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Aggressive Growth

TriMas Corp. (TRS - Snapshot Report) continues its impressive run of earnings surprises and analysts continue to increase estimates after the company released bullish guidance.

This Zacks #1 Rank (Strong Buy) is also trading with great valuations, even as it pressures the 52-week high.

Company Description

TriMas makes engineered and applied products for a variety of industries. The company is broken down into 5 segments; Packaging, Energy, Aerospace & Defense, Engineered Components and Cequent (recreational products).

Another Surprise

Since being featured as a Zacks Rank Buy in July, TriMas has reported 2 more earnings surprises, bringing the streak to 6. The latest quarterly report came on Oct 28.

Earnings per share came in at 37 cents, beating the estimates by 7 cents. Sales were up 22% to nearly $248 million during the quarter, credited to economic improvements as well as growth initiatives.

Optimistic Outlook

Given the strong quarterly performance, management raised its full-year outlook. TriMas expects to more than double EPS, from $0.43 to between $1.05 and $1.10.

Analysts agree and have pushed the Zacks Consensus Estimate to the high end of that range. Forecasts are calling for $1.10 on average, up 6 cents on the earnings news. Next year's estimates are up 8 cents, to $1.34.

If TriMas hits these projections the annual growth rates will be 156% and 22%, respectively.

A Good Value as Well

Shares of TRS are trading at 12 times the 2011 consensus estimate and with a PEG ratio of only 0.8. TriMas has the best price-to-sales ratio in its peer group, at 0.61 times.

Speaking of peers, the company stacks up very well next to its competitors. The company has an ROE of over 47%, compared to the 7.2% the industry averages.

The Chart

There was some profit taking on the earnings news, but shares quickly bounced back. If they can push past the 52-week high, the bullish trend should continue.

Read the July 13th Feature Here

TriMas - ticker TRS >
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Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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