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Hudson Technologies (HDSN) Surges 35% on Deal with U.S. DOD
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Hudson Technologies (HDSN - Free Report) opened up 35% in mid-morning trading Tuesday on news that it has been awarded a five-year contract worth over $400 million with the Department of Defense (DOD).
More Info on the Deal
Specifically, the contract also comes with a five-year renewable option, and was awarded by the United States Defense Logistics Agency (DLA), an agency within the Department of Defense. Based in Pearl River, NY, Hudson Technologies operates a domestic and international refrigerant services business, which includes reclamations of refrigerants and laboratory testing.
As per the official announcement, Hudson will provide the DOD with both the management and supply of refrigerants, compressed gases, cylinders and related items to U.S. Military commands and installations. CEO and Chairman Kevin Zugibe stated “This award was two years in the making and represents a transformative win for Hudson.”
Outlook on Hudson
Analysts have not revised estimates for Hudson in the last 60 days, with current estimates standing at $0.11 in earnings per share for the current quarter and $0.24 in earnings per share for this fiscal year. With a P/E ratio of 14.27 compared to an industry average of 19.14, along with projected sales growth that is an explosive 941% higher than the industry average, Hudson appears to be comparatively undervalued and likely on the right track.
Hudson stock is up 16.5% year-to-date, and holds a very low 7.40% debt to capital ratio, which is important to note considering the company otherwise has a low net income. Although Hudson has lower historical EPS growth (within a 3-5 year timeframe) than the companies tracked in the S&P 500 index, their newest deal along with its renewal option could change that moving forward.
Hudson currently sits at a Zacks Rank #3 (Hold).
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Hudson Technologies (HDSN) Surges 35% on Deal with U.S. DOD
Hudson Technologies (HDSN - Free Report) opened up 35% in mid-morning trading Tuesday on news that it has been awarded a five-year contract worth over $400 million with the Department of Defense (DOD).
More Info on the Deal
Specifically, the contract also comes with a five-year renewable option, and was awarded by the United States Defense Logistics Agency (DLA), an agency within the Department of Defense. Based in Pearl River, NY, Hudson Technologies operates a domestic and international refrigerant services business, which includes reclamations of refrigerants and laboratory testing.
As per the official announcement, Hudson will provide the DOD with both the management and supply of refrigerants, compressed gases, cylinders and related items to U.S. Military commands and installations. CEO and Chairman Kevin Zugibe stated “This award was two years in the making and represents a transformative win for Hudson.”
Outlook on Hudson
Analysts have not revised estimates for Hudson in the last 60 days, with current estimates standing at $0.11 in earnings per share for the current quarter and $0.24 in earnings per share for this fiscal year. With a P/E ratio of 14.27 compared to an industry average of 19.14, along with projected sales growth that is an explosive 941% higher than the industry average, Hudson appears to be comparatively undervalued and likely on the right track.
Hudson stock is up 16.5% year-to-date, and holds a very low 7.40% debt to capital ratio, which is important to note considering the company otherwise has a low net income. Although Hudson has lower historical EPS growth (within a 3-5 year timeframe) than the companies tracked in the S&P 500 index, their newest deal along with its renewal option could change that moving forward.
Hudson currently sits at a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>