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The Toro Company (TTC - Free Report) should see some pent up demand hit the bottom line this summer as retail and commercial customer confidence rebounds.

Shares have pulled back recently, making this Zacks #1 Rank (Strong Buy) a great buy-on-the-dip play.

Company Description

Toro makes turf and landscaping equipment. Their lawnmowers and irrigation systems are used on residential homes, commercial uses and maintain golf courses and sports fields.

Should See a Strong Summer

In the last quarterly report, back in February, the company said that it continues to see confidence from professional customers as they reinvest in their businesses. Additionally, Toro is expecting a record level of new products, which will build market share and drive retail demand.

Pent up demand from home and business owners over the past couple years should held drive earnings higher for this very seasonal company.

Right now analysts are looking for $1.61 per share when Toro reports in May. That represents a 20% year over year improvement. For the fiscal 2011 analysts are calling for a 24% increase in EPS, to $3.46.

Next year's forecasts project a 17% growth rate, to $4.03. The current year consensus jumped 21 cents on the last quarterly report while the fiscal 2012 figure rose 11 cents.

Priced Right

Shares of TTC are not much of a deal, but they are not going for a premium either. The forward P/E is about 18 times and the PEG ratio and price to sales are near 1.2.

While these won't be wooing any value investors, as long as estimates keep rising the growth should be plenty to drive shares higher.

The Chart

With the overall weakness in the market recently, shares of TTC have moved a bit lower. But, given everything that Toro and its analysts have said, this looks like a great buy-on-the-dip opportunity.

The Toro Company   - ticker TTC>


Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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