CRRX is benefiting from aging demographic tailwinds, it has a highly recurring revenue model, with margin expansion taking place, and it has inflected positive. Momentum is solid, it has a small yield of 2.0%, forward earnings growth is expected to be strong, and it generates a healthy amount of free cash flows. It trades at a decent valuation of 18X forward earnings. The name is quite small, it has high volatility, and it trades thinly, but overall, things look increasingly positive here.
PNG is continuing its strong run on increased national defense spending, and its strong forward sales and earnings estimates. We continue to like the name as it is shifting towards higher margin service-based revenues, and it is growing a nice moat in a combination of proprietary sensing tech (high-res seabed data), batteries and sensors, and a growing list of Navy partnerships. The valuation is high, but the tailwinds are intact right now, and that is likely why investors are rewarding the name.