Highlighted stocks include Solera Holdings, Inc. (SLH), Triumph Group, Inc. (TGI), TransDigm Group, Inc. (TDG), Genesis Energy, L. P. (GEL), and Fuel Systems Solutions, Inc. (FSYS) .

Solera Holdings Inc. (SLH) reported second-quarter 2009 earnings on Feb 4 that beat Wall Street estimates by 8.82%, or 3 cents per share.

It was the fourth consecutive earnings surprise for the company.

Solera Holdings provides software and other services to the automobile insurance claims processing industry in over 50 countries. The company processes nearly $20 billion in claims for 55,000 customers each year.

Revenue fell 0.6% to $131.3 million from $132.1 million a year ago but after adjusting for foreign currency exchange rates it rose 10.3%. Net income climbed 39.6% to $26.1 million from $18.7 million in the prior year period.

Even with the tough global economic conditions, Solera grew the number of claims it processed year-over-year and increased revenue per-claim.

2009 Outlook

The strengthening US Dollar over the past few months has been a boom to Solera. Given this strength, the company updated its 2009 financial guidance with revenue forecasted higher in the range of $549 to $553 million from previous guidance of $530 to $535 million.

SLH reaffirmed EPS between $1.56 to $1.60 per share.

Value Fundamentals

When we last reviewed Solera on Nov 14, it was a Zacks #1 Rank (strong buy) stock. It has since fallen to a Zacks #2 Rank (buy) stock.

SLH is trading at 13x forward earnings. It has a price-to-book of 3.12. The company has an outstanding 1-year return on equity (ROE) of 18.84%.

Read the Nov 14, 2008 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Triumph Group, Inc. (TGI), the aviation parts manufacturer, continued its streak of beating Wall Street estimates as it recently surprised on estimates by 19.82% in the third-quarter 2009 and has now surprised 4 quarters in a row by an average of 24.39%. The stock is cheap. It trades with a PEG of 0.68. Read the Feb 3 analysis.

TransDigm Group, Inc. (TDG), the aviation components manufacturer, raised 2009 guidance after it surprised on analysts’ estimates on Feb 3 by 34.5%. TDG is trading at 12.45x forward earnings. Read the Feb 4 analysis.

Genesis Energy, L. P. (GEL) just announced its 14th consecutive quarterly dividend increase as the energy transporter continues to see increased profits. The stock is cheap. GEL trades at only 7x forward earnings and has a current dividend yield of 11.80%. Read the Feb 5 analysis.

Fuel Systems Solutions, Inc. (FSYS) is riding the alternative energy boom to big profits as the company has crushed estimates 4 consecutive quarters by an average of 147.21%. FSYS is both a value and a growth stock, with a PEG ratio of only 0.62. Read the Feb 6 analysis.

“SLH” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

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