction market.

Strong First Quarter ResultsCommercial Vehicle Group reported strong first quarter results on May 5.

Revenues rose 11% year-over-year to $.3 million, well ahead of the consen-

sus of $9. million. And this was in spite of foreign currency headwinds of $5.

million and bad weather. The sales increase was driven by robust production in

the North American medium and heavy duty truck market.

Operating income more than doubled from the same quarter last year to $11.

million. This was due to a nearly 1 basis point improvement in the gross profitmargin and lower selling, general and administrative expenses as the company

strives for its CVG plan.

Adjusted earnings per share came in at $.13, crushing the Zacks Consensus

Estimate of $.5. It was up from EPS of $.1 in the first quarter of 14.

Estimates Rising, Strong Growth ProjectedFollowing strong first quarter results, analysts revised their estimates signifi-

cantly higher for both 15 and 16. This sent the stock to a Zacks Rank of

(Buy).

Based on current consensus estimates, analysts project earnings per share to

nearly double this year to $.57. The 16 consensus is calling for EPS of $.73, or

% annual growth.

Attractive ValuationThe valuation picture looks attractive for shares of Commercial Vehicle Group.

As of June 4, the stock traded at just 1x 1-month forward earnings, well below

the industry median of 14x. Its enterprise value to EBIT (earnings before interestand taxes) ratio was just 9, also below the industry multiple of 1.




If Commercial Vehicle Group can consistently deliver on its CVG plans, I

would expect these valuation multiples to expand significantly over the coming

quarters.

Note, however, that CVG operates in a highly economic-sensitive industry, and

its shares are highly volatile. This is not a stock for the faint of heart. CVG is alsohighly levered with a debt-to-equity ratio over 4. A prolonged economic down-

turn could create a lot of problems for the firm and its shares.

The Bottom LineWith a multi-year growth plan set in place, solid earnings momentum and very

reasonable valuation, Commercial Vehicle Group offers investors attractive

upside potential.




TrueBlue, Inc. (TBI)

While it has been a recovery of fits and starts for the US economy since the Great

Recession, the job market has finally turned a corner.

In 14, .95 million jobs were created, the most since the dot.com mania year

of 1999.

For most of 15, weekly jobless claims have trended below 3,, which is

the smallest number of people receiving unemployment insurance in 14 years.

Employers are starting to have difficulty actually filling positions, which is putting

pressure on wages because employers have to pay more to find workers.

If you’re a staffing business, these are nearly perfect market conditions for youto grow.

Blue Collar Labor is in DemandIn April 15, construction spending rose .% to $1 trillion. This was the highest

level since November .

Non-residential spending was up 3.% in April and was up .% year over year. In

a bullish sign, the prior months of February and March were also revised higher.

Many sectors showed double digit gains year over year including commercial

construction, office buildings, lodging, sewage-waste and amusement-recre-

ation.

What this means is that companies suddenly need more workers.

Staffing Companies Fill the VoidTrueBlue is a $1. billion market cap blue collar staffing company which special-

izes in providing on-demand temporary and full-time employees in construc-

tion, manufacturing, warehousing, retail, events and hospitality.

In construction, it provides staff serving the light-industrial sectors in manufac-

turing, warehousing and logistics.




It also provides fully-outsourced staffing in the energy sector, hospitality,

drivers for transportation, aviation mechanics and can manage larger staffing

projects.

8th Earnings Beat in a Row in the First Quar-

terOn Apr 3, TrueBlue reported record first quarter results and beat the Zacks

Consensus Estimate by eight cents, or 67%. It has put together quite an earnings

surprise track record, having beaten eight quarters in a row.

Revenue rose 45% to $573 million, some of which was the result of acquisitions.

But it had a strong performance in Outsourcing Solutions and saw improvement

in some construction markets including California and Florida.

Not surprisingly, it faced some headwinds in Texas due to the weakness of the

energy industry.

Growth and ValueGiven the economic conditions, analysts are bullish about TrueBlue’s growth

potential. It has been steadily growing its earnings both through acquisitions

and organic growth.




Earnings are expected to rise by 5% in 15 and another 16% in 16, to a new

5-year high.

Yet shares of this small cap staffing company are still attractively valued. It has a

forward P/E of just 16., which is under the average of the S&P 5 of 1.3.

It also has a price-to-book ratio of .6. A P/B ratio under 3. usually indicates a

company has value.

Additionally, TrueBlue’s price-to-sales ratio of .5 is another strong sign of solid

fundamentals. A P/S ratio under 1. usually means a company is undervalued.

Small Caps Still Have Room to RunDespite the Russell , the index of small cap companies, hitting new highs

during this bull rally, the small caps still have the most potential. Small cap

companies have the fastest growth rates.

TrueBlue represents a hidden value in an industry, blue collar staffing, that is just

starting to heat up.

For investors looking for a way to play the recovery in the US jobs market, espe -

cially as construction and manufacturing pick up, then TrueBlue is a stock to

keep high on the short list.




BJ’s Restaurants (BJRI)

Thanks to savings from lower gas prices, consumers have started spending more

on dining out. Rising discretionary spending bodes well for the restaurant indus-

try and makes this Zacks rank #1 (Strong Buy) restaurant stock quite appetizing.

About the CompanyFounded in 197 and headquartered in Orange County, CA, BJ’s Restaurants

(BJRI) owns and operates a chain of 159 high-end casual dining restaurants in 19

states. Their restaurants feature a broad, diversified menu for any dining occa-

sion and aim to provide “premium casual” experience at “mass market casual”

price point.

BJ’s signature menu items include deep dish pizza and craft beer. They call theirpositioning “contemporary, high-quality, casual plus”. Their restaurants gener-

ate industry leading average unit volumes and guest traffic.




Excellent Quarterly ResultsBJ’s reported Q1 15 results on April 3. Revenues of $5.1 million were up 9%

year over year owing mainly to an improvement in comps. Comp sales of 3.%

represented their best comp sales performance since Q 1, driven by a posi-

tive traffic gain of 1.5%, which was ahead of the industry by about basispoints.

Adjusted earnings of $.36 per share beat the Zacks Consensus Estimate of $.

per share and were up about % from the year-ago figure of $. per share.

A number of steps taken recently such as introduction of a new menu in February

14, simplifying kitchen processes under project Q and cost control initiatives

appear to be delivering results.

Positive Earnings Estimate RevisionsAs a result of strong quarterly report, analysts have raised their estimates for

the company. Zacks Consensus Estimates for the current and the next fiscal year

now stand at $1.4 per share and $1.69 per share respectively, up from $1.31 per

share and $1.64 per share, 6 days ago.

Rising estimates sent the stock back to a Zacks Rank#1 (Strong Buy) last month.

In fact since the beginning of this year, BJRI has maintained Zacks #1 or # Rank.

The company has beaten Zacks Consensus Estimate in each of last four quarters,

with an average quarterly surprise of 46%.

Strong Growth StoryWith a unique position in the hyper-competitive bar and grill segment and a

viable business strategy, BJ’s Restaurants is one of the strongest growth stories

in this space. With improving consumer spending, several menu initiatives to

drive comp sales and operational infinitives to cut costs, the company remains

well positioned to maintain its growth momentum.




Significant Expansion PotentialThe company sees an estimated expansion potential of 45+ restaurants in the

longer term as with just 159 restaurants locations as of now, they are signifi -

cantly less penetrated than peers. The company opened two new restaurantsduring the reported quarter and plans to open at least 15 restaurants in 15.

Project Q Initiative Improving Margins

The company’s Project Q initiative is helping it to curtail costs as well a well asboost the top line. The project has resulted in eliminating unnecessary kitchen

complexity, expanding kitchen capacity for menu enhancements and improv-

ing efficiencies.

Further, the company also aims to enhance restaurant return by starting smaller

7,4 square foot prototype restaurants that reduce investment cost by approx-

imately $1 million. With “Kitchen of the Future” that enhances productivity,

these new restaurants are expected to generate higher margins.




Returning Cash to ShareholdersUnder the share repurchase program authorized in April 14, the company has

repurchased approximately 3 million shares for approximately $17 million andapproximately $43 million remains to be used under this authorization. These

buybacks will provide additional support to the stock.

The Bottom LineWith a healing labor market and declining oil prices, consumers are now much

more willing to spend on high-quality casual dining. Thanks to favorable industry

trends, a diversified business model and several steps taken recently to improve

its processes, the company is moving in the right direction. The Restaurant

industry is currently ranked 53 out of 65 Zacks industries (top %), indicating

further upside potential for this hot industry.



What to Do NextIn addition to the hand-selected picks included inthis special report, you can move yourself way aheadof the crowd in any market environment with thefollowing:• As part of this free report, you will now receive our free daily e-newslet-

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5 stocks 2 double