Entegris, Inc (ENTG - Snapshot Report) shares jumped on a recent earnings surprise. But, thanks to rising estimates and shares retracing, ENTG is also a great value. Now could be a great time to get into this Zacks #1 Rank (Strong Buy).
Entegris, Inc. offers a range of products used in making semiconductors and other applications such as purifying, protecting and transporting materials. Locations are in the U.S, Asia and Europe.
On Apr 21 Entegris reported first-quarter sales of $203 million, which is a record for the company. The top line greW 27% since last year and was 12% higher than the previous quarter.
Net income came in at $29.2 million, a 76% jump from last year and broke down to $0.23 per share. The Zacks Consensus Estimate was $0.20 heading into the number, giving Entegris its third consecutive surprise.
Estimates Gain Ground
Over the past week, 4 analysts raised their full-year estimates. The average estimate for this year rose 6 cents, to $0.91. That would give Entegris a 28% growth rate. Next year's consensus jumped 8 cents and is also at $0.91. While that give them a flat projection for 2012, the upward estimates should continue and paint a nice growth picture for the long run.
Entegris has a long-term growth rate of 12%, and given the current estimates the growth is coming at a discount. The forward P/E is just over 9 times, which puts the PEG ratio at 0.8 times.
Shares of ENTG jumped ahead of, and even more after, the earnings report, but have been retracing the past few sessions. This could be a good chance to get in at a good value.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service