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| Company Name | Symbol | %Change |
|---|---|---|
| SCIENTIFIC L | SCIL | 8.00% |
| NATUS MEDICA | BABY | 6.11% |
| SUMMER INFAN | SUMR | 6.02% |
| RADIANT LOGI | RLGT | 5.32% |
| NEW ORIENTAL | EDU | 4.51% |
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Company Description
TPC Group makes a variety of chemicals for performance, specialty and intermediate markets. Products include synthetic rubber, fuels, lubricant additives, plastics and surfactants.
Revenue Doubles
On Sep 17 TPC Group reported fiscal 2010 fourth-quarter results that included a 104% jump in revenue from the same period last year, to $532 million. Sequentially the top line grew 33%.
Net income more than tripled since last year, to $14.4 million from $4.1 million and up from $7.8 million in the fiscal third quarter. Earnings per share came in at 80 cents, beating the Zacks Consensus Estimate by a quarter.
Estimates Jump
After the earnings release the covering analyst that reports to Zacks upped their full-year estimates substantially. The fiscal 2011 estimate is now $2.25, up from $1.77. Next year's forecast is $2.91, up from $2.17. If TPC Group meets these expectations the annual growth rates will be 108% and 29%.
And a Good Value
Shares of TPCG are trading at just 12 times the forward estimate, thanks to the upward revision. The PEG ratio of 0.4 shows a deep discount on those growth rates.
The price to sales ratio is just 0.29, which is well ahead of its peers that average 0.94.
The Chart
Stocks that shoot up this much, this fast can be tough for investors to buy, fearing they missed the party. But, keep those excellent valuations and growth rates in mind. There is still plenty of upside for this Zacks #1 Rank (Strong Buy)
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