Back to top

Aggressive Growth

Northwest Pipe Co (NWPX - Snapshot Report) just reported a great quarter, with surging revenues and an excellent EPS beat.

Shares are showing great valuations and will only get better as analysts start to raise full-year forecasts. Is now a good time to get into this Zacks #1 Rank (Strong Buy)?

Company Description

Northwest Pipe makes welded steel pipe and other similar products. The company operates in 2 segments; Water Transmission and Tubular Products that are used in the energy, construction, ag and industrial markets.

Crushed Expectations

On Aug 5 Northwest Pipe reported quarterly results that showed an impressive 50% increase in sales, to $144 million. Increases were due to a balance of pricing and volume.

Net income turned the corner, from a $1.4 million loss to a $5.8 million profit. Earnings worked out to $0.57 per share, 33 cents higher than the Zacks Consensus Estimate. This was the third surprise in the past 4 quarters.

Estimates Moving Higher

The Zacks Consensus Estimates were up into the number, but analysts haven't had time to start raising projections with the new results. The full-year estimates for this year have almost doubled in the past 3 months, from $0.68 to $1.32 on average.

Next year's consensus is up 66 cents, to $2.06 in that span. That puts next year's growth rate at 56% after this year's sharp turnaround.

Valuations

Shares of NPWX are trading right near book value and with a price to sales of 0.6, both metrics showing a good value. The forward P/E is about 19 times, which is not too bad considering the growth potential moving forward especially considering more upward revisions are right around the corner.

The Chart

It will be a major gut check to get into NWPX right now, as with anything out there. But with share looking so oversold, estimates rising and potential stability in the stock this could be a great time to get buy.

Northwest Pipe Co  - ticker NPWX>
 
 
<P ALIGN=

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

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%