Multi-Color Corp. (LABL) is posting big gains in 2011, recently hitting a new 52-week high on the heels of another strong quarter. With estimates on the rise and a solid valuation, this Zacks #1 Rank stock has labeled itself with momentum..
Company Description
Multi-Color Corp provides label solutions worldwide. The company was founded in 1916 and has a market cap of $342 million.
Although LABL has been trending higher for most of the year, shares got an extra boost into a new multi-year on July after reporting strong Q2 results.
Second-Quarter Results
Revenue for the period was up 36% from last year to $101 million. Earnings also came in strong at 66 cents, more than double last year’s 30 cents.
The good results were also helped by solid cost and expense management, with gross margin climbing to 22% from 20% while SG&A expenses fell 4% from the same period last year.
Estimates
We saw some pretty decent movement in estimates off the good quarter, with the current year adding 13 cents to $2.10.
Valuation
But in light of recent gains, LABL’s forward P/E of 13X is a premium to its peer average of 8X.
12-Month Chart
On the chart, shares jumped into a new multi-year high on the good quarter before pulling back a bit with the market. Look for support from the long-term trend on any weakness.
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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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