On Jan 4, Zacks Investment Research upgraded ManTech International Corporation (MANT - Snapshot Report) to a Zacks Rank #3 (Hold). The upgrade is based on the company’s continued growth in its priority markets.
Why the Upgrade
ManTech International aims to offer unique set of indigenous tools and control mechanisms to protect the critical-information resources of the country. The company is a leader in providing mission-critical national security programs for the intelligence community; the Departments of Defense, State, Homeland Security, Energy and Justice, including the Federal Bureau of Investigation (FBI); the health and space communities; and other U.S. federal government customers. The company has been making continued efforts to identify strategic growth areas and penetrate newer markets and acquire new customers.
With strong liquidity position, ManTech is poised to register solid revenue growth for 2013. The company has the financial capacity to pursue acquisitions and issue dividends based on its strong balance sheet. In the last reported quarter, ManTech had $258.6 million in cash and cash equivalents.
For 2013, ManTech expects revenues of $2,350 million. Net income is anticipated to be $75.5 million or $2.03 per share. Going forward, the company expects the cyber, intelligence, and health businesses to continue to grow significantly.
The stock has potential for further accretion with a forward PE of 16.5x and long-term earnings growth expectations of 9.0%. Over the last 7 days, the earnings estimates did not show any upward or downward revision for 2013. Although there is a lacuna of estimate revisions, we envision an uptrend for the stock backed by its strong growth potential
Other players in the industry worth reckoning include Broadcom Corp. (BRCM - Analyst Report) carrying a Zacks Rank #1 (Strong Buy), and Marvell Technology Group Ltd (MRVL - Snapshot Report) and Amtech Systems Inc (ASYS - Snapshot Report), both carrying a Zacks Rank #2 (Buy).