Coleman Cable (CCIX) is showing fantastic growth rates which can be bought at a good price. Estimates are moving higher and CCIX is leading a hot industry.
Coleman Cable, Inc. makes electrical and electronic wire and cable products for many different markets with both commercial and retail uses.
Sales Jump 26%
On Aug 4 Coleman Cable said its top line grew 26% to $220 million for the second quarter of 2011. Much of that increase was do to changes in pricing but volume was up about 2.5% as well.
Earnings per share met expectations at $0.29, which was a 53% increase from the $0.19 a year ago.
The company said that while they do see higher costs posing some inflationary pressure, it should be overcome by the strength of the current business and an uptick in seasonal trends.
Additionally, Coleman Cable said its board has authorized up to half a million shares to be repurchased over the next 2 years.
Outlook Moves Higher
Currently there is only 1 analyst the weighs in on CCIX, so it is not much of a consensus. But, that analyst raised the full-year target for this year 7 cents to $1.10. Next year's estimate is up 18 cents, to $1.46.
In 2010 the company earned $0.61 per share, putting expected growth rates at 80% and 33%. Given the higher expectations, the P/E is now about 10 times and the PEG ratio is at 1.2. So, you can get those growth rates at a pretty good price right now.
Right now the Wire and Cable Products industry ranks fifth out of 265, on Zacks.com. Coleman is at the top of the 8 company group.
Shares on Sale
CCIX got hammered this summer but is showing some signs of a rebound. Many stocks that were hit in the recent sell off have already sprung back, but it is not too late to get in on this Zacks #1 Rank (Strong Buy). The MACD is also on the verge of producing a momentum-base buy signal.
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