Back to top

Aggressive Growth

Stoneridge Inc. (SRI - Snapshot Report) estimates are at a 5-year high after a convincing rebound out of the recession.

Company Description

Stoneridge makes engineered electrical components for the automotive, agriculture and off-highway vehicle industries. The company is headquartered in Ohio and has a market cap of roughly $250 million.

Huge Growth Rates

The Zacks Consensus Estimate for 2010 is currently 49 cents, up considerably from the $1.25 loss in 2009. Next year's forecasts are averaging $1.30, a 165% growth rate.

Valuations are tough to get a read on when a company is coming out of a negative year, because the longer-term growth rate can't be fairly calculated. The value in SRI is not in the 20 times forward P/E, but rather the price-to-sales ratio of 0.46, which is better than the average of its peers, which is 0.98.

Beat the Street

Estimates are up due to the most recent earnings surprise, which was on Jul 28. Stoneridge reported a 63% jump in net sales since last year, to $166 million. The bulk of that increase was attributed to higher volumes rather than price increases.

Net income came in at $4.2 million, which breaks down to an EPS of 17 cents. A year ago Stoneridge lost almost $20 million, or 84 cents per share.

Bullish Outlook

Stoneridge is currently projecting annual sales between $605 million and $625 million. Using the median of the estimate, this is calling for a 29% jump in annual sales, from $475 million in 2009.

The Chart

Below is a chart with a series of different colored lines, which represent a particular year's Zacks Consensus Estimate. You can see that the full-year projections have bounce back sharply from the recession-induced lows and are actually at a 5-year high.

Stoneridge Inc. - ticker SRI >

Bill Wilton is the Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Growth Trader service

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%