Bull of the Day: Air Methods (AIRM)

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April 12, 2013 |

Air Methods ( AIRM - Snapshot Report ) is a high-speed enterprise in the business of saving lives. Deploying a fleet of hundreds of helicopters and airplanes in 48 states, Air Methods is the number one provider of medical emergency air transport services.

AIRM became a Zacks #1 Rank (Strong Buy) stock last month after analysts raised the current quarter EPS estimate by 10%, the full year 2013 by 8.4%, and 2014 by a whopping 20%.

This kind of earnings momentum is not new for Air Methods either. For the last five years, the company has grown revenues by 13% annually and profits by a stunning 38%.

Here's the Zacks proprietary Price & Consensus chart which shows how the stock has been tracking Wall Street growth projections.

Though the EPS growth is forecast to slow down somewhat, mid-teens top and bottom line appreciation is still attracting institutional growth investors.

Who Would You Hire?

Right now, Air Methods owns this industry. With two divisions that concentrate on their area of expertise, they appear poised to dominate vs all other competition.

The Air Medical Service Division offers their clients helicopters and airplanes equipped with medical interiors for flights from the scene of an accident or general hospital to a trauma center. The Products Division designs, manufactures, and installs aircraft medical interiors and other aerospace products in aircraft from Bell Helicopter, a Textron company ( TXT - Analyst Report ) .

For hospitals and trauma centers from Alaska to Key West, Air Methods' 300 bases of operation offer timely, quality emergency transport. For major medical facilities who must have these services, the choice is clear.

Just the Good Kinds of Surprises

What kind of surprises do we want from the public companies we invest in? Earnings surprises, of course. Here's a look AIRM's consistent history of beating the Street.

Another good surprise is new business opportunities and revenues. On March 4, AIRM announced that its United Rotorcraft Division has been awarded a contract in excess of $44 million from Sikorsky Aircraft Corporation, a United Technologies company ( UTX - Analyst Report ) , for MEDEVAC Interior Systems installed on new HH-60M BLACK HAWK helicopters.

And being dependable as a key element of the life-saving business reduces one area of surprises that medical professionals have to deal with. Since 1980, Air Methods has built its reputation on a commitment to quality patient care and safety in aviation operations.

AIRM is on flight path of dominance that should continue to grow in an industry vital to modern society. Keep them on your radar as we have here at Zacks for years.

Kevin Cook is a Senior Stock Strategist with Zacks.com

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