Carbo Ceramics, Inc. - Momentum
September 15 2011 - 8:00PM
Zacks
Carbo Ceramics, Inc. (CRR) has been a standout energy stock,
hitting a series of new highs over the last year on surging demand.
With an average earnings surprise of 15% over the last four
quarters and bullish 34% growth projection, this Zacks #2 Rank
stock has momentum to burn.
Company Description
Carbo Ceramics, Inc. makes and sells ceramic
propant, a key ingredient used by oil-field service companies in
the extraction of crude and natural gas. The company was founded in
1987 and has a market cap of $3.5 billion.
Carbo has been screaming higher for the last year,
with shares advancing from $77 last fall to a recent high above
$183. That movement has been supported by impressive sales and
earnings growth on display with strong Q2 results from late July
that came in ahead of expectations.
Revenue for the period was up 34% from last year to
$150 million. Earnings also looked good, coming in at $1.29, 2%
ahead of the Zacks Consensus Estimate, where the company has an
average earnings surprise of 15% over the last four quarters.
Over the last year Carbo has been moving
aggressively to increase production to satisfy surging demand. On
that note, the company noted that its tracking ahead of schedule on
adding capacity to one of its plants, now scheduled from completion
by the fourth quarter. That will boost production by 250 million
pounds, bring its total annual production capacity to 2.1 billion
pounds.
Financial Profile
Carbo's enormous earnings power has enabled it to
build a pristine balance sheet, with cash and short-term
investments of $53 million against no long-term debt.
Estimates
We saw some movement in estimates off the good
quarter, with the current year adding 9 cents to $5.46 while the
next-year estimate gained 49 cents to $7.32, a bullish 34% growth
projection.
Valuation
But in spite of the gains, the valuation picture
looks solid with a PEG ratio of .79 well below the benchmark of 1
for value.
12-Month Chart
On the chart, CRR fell with the market in July and
August before aggressively rebounding over the last month. Look for
support from the trend line on any weakness, take a look below.
This Week's Momentum Zacks Rank Buy
Stocks
New Oriental Education & Technology
Group (EDU) recently spiked into a new multi-year high after
reporting another great quarter that included a 100% earnings
surprise. With estimates on the rise and a bullish growth
projection, this Zacks #1 Rank stock offers a lesson on momentum.
Read Full Article.
National Beverage Corp (FIZZ) has been a
steady player in the weak market, recently hitting a new 52-week
high on another strong quarter. With estimates on the rise and a
high industry rank this Zacks #1 Rank stock is bubbling with
momentum. Read Full Article.
Royal Gold, Inc. (RGLD) has seen huge gains
over the last two months, with shares up as much as 30% as gold hit
a series of new all-time highs. With estimates on the rise and gold
fever running strong, this Zacks #1 Rank stock is at the top of the
momentum chart. Read Full Article.
Verifone Systems, Inc. (PAY) struggled with
the market in July and August, but shares recently got a nice boost
after the company reported strong Q3 results that included big
gains from last year. With estimates on the rise and a bullish
growth projection, this Zacks #1 Rank stock is developing a case of
momentum. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist
for Zacks.com. He is also the Editor in charge of the Zacks
Momentum Trader Service.
CARBO CERAMICS (CRR): Free Stock Analysis Report
Zacks Investment Research
CARBO Ceramics (NYSE:CRR)
Historical Stock Chart
From Jul 2024 to Aug 2024
CARBO Ceramics (NYSE:CRR)
Historical Stock Chart
From Aug 2023 to Aug 2024