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Bull Of The Day: Advanced Emissions Solutions (ADES)

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Advanced Emissions Solutions (ADES - Free Report) is a Zacks Rank #1 (Strong Buy) and it broke out the other day. Normally, I am all about growth stocks and topline is where I focus my attention, but this stock has some tremendous bottomline growth and I thought this would be a great chance to review it as a Bull of the Day.

Description

Advanced Emissions Solutions, Inc. develops, offers and implements environmental technologies, equipment and specialty chemicals that enable coal-fueled power plants to meet emissions regulations. It operates in three principal business segments: Refined Coal, Emissions Control and CO2 capture. The company also offers dry sorbent injection systems to control SO2 and acid gases. It operates primarily in the United States along with its subsidiaries. Advanced Emissions Solutions, Inc. formerly known as ADA-ES, Inc., is based in Highlands Ranch, Colorado.

Estimates

This quarter is looking at $0.64 when 60 days ago, the estimate was calling for $0.39. That is huge. But wait there is more.

Next quarter has $0.87 when 60 days ago, the estimate was calling for $0.54. That is huge. But wait there is more.

2019 is slated to come in at $3.39 when 60 days ago, the estimate was calling for $2.50. That is huge. But wait there is more.

2020 has a $5.90 number when 60 days ago, the estimate was calling for $4.15. That is huge.

The projected earnings growth for this stock is 74%.

For these moves alone, you can see why this is a Zacks Rank #1 (Strong Buy).

Valuation

Looking ahead, the 1.5 year forward multiple is less than 3 times earnings. Right now the forward PE is 3.7x with the trailing number at 7.2x. The revenue growth is 1853% -- so a jump from almost nothing a year ago. I see a 3.7x price to book and a 10x sales multiple. All of that is fine with me.

This is an earnings growth play. The dividend isn’t what I am used to getting, but it is just the icing on the top of the cake.

Chart

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