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As we progress through the holiday season, investors are hoping stocks start gathering momentum leading up to Christmas and New Year’s Day. The hopes of a Santa Clause rally will be more anticipated this year as broader markets still hover near bear market territory.
Here are two stocks that could be poised to climb higher by year-end and are worthy of consideration entering 2023.
Bowman Consulting Group BWMN
One stock investors should be watching going into FY23 is Bowman Consulting Group (BWMN). The company went public in 2021 and provides planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, and land procurement among other technical services to customers operating in a diverse set of regulated end markets.
Earnings estimate revisions are rising for BWMN and the stock also has an overall “A” VGM grade. Year over year, BWMN earnings are expected to climb a stellar 1,566% to $0.50 per share from $0.03 a share in 2021. FY23 earnings are anticipated to jump another 54% to $0.77 per share.
As the company moves further into profitability, top line growth is also expanding. Sales are projected to be up 70% this year and rise another 21% in FY23 to $308.68 million.
Year to date, BWMN is only down -9% to outperform the S&P 500’s -17%. This has largely outperformed the Business Services Market’s -42% YTD performance. BWMN is up +37% since its 2021 IPO to beat the benchmark and crush its Zacks Subindustry’s -23% performance during this period.
Image Source: Zacks Investment Research
Trading around $19 per share BWMN has a forward P/E of 38.5X. This is above the industry average of 17.3X but the rising earnings estimates support the industry premium paid for BWMN stock at the moment. Plus, BWMN trades well below its historic high of 233.3X and beneath the median of 42.5X. And the Average Zacks Price Target suggests 55% upside from current levels.
DecisionPoint Systems DPSI
Another name investors might want to consider going into the new year is DecisionPoint Systems. The enterprise mobility and radio frequency technology company is seeing earnings estimates rise. DPSI also has an overall “A” VGM grade in addition to its Computer-Software industry being in the top 36% of all Zacks industries.
DecisionsPoint sells and installs mobile devices, software, and related bar-coding equipment. Earnings are expected to leap 500% this year to $0.36 per share. FY23 earnings are forecasted to rise another 20%.
Top line growth is expected as well, with sales set to jump 37% this year and another 6% in FY23 to $96.17 million.