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Coflax Corp. (CFX - Analyst Report) has been a top stock for the last year, hitting a new multi-year high in August after reporting a 23% earnings surprise. That pushed estimates higher, providing more support and momentum for this Zacks #1 Rank stock.

Company Description

Coflax Corp designs, manufactures and sells fluid handling products to a wide range of industries. The company was founded in 1860 and has a market cap of $965 million.

Industrial stocks have seen big gains over the last two years as the global economy has recovered from the financial crisis. That growth in demand was on display when Coflax reported strong Q2 results in late July that came in ahead of expectations.

Second-Quarter Results

Including acquisitions, revenue for the period was up 52% from last year to $187 million. Excluding acquisitions, revenue was still up a solid 14%. Earnings also looked good, coming in at 32 cents, 23% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 18% over the last four quarters.

Coflax also noted that its second-quarter orders were up 26% from last year to $196 million while its backlog stood at $383 million.

Financial Profile

The company also has a strong financial profile, with cash and short-term investments of $64 million against $80 million in long-term debt.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 6 cents to $1.27 while the next-year estimate gained 17 cents to $1.63, a bullish 28% growth projection.

Valuation

But in spite of the gains, the valuation picture looks solid, with a PEG ratio of .68 a discount to the benchmark of 1 for value.

12-Month Chart

On the chart, shares have pulled back in the recently volatile market, but the long-term trend is still strong. Take a look below.

This Week's Momentum Zacks Rank Buy Stocks

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Stamps.com (STMP) took flight in July and August, hitting a string of new highs on Q2 results that came in well ahead of expectations. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock will deliver momentum to your portfolio. Read Full Article.

First Majestic Silver Corp. (AG) has traded strong in the volatile market of the last two months, following precious metals higher as investors search for safety. With estimates taking a big jump in the last month, this Zacks #1 Rank stock is a shining picture of momentum. Read Full Article.

Konami Corp (KNM) is trading in a class of its own, surging more than 50% in July and August while the market was on the downswing. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is supercharged with momentum. Read Full Article.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.

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