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Aggressive Growth

Zygo Corp (ZIGO) has worked its way back into profitability and estimates are showing fantastic growth.

Company Description

Zygo Corp makes precision measurement solutions, medical lasers and other electro-optical devices for semiconductor, medical, scientific and industrial applications.

Back in the Black

On Aug 19 Zygo reported fiscal fourth quarter results that showed a 20% increase in revenues over the same period last year, to $28.5 million. Net earnings came in at $4.1 million. In the final period last year the company reported a net loss, even after stripping out massive one-time charges. This was the first quarterly profit in almost 2 years.

Earnings per shares were 23 cents, easily beating expectations of just 10 cents. Zygo has only missed expectations twice in the past 5 years.

Big Turnaround

Currently there is only 1 analysts covering Zygo, but that can be a benefit for us. With fewer eyes on the company, they have a better chance to post big surprises and subsequently big price movements.

That analyst raised the full-year fiscal 2011 estimate 18 cents, to 50 cents after the earnings report. Next year's forecast rose 8 cents, to 68 cents. Last year the company lost 9 cents, making a good turnaround story.

The Chart

Shares of ZIGO have a very nice upward trend going, starting from the earnings release. The stock continues to mark higher highs and as ZIGO hits the trend line here I am looking for yet another new high, making a great entry point.

Zygo Corp - ticker ZYGO >
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Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

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