AZZ Inc.

Highlighted stocks include AZZ Inc. (AZZ - Snapshot Report), Syngenta AG (SYT - Snapshot Report), CARBO Ceramics, Inc. (CRR - Snapshot Report), Multi-Fineline Electronix, Inc. (MFLX - Snapshot Report), and FUQI International, Inc. (FUQI - Snapshot Report) .

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AZZ Inc. (AZZ - Snapshot Report) reported third-quarter 2009 earnings on Jan 9 that beat Wall Street estimates by 8.64% on the strength of a record setting backlog. It was the third earnings surprise in a row for the company.

AZZ manufactures electrical equipment worldwide for the industrial, power generation, transmission and distribution markets. It is also a provider of hot dip galvanizing services to the steel fabrication market nationwide.

Net income rose 34% to $10.8 million, or 88 cents per share, from $8.1 million, or 66 cents, in the third quarter of fiscal 2008. Analysts expected 81 cents.

Revenue jumped 26% to $108.9 million from $86.6 million in the same period a year ago as both segments saw gains. Revenue for the Electrical and Industrial Products Segment climbed 20% to $62 million from $51.5 million in the previous year while the Galvanizing Services Segment gained 34% to $46.9 million.

The backlog continues to be impressive, rising 33% to a record $195.3 million compared to $147.1 million as of Nov 30, 2007. The backlog stood at $190.8 million at the end of the second quarter 2008.

2009 Guidance Raised Again

Given the strong third-quarter, AZZ raised earnings guidance for fiscal year 2009 to the range of $3.35 to $3.45 from $3.25 to $3.35 forecast in September. Revenue guidance remained the same - in the range of $420 to $430 million.

Value Fundamentals Still Solid

When we last reviewed AZZ on Oct 31, 2008, it was a Zacks #1 Rank (strong buy) but is now a Zacks #2 Rank (buy) stock. It is still cheap, trading at only 7.09x forward earnings. Its price-to-book is 1.79.

Read the Oct 31, 2008 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Syngenta AG (SYT - Snapshot Report), a Swiss-based agribusiness company, sees strong growth in the agricultural sector with 2009 earnings expected to grow in the high teens. SYT has a PEG of only 0.70. Read the Jan 6, 2009 analysis.

CARBO Ceramics, Inc. (CRR - Snapshot Report), the manufacturer of ceramic proppant which is used in the oil drilling process, saw record proppant sales in the third quarter. CARBO has surprised on estimates 4 consecutive quarters. CRR has a forward P/E of 12. Read the Jan 7, 2009 analysis.

Multi-Fineline Electronix, Inc. (MFLX - Snapshot Report), one of the largest producers of circuits, raised 2009 guidance on Jan 5 on strong customer demand as the small tech products such as smartphones continue to sell. MFLX has surprised on estimates 3 out of the last 4 quarters on average of 102.06%. MFLEX has a forward P/E of 11.4. Read the Jan 8, 2009 analysis.

FUQI International, Inc. (FUQI - Snapshot Report) is finding opportunities in the Chinese precious metal jewelry market, as revenue grew 159% in the third quarter. The company is expected to grow earnings by 29.51% in 2009. FUQI is cheap with a PEG of only 0.17. Read the Jan 9, 2009 analysis.