Tredagar Corp. (TG) has been trading strong for the last few months, recently jumping back to its 52-week high on another strong quarter. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is a hot pick for momentum.
Company Description
Tredagar Corp., through its subsidiaries, manufactures and sells plastic films and aluminum extrusions worldwide. The company was founded in 1988 and has a market cap of $716 million.
Tredagar has been on the upswing since early October, but shares got an extra boost in early November after the company reported strong Q3 results that came in well ahead of expectations.
Third-Quarter Results
Revenue for the period was up 3% from last year to $203 million. Earnings also came in strong at 26 cents, 13% ahead of the Zacks Consensus Estimate.
The good quarter was driven by gains in the company’s Aluminum Extrusions segment, where sales increased 22% from last year to $67 million on a 12% gain in volume.
Financial Profile
The company has used its recent earnings momentum to strengthen its financial profile, with cash and short-term investments up 75% to $109 million against no long-term debt.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year up a penny to 97 cents while the next-year estimate gained 24 cents to $1.39, a bullish 43% growth projection.
Valuation
But in spite of the recent gains. TG’s PEG ratio of .56 is well below the benchmark of 1 for value.
6-Month Chart
On the chart, TG has been gaining since early October as the market began to recover from some short-term weakness. Look for support from the trend line on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
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