Ferro Corporation – Value – Zacks Rank Buy
Source: http://www.zacks.com/commentary/8923/Ferro+Corporation+-+Value+-+Zacks+Rank+BuyPosted on Sunday, October 19th, 2008 | In Stocks to Watch
Ferro Corporation (FOE), the specialty chemical manufacturer, recently announced it was selling its fine chemicals business to Novolyte Technologies LP for $66 million in cash. The company said the proceeds will be used to pay down debt.
The business manufactures electrolytes used to make lithium batteries as well as specialty solvents. Novolyte will absorb the manufacturing employees.
Ferro, a Zacks #1 Rank (Strong Buy), continues to have strong fundamentals.
On Aug 5, it reported second quarter earnings that beat Wall Street estimates by 31.25%. Sales rose 17% to $650 million from $553.7 million in the year ago period.
Consensus estimates for the third quarter are steady at 31 cents per share. Full year estimates are up 5 cents to $1.38 in the last 60 days. Analysts expect 2008 year-over-year earnings per share growth of 62.65%.
Ferro is now trading at 10.5x forward earnings. Its price-to-book is 1.46. The company reports third-quarter earnings on Nov 6.
Update to Previous Value Zacks Rank Buy Stocks
The Pantry, Inc. (PTRY), a southeastern U.S. convenience store chain, saw revenues grow 20.1% in the third quarter. PTRY surprised on estimates in the last quarter by 71.43%. The Pantry is trading at 9.6x forward earnings. Read the Oct 14 analysis.
Parlux Fragrances, Inc. (PARL) saw sales surged 43% in the second quarter on the selling strength of Jessica Simpson and Paris Hilton fragrances. Branded fragrances are still a hot commodity going into the holiday season. The company has a forward P/E of 10.15. Read the Oct 15 analysis.
Medifast, Inc. (MED), which sells weight loss products and programs, is growing quickly as diet, health and fitness programs remain hot. Revenues rose 25% in the second quarter and the company recently said third quarter financials look strong. MED has a forward P/E of 9.97. Read the Oct 16 analysis.
Layne Christensen Company (LAYN), the drilling service provider, grew revenues by 23.8% in the second quarter. LAYN has surprised on earnings 3 out of the last 4 quarters on average by 19.18%. It has a forward P/E of 8.05. Read the Oct 17 analysis.
“FOE” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research
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 About Tracey Ryniec (http://www.zacks.com/)
Tracey Ryniec is an Editor at Zacks Investment Research who covers the Value Stock for the Zacks Rank Buys and Timely Buy of the Week. |
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