Brunswick Corp ( BC - Snapshot Report ) operates in markets that are highly sensitive to the economy, so this is a pretty aggressive play. But, with earnings momentum this Zacks #1 Rank (Strong Buy) could turn around sharply if economic worries start to fade.

Company Description

Brunswick Corp is best known for making bowling and billiard equipment under the Brunswick name, but the company also makes marine engines and accessories under the Mercury, Mariner, and other brands as well as fitness equipment.

Well Ahead of Expectations

On Oct 27 the company released third-quarter results that showed an 8% increase in sales, to $877 million. Brunswick said increasing market share was the biggest factor on the top line and also led to the best operating results in 5 years.

Net income came in at $4.7 million, but thanks to plenty of charges, that comes out to EPS of $0.33. Analysts polled by Zacks were looking for just 6 cents per share. There is a wide discrepancy over the amount of those charges factored into the EPS figure, but most major sources have the quarter listed as better-than-expected.

Upward Revisions

The Zacks Consensus Estimate for this year is now at $0.72 after upward revisions. Next year's average projection is up 12 cents, to $1.38.

Last year the company lost $0.54 per share, so this is quite a turnaround story this year, followed by a 92% growth rate next year.

Valuations

Brunswick won't be luring any value investors in at these levels though. Shares are at 12 times the 2012 estimate, but are still trading at over 7 times book value. The price to sales of 0.4 times is pretty good though.

The Chart

Shares of BC have been trending lower lately, but as they start to look oversold traders may start coming in. This stock is still a Zacks #1 Rank (Strong Buy) but this is still a highly aggressive play.

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