Altra Holdings, Inc. (AIMC) recently rebounded from a key long-term trend line to move back within striking distance of the all-time high at $27.48. With an average earnings surprise of 19% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock has plenty of momentum.
Company Description
Altra Holdings, Inc., through its subsidiary Altra Holding Motion, Inc, is an industrial good company that designs and produces a line of mechanical power transmission and motion control products worldwide. The company was founded in 2004 and has a market cap of $662 million.
Industrial goods companies have been posting big gains over the last year, jumping higher with the market on a stronger global economy. That trend was on display when Altra reported strong Q1 results from last April that came in well ahead of expectations.
First-Quarter Results
Revenue for the period was up 25% from last year to $160 million. Earnings also looked great, coming in at 40 cents, 21% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 19% over the last four quarters.
Financial Profile
Altra has used its strong earnings momentum of the last year to strengthen its balance sheet, with cash and short-term investments up $92 million to $146 million.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 16 cents to $1.52 while the next-year estimate gained 25 cents to $1.84, a bullish 21% growth projection.
Valuation
But in spite of the gains, the valuation still looks good, with a PEG ratio of .81, well below the benchmark for value of 1.
12-Month Chart
On the chart, shares recently rebounded from a key trend line to move back within striking distance of the 52-week high. Look for more support from the trend on any additional weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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