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Treehouse Foods, Inc. – Momentum – Zacks Rank Buy

Source: http://www.zacks.com/commentary/10099/Treehouse+Foods%2C+Inc.+-+Momentum+-+Zacks+Rank+Buy
Posted on Monday, February 23rd, 2009 | In Stocks to Watch
Contributed by: Michael Vodicka (http://www.zacks.com/) -

Companies highlighted in this weekly wrap include Treehouse Foods, Inc. (THS), Macrovision Solutions Corp. (MVSN), Brinks Home Security Holdings, Inc. (CFL) & TransDigm Group, Inc. (TDG).


Treehouse Foods, Inc.’s (THS) share price recently surged above a key level of resistance after the company reported strong fourth-quarter results on Feb 13.

Fourth-Quarter Results

Sales were up 7.3% from last year to $398 million. When excluding one-time items, earnings came in at 55 cents per share, ahead of estimates by 4 cents. Treehouse noted that the gains were a result of having E.D. Smith sales and profits on its balance sheet for a full year.

Estimates Climb Higher

After the solid quarter, analysts raised their earnings outlook, with the current-year estimate increasing 7 cents to $1.83 per share. The next-year estimate is pegged at $2.10, a 14.5% earnings growth projection.

The Chart

Shares of this Zacks #1 rank stock have been rallying since bottoming out in early December just above $20. Since then, THS has topped off just above $28, eclipsing a short-term level of resistance at $27.50. Take a look at the chart below.

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Last Week’s Momentum Zacks Rank Buy Stocks

Macrovision Solutions Corp. (MVSN) recently acquired a new company and shed some of its divisions in order to better position itself for future gains. The analyst community is projecting 31% earnings growth in the next-year period. Read full Analysis.

Brinks Home Security Holdings, Inc. (CFL) recently eclipsed its all-time high after crossing above the $25 mark. Read full Analysis.

TransDigm Group, Inc. (TDG) is fresh off the heels of very solid first-quarter results in which income was up 40% from last year. Estimates have recently been lifted and the company’s share price is pressuring a short-term level of resistance. Read full Analysis.
“THS” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Last 5 posts by Michael Vodicka





About Michael Vodicka (http://www.zacks.com/)
Michael is an Editor at Zacks Investment Research who covers the Momentum and Aggressive Stocks for the Zacks Rank Buys.

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