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Aggressive Growth

Omega Protein Corp is seeing steady upward estimates revisions after its latest earnings surprise. The results ended a streak of misses and could be a sign that this Zacks #1 Rank (Strong Buy) is set for a nice run.

Company Description

Omega Protein is a nutritional ingredient company, producing omega-3 fish oil and specialty fish meal products.

Healthy Growth Rates

Estimates for Omega Protein have been up nicely in recent months, with this year's Zacks Consensus Estimate up 6 cents, to $1.28. Next year's average forecast is up 11 cents, to $1.44.

In 2010 the company made $0.97 per share, so the projected growth rates are currently 32% and 13%, respectively. Analysts are looking for annual growth rates of 10% for the next 3-5 years.

Not a Bad Deal

Shares of OME are trading with a single digit forward P/E and a PEG ratio at just 0.8 time. Both the price to sales and price to book are just under 1.0.

Earnings History

Omega Protein is not the picture of stability when it comes to earnings results, but they have ended a long streak of missed by beating estimates last quarter.

On Aug 3 earnings per shares came in a penny better than expected, at $0.27. Revenue was up 22%, to $44.2 million. Profits and margins also improved since last year thanks to both higher volume and higher prices.

Claims are Settled

Omega Protein also announced that it agreed to a final settlement from the Deepwater Horizon accident, (Gulf of Mexico Oil Spill) from back in April of 2010.

The company received a final payment just north of $26 million, which puts total damages awarded at $44.9 million.

The Chart

Shares of OME have taken a hit in recent months, despite the rising estimates. If the risk appetite for investors continues to increase, this Zacks #1 Rank (Strong Buy) could see some big gains.

Omega Protein  - ticker OME>

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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