Contents

Overview

Taser (TASR)

Sangamo BioSciences (SGMO)

Commercial Vehicle Group, Inc. (CVGI)

13

TrueBlue, Inc. (TBI)

16

BJs Restaurants (BJRI)

19

What to Do Next

23

5 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 picking framework that has an impressive track record of generating market-beating returns year after year.
Each of the 5 stocks in this report was hand-picked by one of our stock strategists, 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 potential 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 crme
de la crme. 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 diversification 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 the
ones 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

5 Stocks to Double

Taser (TASR)
Ive been a big fan of todays Stock to Double for at least the past year. And
its not just because Ive liked the chart or its been a Zacks Rank #1 (Strong
Buy) several times. This stock has a great story behind it as well. Recently its
found a way to pick up a new revenue stream that its never had before as a
company. Theyve manage to transform themselves from a product manufacturing 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 780,000 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 help

buy 50,000 body cameras through a spending match program with local law
enforcement in order to double the number of cameras in use across the country. Totaling about $75 million, that influx of buying was more than seven times
what TASER made off body-camera sales in 2013. The potential market size is
staggering. There are over 700,000 police officers in the US today.

Competitive Advantage
TASER 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 these
relationships to introduce their body camera products. Its a whole lot easier
to leverage a current relationship with municipalities than it is to try and create
one out of nowhere.

5 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. Its 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 current
devices provide.

New Business Model

The fresh business model is working. Q1 revenue came in at $44.8 million, up
24% 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 22,000 users of EVIDENCE.COM. Thats up
45% quarter-over-quarter during a historically slow season.
About 80% of their AXON body camera purchases are sold with an EVIDENCE.
COM contract. These arent 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 288%.

Revisions
Analysts 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 40 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 2011
where EPS numbers were continually revised down, TASER turned things around.
Steady EPS growth and positive revisions were seen throughout 2012 and 2013.
Things seemed to stall out a bit at the start of 2014 as TASER began to shift its
focus to body cameras and away from their non-lethal weaponry. With the turnaround in the body camera business weve 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 to
a more steady business as the subscription-based model draws more revenue.

5 Stocks to Double

The recent bullish analyst behavior has helped shares rally from $10 in July 2014
to the $31 level shares trade at today. A major rally into the end of last year ran
out of gas at the $28 level. A huge retracement to start March saw shares retreat
to below $22 before buyers gained the courage to jump back in. The surge back
through former resistance at $28 now sets that level as a long-term floor for the
stock price.
After hitting a fresh 52-week high of $34.98 shares sold off again, cooling off an
overbought commodity channel index. The CCI retreated all the way from over
200 to -100, 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 trading just below the 21 day moving average that currently sits at $32.46.

5 Stocks to Double

Bottom Line
TASER 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.

5 Stocks to Double

Sangamo BioSciences (SGMO)

When Im asked for a stock with the potential to double in 12-18 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 $30 and $32 are sitting on nearly 50% 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, Ill show you their stake and the
other whales who have also been adding shares this year. First, lets get to
know our newest idea.
Sangamo BioSciences (SGMO) is a $900 million company based in the Bay Area of
California, the birthplace of Biotech. Founded in 1995, the company went public
in 2000 and traded as high as $50. 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 2 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.
Heres a snapshot of their entire pipeline

5 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 wouldnt bother risking money or their good name on science they didnt
believe in.
The partnership began in January of 2014 when Biogen plunked down $20
million and promised $300 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 defective
one causing the disease.

5 Stocks to Double

Whos Still Buying SGMO?

In the first quarter of 2014, SGMO shares rallied from $13 to $24 on the Biogen
partnership. But since then its been a rocky road for investors whove watched
the stock bounce back and forth between $10 and $20 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 2 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. Heres a list of the top 15
buyers in the first quarter of 2015 whose net accumulation of shares increased
overall institutional ownership by 7% to over 76%

5 Stocks to Double

10

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.
Thats because brother Felix has a PhD in immunology and he sits on the board
of many of the companies they take 5-25% stakes in. And brother Julian is the
business and trading genius, and also on the boards of a few biotech companies. Together, this dynamic brotherly duo more than doubled their fund in just
2 years, going from $4 billion in assets at the end of 2012 to nearly $9.8 billion
in AUM at the end of 2014. Thats 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 lot
of swings knowing that they are not all going to work out.

5 Stocks to Double

11

But the second reason I follow them is because they work so hard to know which
companies are worth their investment dollars. They dont 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 thats it. And since they are so
good 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 longrun.
I like that because I dont 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 Streets 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.
Heres what Wedbush analysts had to say in April
Sangamo BioSciences is a true biotech company, in our viewleveraging their
proprietary state-of-the-art zinc finger technology platform to develop potentially transforming treatments and potential cures for difficult unmet medical 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 $30 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 $10 and $13.
Disclosure: I own SGMO shares for the Zacks Follow The Money Portfolio.

5 Stocks to Double

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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 2014 sales) and construction (24%) markets. Its products include seats (42% of 2014 sales), wire harnesses (21%), trim (19%), structures (11%) and wipers/mirrors (7%).

Seventy percent of 2014 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 2020
In September of last year, the company laid out its long-term strategic plan
known as CVG 2020. The main goal of the plan is to achieve sales and earnings targets commensurate with companies delivering top quartile total shareholder returns. More specifically, this mean a 6-8% compound annual growth
rate in sales from 2014-2020 and a 13-17% CAGR in EBITDA (earnings before
interest, taxes, depreciation, and amortization), according to the company.

5 Stocks to Double

13

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 Results

Commercial Vehicle Group reported strong first quarter results on May 5.
Revenues rose 11% year-over-year to $220.3 million, well ahead of the consensus of $209.0 million. And this was in spite of foreign currency headwinds of $5.0
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 $11.2
million. This was due to a nearly 100 basis point improvement in the gross profit
margin and lower selling, general and administrative expenses as the company
strives for its CVG 2020 plan.
Adjusted earnings per share came in at $0.13, crushing the Zacks Consensus
Estimate of $0.05. It was up from EPS of $0.01 in the first quarter of 2014.

Estimates Rising, Strong Growth Projected

Following strong first quarter results, analysts revised their estimates significantly higher for both 2015 and 2016. This sent the stock to a Zacks Rank of 2
(Buy).
Based on current consensus estimates, analysts project earnings per share to
nearly double this year to $0.57. The 2016 consensus is calling for EPS of $0.73, or
28% annual growth.

Attractive Valuation
The valuation picture looks attractive for shares of Commercial Vehicle Group.
As of June 4, the stock traded at just 10x 12-month forward earnings, well below
the industry median of 14x. Its enterprise value to EBIT (earnings before interest
and taxes) ratio was just 9, also below the industry multiple of 12.

5 Stocks to Double

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If Commercial Vehicle Group can consistently deliver on its CVG 2020 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 also
highly levered with a debt-to-equity ratio over 4. A prolonged economic downturn could create a lot of problems for the firm and its shares.

The Bottom Line

With a multi-year growth plan set in place, solid earnings momentum and very
reasonable valuation, Commercial Vehicle Group offers investors attractive
upside potential.

5 Stocks to Double

15

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 2014, 2.95 million jobs were created, the most since the dot.com mania year
of 1999.
For most of 2015, weekly jobless claims have trended below 300,000, 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 youre a staffing business, these are nearly perfect market conditions for you
to grow.

Blue Collar Labor is in Demand

In April 2015, construction spending rose 2.2% to $1 trillion. This was the highest
level since November 2008.
Non-residential spending was up 3.2% in April and was up 8.8% 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-recreation.
What this means is that companies suddenly need more workers.

Staffing Companies Fill the Void

TrueBlue is a $1.2 billion market cap blue collar staffing company which specializes in providing on-demand temporary and full-time employees in construction, manufacturing, warehousing, retail, events and hospitality.
In construction, it provides staff serving the light-industrial sectors in manufacturing, warehousing and logistics.

5 Stocks to Double

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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 Quarter

On Apr 23, 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 Value

Given the economic conditions, analysts are bullish about TrueBlues growth
potential. It has been steadily growing its earnings both through acquisitions
and organic growth.

5 Stocks to Double

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Earnings are expected to rise by 25% in 2015 and another 16% in 2016, 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 16.2, which is under the average of the S&P 500 of 18.3.
It also has a price-to-book ratio of 2.6. A P/B ratio under 3.0 usually indicates a
company has value.
Additionally, TrueBlues price-to-sales ratio of 0.5 is another strong sign of solid
fundamentals. A P/S ratio under 1.0 usually means a company is undervalued.

Small Caps Still Have Room to Run

Despite the Russell 2000, 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, especially as construction and manufacturing pick up, then TrueBlue is a stock to
keep high on the short list.

5 Stocks to Double

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

About the Company

Founded in 1978 and headquartered in Orange County, CA, BJs 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 occasion and aim to provide premium casual experience at mass market casual
price point.
BJs signature menu items include deep dish pizza and craft beer. They call their
positioning contemporary, high-quality, casual plus. Their restaurants generate industry leading average unit volumes and guest traffic.

5 Stocks to Double

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Excellent Quarterly Results

BJs reported Q1 2015 results on April 23. Revenues of $225.1 million were up 9%
year over year owing mainly to an improvement in comps. Comp sales of 3.2%
represented their best comp sales performance since Q2 2012, driven by a positive traffic gain of 1.5%, which was ahead of the industry by about 200 basis
points.
Adjusted earnings of $0.36 per share beat the Zacks Consensus Estimate of $0.28
per share and were up about 80% from the year-ago figure of $0.20 per share.
A number of steps taken recently such as introduction of a new menu in February
2014, simplifying kitchen processes under project Q and cost control initiatives
appear to be delivering results.

Positive Earnings Estimate Revisions

As 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 $1.40 per share and $1.69 per share respectively, up from $1.31 per
share and $1.64 per share, 60 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 #2 Rank.
The company has beaten Zacks Consensus Estimate in each of last four quarters,
with an average quarterly surprise of 46%.

Strong Growth Story

With a unique position in the hyper-competitive bar and grill segment and a
viable business strategy, BJs 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.

5 Stocks to Double

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Significant Expansion Potential

The company sees an estimated expansion potential of 425+ restaurants in the
longer term as with just 159 restaurants locations as of now, they are significantly less penetrated than peers. The company opened two new restaurants
during the reported quarter and plans to open at least 15 restaurants in 2015.

Project Q Initiative Improving Margins

The companys Project Q initiative is helping it to curtail costs as well a well as
boost the top line. The project has resulted in eliminating unnecessary kitchen
complexity, expanding kitchen capacity for menu enhancements and improving efficiencies.
Further, the company also aims to enhance restaurant return by starting smaller
7,400 square foot prototype restaurants that reduce investment cost by approximately $1 million. With Kitchen of the Future that enhances productivity,
these new restaurants are expected to generate higher margins.

5 Stocks to Double

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Returning Cash to Shareholders

Under the share repurchase program authorized in April 2014, the company has
repurchased approximately 3 million shares for approximately $107 million and
approximately $43 million remains to be used under this authorization. These
buybacks will provide additional support to the stock.

The Bottom Line

With 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 265 Zacks industries (top 20%), indicating
further upside potential for this hot industry.

5 Stocks to Double

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What to Do Next
In addition to the hand-selected picks included in
this special report, you can move yourself way ahead
of the crowd in any market environment with the
following:
As part of this free report, you will now receive our free daily e-newsletter, Profit from the Pros. Each morning, Executive Vice President Steve
Reitmeister will summarize the market, what it means for investors and
what to do next. Plus you get links to articles featuring some of our top
stock, ETF and mutual fund recommendations. Be sure to look for it in your
email inbox before the markets open every day.
Now you should bookmark our homepage to take advantage of one of the
most complete investment websites around. Go there now:
www.zacks.com
Even better, get all Zacks private buys and sells through our Zacks Ultimate
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Learn more about the Zacks Ultimate Trial now

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