Vishay Precision Group
said business keeps getting better when it beat earnings expectations last quarter.
Estimates are moving higher, pushing the stock to a Zacks #1 Rank (Strong Buy) and it has held up pretty well in the recent downturn.
Vishay Precision Group makes sensors using resistive foil technology. Their solutions are used for stress, force, weight, pressure and current measurements.
The last quarterly report came out on May 3 and showed a 24% improvement on the top line, to $50.5 million. Vishay said that business is strengthening and that trend should continue. Management described the environment as "significantly better" than last year.
Net income for the period was $3.3 million, or $0.24 per share. That was 11 cents higher than both the same period last year and the Zacks Consensus Estimate.
After the company said it expects revenues to be between $58 million and $63 million, analysts raised their estimates. The full-year Zacks Consensus Estimate for this year is up 18 cents, to $0.91. Last year Vishay made $0.85, so the expectations went from an earnings contraction to a 7% growth rate.
Next year's projections are averaging $1.29, up 7 cents which puts the expected growth rate north of 40%.
Share of VPG are trading at attractive levels right now. The forward P/E is about 19 times, which is not too bad, but the P/S of 1.0 and the P/B at 1.3 are showing a solid value.
Joining the Russell
On Jun 24 the stock will be added to the Russell 2000 and the Russell Microcap Index. That should give VPG some more attention as some fund managers and investors tracking the indexes will be buying up shares.
Shares spiked on the earnings news, but have not done much since then. Although, given the recent selling, this is a pretty solid performance.
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