This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Hill-Rom Holdings, Inc. (HRC - Snapshot Report) just hit a new all-time high above $41 after reporting strong Q4 results that included a 22% earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock is lying in a warm bed of momentum.
We got an update on Hill-Rom's business in late October when the company reported strong Q4 results that easily beat expectations.
Revenue for the period was up 9% from last year to $397 million. Earnings also came in strong at 67 cents, 22% ahead of the Zacks Consensus Estimate, where the company now has an average earnings surprise of 24% over the last four quarters.
Hill-Rom's largest segment, North American Acute Care, saw sales increase 10% from last year to $231 million. The company's International and Surgical division was also strong, up 14% from last year to $118 million.
Hill-Rom also scored big in a few key categories, with its operating margin expanding to 16.4% from 10.7% last year and operating cash flow increasing to $79 million.
Strong Balance Sheet
The company emerged from the quarter with its strong balance sheet in tact, with cash and equivalents of $184.5 million against total debt of $152 million, down $50 million from last year.
We saw some pretty solid movement in estimates on the good quarter, with the current year adding 21 cents to $2.13 and the next-year estimate gaining 21 cents to $2.39, a bullish 12% growth projection.
But in spite of the gains, the valuation picture still looks reasonable at 18X forward earnings, in line with the industry average of 19X.
HRC recently hit a new all-time high after jumping on the good quarter. But in spite of the gains, the stochastic below the chart is signaling that shares are trading well away from over-bought territory. Look for support from the long-term trend on any weakness, take a look below.
Read the Aug 18 HRC article here
Last Week's Momentum Zacks Rank Buy Stocks
Ctrip.com International, Ltd. (CTRP) recently hit a new multi-year high above $53 after the company reported an awesome Q3 earnings surprise of 29% in early November. With a bullish next-year estimate and high industry rank, this Zacks #1 rank stock provides international flavor to the momentum faction. Read Full Article.
Whole Foods Market, Inc. (WFMI) recently jumped to a new multi-year high after reporting strong Q4 results that included an 18% earnings surprise. With an average earnings surprise of 18% over the last four quarters and bullish 13% next-year growth projection, this Zacks #1 rank stock offers a healthy serving of momentum. Read Full Article.
Sotheby's (BID) recently hit a new multi-year high at $47.23 after reporting a solid 31% Q3 earnings surprise in early November. Estimates have since jumped higher, with the next-year estimate projecting 17% growth, providing plenty of momentum for this Zacks #1 rank stock. Read Full Article.
Steve Madden Ltd. (SHOO) recently hit a new all-time high at $44.85 before reporting solid Q3 results that included a 5% earnings surprise. With an average earnings surprise of 14% over the last four quarters and a bullish growth projection, SHOO is kicking up the momentum meter a notch or two. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.