(CFX - Analyst Report
) has been a top stock for the last year, hitting a new multi-year high in August after reporting a 23% earnings surprise. That pushed estimates higher, providing more support and momentum for this Zacks #1 Rank stock.
Coflax Corp designs, manufactures and sells fluid handling products to a wide range of industries. The company was founded in 1860 and has a market cap of $965 million.
Industrial stocks have seen big gains over the last two years as the global economy has recovered from the financial crisis. That growth in demand was on display when Coflax reported strong Q2 results in late July that came in ahead of expectations.
Including acquisitions, revenue for the period was up 52% from last year to $187 million. Excluding acquisitions, revenue was still up a solid 14%. Earnings also looked good, coming in at 32 cents, 23% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 18% over the last four quarters.
Coflax also noted that its second-quarter orders were up 26% from last year to $196 million while its backlog stood at $383 million.
The company also has a strong financial profile, with cash and short-term investments of $64 million against $80 million in long-term debt.
We saw some decent movement in estimates off the good quarter, with the current year adding 6 cents to $1.27 while the next-year estimate gained 17 cents to $1.63, a bullish 28% growth projection.
But in spite of the gains, the valuation picture looks solid, with a PEG ratio of .68 a discount to the benchmark of 1 for value.
On the chart, shares have pulled back in the recently volatile market, but the long-term trend is still strong. Take a look below.
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.