Universal Stainless & Alloy
by Bill WiltonJuly 22, 2011 | Comments : 0 Recommended this article: (0)
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.
Estimates have been moving higher and the stock is now a Zacks #2 Rank (Buy), poised to hit new highs.
Universal makes semi-finished and finished steels. The company's products are used in heavy equipment manufacturing, petrochemical, and other industries.
Back on Jun 15 shares of USAP looked like they were in a tailspin. But, the company came out with upgraded guidance that changed the market's tune in a heartbeat.
Universal said it expected quarterly EPS to land between $0.75 and $0.85, at the time the Zacks Consensus Estimates was $0.73. So, needless to say, analysts quickly raised their estimates.
Full-year estimates have been volatile, but right now they average $2.53, which is a 31% growth rate. Next year's estimates surged to $3.94, for a 56% growth rate.
Rising estimates, especially from the company, can get investors pretty excited ahead of an earnings report. We should see if Universal will deliver next week.
The company has an great history of beating estimates, beating in each of the past 6 quarters. Other than missing once and meeting twice, they have topped forecasts in each quarter for the past 5 years.
Mid June was a busy time for Universal. Just ahead of the revised guidance the company announced the acquisition of Patriot Special Metals. The deal will broaden Universal's production capabilities into higher margin areas.
Financing for the $105 million deal includes cash, bank loans and a $20 million convertible note issued to the seller.
I mentioned that shares were in a downward spiral earlier, but look how sharply the 2 news stories changed the direction of USAP. The stock's surge brought it to a 4-year high and is within a few percent of the all-time highs.
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
This Week's Aggressive Growth Zacks Rank Buy Stocks
Mitcham Industries, Inc. (MIND) is coming off of a record-setting quarter that has estimates darting higher. They did issue more shares, but that has actually moved estimates even higher.
Valuations look as pretty solid, especially considering earnings are expecting to grow by more than 4 fold over the next 2 years.
Photronics (PLAB) had record-setting results in its last quarterly report. Earnings are expected to more than double this year and estimates are still rising.
This Zacks #1 Rank (Strong Buy) is also showing some value and could be trading at an excellent entry point.
Medidata Solutions (MDSO) analysts moved their forecasts higher after the last quarterly report, pushing shares to a Zacks #1 Rank (Strong Buy).
The company is also active in the M&A market and trades with solid valuations.
Virtusa (VRTU) is showing consistently strong growth rates for the near future. And that growth is coming at a very reasonable price.
With revenues on the rise and a new acquisition, analysts are raising estimates just ahead of the next earnings report, a great signal.
Read the full reports :
Please login to Zacks.com or register to post a comment.