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OM Group, Inc. (OMG - Snapshot Report) has seen growth in nearly all of its end markets through the first 9 months of the year and it expects demand to remain strong in 2011. It still has an attractive P/E of just 14x forward estimates.

Specialty chemicals have been hot in the global recovery as they are the building blocks for industry and manufacturing. OM Group makes chemicals and advanced materials for industrial processes and has customers around the world in 50 different industries.

If there is one business that can gauge the global recovery, it is OM Group.

Beat For the 4th Quarter in a Row

On Nov 4, OM Group reported its third quarter results and surprised on the Zacks Consensus Estimate by 21.5%. Earnings per share were 79 cents which easily beat the consensus of 65 cents.

Revenue rose 26% to $297.2 million which was helped by the Battery Technologies acquisition, higher selling prices and volume in Advanced Materials and volume growth in Specialty Chemicals.

The Advanced Materials segment saw sales rise 17% to $148.5 million while they rose 4% in Specialty Chemicals to $113.3 million.

Outlook Looks Bright

OM Group only sees good things on the horizon. While the fourth quarter is seasonally a slower quarter, it sees continued growth in 2011 as specialty chemical demand is expected to remain strong.

The analysts raised estimates on after the earnings surprise. The 2010 Zacks Consensus is up 5 cents to $2.73 per share in the last 30 days. This is earnings growth of 157.2%.

So far, earnings are expected to grow just 6% in 2011, but the Zacks Consensus is also moving higher, up 7 cents to $2.90 in the last month.

It's a Value Stock

In addition to an attractive P/E ratio, OM Group also is trading with a price-to-book ratio of just 1.0, under its peers at 1.9.

Its price-to-sales ratio is also just 1.0, which is well within the value stock parameters.

OM Group is a Zacks #2 Rank (buy) stock.

Update to Previous Value Zacks Rank Buy Stocks

Is the semiconductor cycle entering its slowdown phase after huge growth in the last 12 months? Vishay Intertechnology Inc. (VSH) isn't showing any signs of slowing as it recently surprised for the fourth quarter in a row as volumes returned to pre-crisis levels. Read the full article.

Newer-technology aircraft is expected to help boost Bristow Group's (BRS) results throughout the second half of fiscal 2011. The company is coming off a big 45% earnings surprise in the fiscal second quarter. Read the full article.

The department store isn't dead yet. Just ask Dillard's Inc. (DDS) which is looking forward to the holiday season after it just surprised on the Zacks Consensus for the 6th time in the last 7 quarters. Read the full article.

The automotive industry has come roaring back to life. Dorman Products, Inc. (DORM), which provides auto replacement parts, saw revenue jump 22% in the third quarter. The stock has attractive valuations, trading at 14.5x forward estimates. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

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