This wireless communications company beat earnings estimates by two cents last quarter, and three analysts have increased their forecasts in the past 30 days.
CalAmp Corp. (CAMP)
From Technology and Opportunity
CalAmp Corp. (CAMP) provides wireless communications solutions for various applications worldwide. It offers solutions for mobile resource management, machine-to-machine (M2M) communications, and other emerging markets that require connectivity. Its M2M and MRM solutions enable customers in energy, government, transportation, and automotive markets to optimize their operations by collecting, monitoring, and reporting business-critical data from remote and mobile assets.
CalAmp remains one of my favorite stocks. It’s slowly becoming a powerhouse in its respective field, yet it trades at a sub-billion-dollar market cap and remains relatively unknown to most investors.
As the company continues to mature, though, CalAmp has been gaining an increasing amount of institutional attention. Since 2013, the stock has seen four coverage initiations, all overwhelmingly positive. This month, CalAmp received another positive outlook from Canaccord Genuity, with a Buy rating and price target of $29.
This positive institutional sentiment follows CalAmp’s recent acquisition of LoJack Corp.(LOJN). LoJack shareholders were the immediate winners in this deal, but CalAmpshareholders should expect to be rewarded over the long run.
CalAmp will leverage LoJack’s offerings to position itself strongly in connected car and vehicle telematics applications. With virtually all major automotive companies now promising to embrace driverless and connected vehicles within the next five years or less, we can only expect CalAmp to benefit. CalAmp is a Strong Buy under $20.50. The risk level is Medium.
Jason Stutman, Technology and Opportunity, www.angelpub.com, 877-303-4529, February 2016