Back to top

Aggressive Growth

Libbey Inc. (LBY) is trading near its 52-week high, yet still shows solid valuations and the growth outlook is fantastic.

Company Description

Libbey makes glass, metal, ceramic and plastic tableware in the U.S. in addition to Mexico, China, Portugal and the Netherlands. The customers range from retail to foodservice and industrial uses.

Estimates Still Surging

The Zacks Consensus Estimate for 2010 is up 33 cents, to $1.12 since its original Zacks Rank Buy feature back on Jun 24. Next year's estimates are up 32 cents on average, to $1.50. Given the $1.47 loss in 2009, LBY looks like quite a turn around story.

A Big Surprise

Much of that spike is due to the quarterly results Libbey released on Jul 29. The company reported EPS of 56 cents, more than double the 27 cents that was expected, giving the company back-to-back surprises and 4 in the past 5 quarters.

Second-quarter net sales rose 3.7% to $203 million, driven by a 29% jump in Mexico. Libbey's net income came in at $9.6 million, up sharply from $2.7 million one year ago.


Shares of LBY can be tough to value, which is typical of small cap companies. While the forward P/E of 13 and the PEG of roughly 1.2 are solid, the real value is in the price to sales. Libbey's P/S is coming in at 0.31, which is well ahead of its peers that average about 0.6.

Earnings can be extremely volatile for small cap stocks, so many analysts use a sales valuation as an alternative. The sales picture is usually much more stable, however it does not take into account other key factors like expenses.

The Chart

Shares of LBY are pressuring its 52-week high right now and have a very good chance of pushing through that level, given the strong momentum.

Read the June 24thFeature Here

Libbey Inc.- ticker LBY >

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

Last Week's Aggressive Growth Zacks Rank Buy Stocks

American Superconductor (AMSC) analysts continue to raise estimates, even as the company nears its next quarterly report. The growth rates and long-term outlook are fantastic for this Zacks #1 Rank (Strong Buy). Read Full Article.

CarMax, Inc. (KMX) recently posted its seventh consecutive earnings surprise, sending shares to multi-year highs. Read Full Article.

RC2 Corp (RCRC) analysts keep raising their estimate outlook and the company continues to top those expectations. Read Full Article.

Thor Industries, Inc. (THO) shares surged to pressure the 52-week high after the recent earnings release. The company is atop its industry and is still trading with good valuations. Read Full Article.

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
UTD THERAPE… 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%