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Blount International, Inc. (BLT) shares headed south last month, but with estimates rising that just makes the value in this growth story even better.

Shares are a Zacks #1 Rank (Strong Buy) and the company is poised for serious growth in the near future.

Company Description

Blount makes equipment and accessories for the forestry, lawn and garden, agriculture, construction and other similar markets. The company's main products are saw chains and guide bars for chainsaws.

Top Line Swells 39%

On Aug 9 Blount reported second quarter results that showed strong organic growth as well as successful acquisitions. Sales were up 39% to $201 million, a 25% increase without the acquisitions. Domestic sales are off less than a percent but international sales jumped 35%.

Earnings per share came in at $0.28, up 9 cents over the prior year to meet expectations. Blount has a strong earnings history though, surprising in each of the last 7 quarters leading up to this one.

Outlook Improves

The company raised its guidance for both the top and bottom lines in that press release as well. Analyst estimates moved up and are now averaging $1.21 for this year. Next year's Zacks Consensus Estimate rose 7 cents, to $1.37.

If Blount can hit those targets, year-over-year growth rates would be 42% and 13%, respectively.

And a Value?

Overpaying for growth is pretty common, but BLT is a value as well as a growth story. Shares are going for 12 times forward estimates, have a PEG around 0.9, and the P/S is 1.0.

Part of that value comes from the recent sell off, but with estimates still rising this is a patient investor's opportunity.

Blount International, Inc. - ticker BLT>

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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