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Intevac (IVAC - Free Report) recently reported a very strong quarter at the start of February. The company posted EPS of $0.13 when the Zacks Consensus Estimate was calling for $0.07. That $0.06 beat was good for a positive earnings surprise of 85%. That big beat put the stock on a lot of radar screen but it is the Bull of the Day for another, much more important reason.
Description
Intevac makes vacuum deposition equipment for various thin-film applications, and digital night-vision technologies and products. Intevac, Inc. was founded in 1990 and is headquartered in Santa Clara, California.
Growth And Value
Growth investors and value investors are looking for different things and usually a good growth stock is not a value. IVAC posted revenue growth of 76% on a year over years basis in the most recent report. That followed growth of 23% in the previous period.
On the value side, the company noted that book value at the end of the quarter as $71M, and with the stock trading at just under $200M in market cap we have a 2.8x price to book multiple. Usually, value investors are looking at stocks that have a price to book multiple of less than 3x, and IVAC fits the bill.
This stock is the Bull of the Day because of the tremendous increase in earnings estimates. Over the last five or so years of being at Zacks I don’t think I have ever seen an estimate increase like this from a company as small as this.
The best way to look at this is the table that is available on the detailed estimates page on the Zacks website. Since you might be viewing this somewhere else, here is what the “magnitude” table looks like:
If you cannot see the chart, let me explain why I love what I see. Basically, all the estimates are moving higher. The current quarter has moved from $0.02 to $0.04 and that is a 100% increase. The next quarter moved from $0.00 to $0.02 and I know that is a big increase too.
The 2017 year estimate moved from $0.02 to $0.07, a move higher of 2.5x the original amount. That is huge… but hold on, the best one is yet to come. The 2018 number has moved from $0.04 to $0.22. That $0.18 increase is more than 4x the original number, and that will go a long way to making those forward earnings multiples rather palatable down the road.
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Bull Of The Day: Intevac (IVAC)
Intevac (IVAC - Free Report) recently reported a very strong quarter at the start of February. The company posted EPS of $0.13 when the Zacks Consensus Estimate was calling for $0.07. That $0.06 beat was good for a positive earnings surprise of 85%. That big beat put the stock on a lot of radar screen but it is the Bull of the Day for another, much more important reason.
Description
Intevac makes vacuum deposition equipment for various thin-film applications, and digital night-vision technologies and products. Intevac, Inc. was founded in 1990 and is headquartered in Santa Clara, California.
Growth And Value
Growth investors and value investors are looking for different things and usually a good growth stock is not a value. IVAC posted revenue growth of 76% on a year over years basis in the most recent report. That followed growth of 23% in the previous period.
On the value side, the company noted that book value at the end of the quarter as $71M, and with the stock trading at just under $200M in market cap we have a 2.8x price to book multiple. Usually, value investors are looking at stocks that have a price to book multiple of less than 3x, and IVAC fits the bill.
Follow Brian Bolan on Twitter @BBolan1
Why I Like It
This stock is the Bull of the Day because of the tremendous increase in earnings estimates. Over the last five or so years of being at Zacks I don’t think I have ever seen an estimate increase like this from a company as small as this.
The best way to look at this is the table that is available on the detailed estimates page on the Zacks website. Since you might be viewing this somewhere else, here is what the “magnitude” table looks like:
If you cannot see the chart, let me explain why I love what I see. Basically, all the estimates are moving higher. The current quarter has moved from $0.02 to $0.04 and that is a 100% increase. The next quarter moved from $0.00 to $0.02 and I know that is a big increase too.
The 2017 year estimate moved from $0.02 to $0.07, a move higher of 2.5x the original amount. That is huge… but hold on, the best one is yet to come. The 2018 number has moved from $0.04 to $0.22. That $0.18 increase is more than 4x the original number, and that will go a long way to making those forward earnings multiples rather palatable down the road.
Intevac, Inc. Price and Consensus
Intevac, Inc. Price and Consensus | Intevac, Inc. Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>