PGT Innovations Daily Stock Chart w/ MACD and RSI (tradingview.com)

In my ongoing search for stocks with the potential to outperform the broader market, I came upon PGT Innovations (NYSE: PGTI). PGT Innovations produces heavy-duty aluminum and vinyl frame windows for protection from hurricane-force winds and wind-borne debris. The company has a low valuation with strong expected earnings growth, which can drive the stock for significant gains.

The ongoing threat from hurricanes and tropical storms creates the need for PGT Innovations' products. Every year an average of 10 tropical storms develops over the Atlantic Ocean, Caribbean Sea, and the Gulf of Mexico. Six of those storms become hurricanes. About 5 hurricanes hit the U.S. coastline in an average 3-year period.

The company offers various impact-resistant doors and windows with laminated glass that are designed to stand up to heavy wind and flying debris resulting from high winds. PGTI also offers a variety of non-resistance windows and doors.

This Florida-based small cap company is on its way to becoming a mid-cap company. Currently, PGTI has a market cap of $1.57 billion. This is only $430 million away from the official $2 billion market cap which defines mid-cap companies. The company's stock price would just have to hit $34.28 based on 58.35 million shares outstanding to hit the $2 billion market cap milestone. This is only 23% above the current stock price. This could be reached within a year, given PGTI's low valuation and strong expected earnings growth.

Outlook for Future Growth

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