Top Picks 2020: Chart Industries (GTLS)

01/22/2020 5:00 am EST

Focus: ENERGY

Crista Huff

Editor, Cabot Undervalued Stocks Advisor

Chart Industries (GTLS) — my Top growth stock for the coming year — is a leading independent global manufacturer of highly engineered equipment serving multiple market applications in energy and industrial gas,  asserts Crista Huff, editor of Cabot Undervalued Stocks Advisor.

The company is actively growing its global presence and revenue with operations in the U.S., Europe, Asia, Australia and Latin America.

In listening to the webcast of the company’s November 2019 Investor Presentation, it becomes clear that Chart Industries is focused on business expansion and efficiency, people and safety, cutting wasteful costs and making acquisitions that enhance current operations.

The firm's webcast delivered one of the most impressive corporate presentations I’ve ever heard. Chart has no direct peers, offering turnkey solutions with a much more broad set of product offerings than other industry participants.

Revenue has been growing aggressively since 2017. Consensus estimates point to 2020 revenue and EPS growing 23% and 75.5%, respectively, while the 2020 P/E is very low at 13.2. Clearly, the investment community has not caught on to Chart’s expertise and success.

GTLS is a small-cap stock with significant institutional ownership. The share price declined in 2019, and is now rebounding, with over 40% upside as GTLS aims to retrace its 2019 high of $95.

(Editor's note: Last year, Crista Huff had two big winners. Apollo Global Management (APO) was up 103% and Crista suggests that investors exit their positions. Sleep Number (SNBR), rose 53% and Huff says, "While the numbers at SNBR no longer support an aggressive growth outlook, this volatile stock should continue to offer a capital gain opportunity in 2020.)

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