Altra Holdings, Inc.
(AIMC - Analyst Report
) recently rebounded from a key long-term trend line to move back within striking distance of the all-time high at $27.48. With an average earnings surprise of 19% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock has plenty of momentum.
Altra Holdings, Inc., through its subsidiary Altra Holding Motion, Inc, is an industrial good company that designs and produces a line of mechanical power transmission and motion control products worldwide. The company was founded in 2004 and has a market cap of $662 million.
Industrial goods companies have been posting big gains over the last year, jumping higher with the market on a stronger global economy. That trend was on display when Altra reported strong Q1 results from last April that came in well ahead of expectations.
Revenue for the period was up 25% from last year to $160 million. Earnings also looked great, coming in at 40 cents, 21% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 19% over the last four quarters.
Altra has used its strong earnings momentum of the last year to strengthen its balance sheet, with cash and short-term investments up $92 million to $146 million.
We saw some decent movement in estimates off the good quarter, with the current year adding 16 cents to $1.52 while the next-year estimate gained 25 cents to $1.84, a bullish 21% growth projection.
But in spite of the gains, the valuation still looks good, with a PEG ratio of .81, well below the benchmark for value of 1.
On the chart, shares recently rebounded from a key trend line to move back within striking distance of the 52-week high. Look for more support from the trend on any additional weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.