Zacks Investment Research upgraded CUI Global, Inc. CUI to a Zacks Rank #1 (Strong Buy) on Dec 8, 2015. Going by the Zacks model, companies holding a Zacks Rank #1 have strong chances of outperforming the broader markets over the next few quarters.
Why the Upgrade?
Market sentiments have been strengthening, with the share price up 6% for CUI Global since the company reported better-than-expected resulted for third-quarter 2015 on Nov 9. The company recorded earnings of 1 cent per share while the Zacks Consensus Estimate had pegged it at a loss of 2 cents per share.
CUI Global's top-line performance was impressive as revenues grew 17% year over year while gross profit margin increased 100 basis points to 38%. Backlog for the Power and Electro-Mechanical segment was $23.5 million and $15.3 million for the Gas segment.
In the quarters ahead, CUI Global anticipates to leverage benefits from its strong product offerings, solid customer base and growing product demand. Over the last 60 days, the Zacks Consensus Estimate for the company has improved to 19 cents loss per share from 21 cents loss per share for 2015. The Zacks Consensus Estimate is earnings of 31 cents per share for 2016. Also, the company has an Earnings ESP of +5.26% for 2015.
Stocks to Consider
CUI Global currently has a market capitalization of $146.5 million. Some of the other stocks in the sector that warrant a look include Encore Wire Corp. WIRE, Codexis, Inc. CDXS and Perma-Fix Environmental Services Inc. PESI. While Encore Wire and Codexis sport a Zacks Rank #1 (Strong Buy), Perma-Fix Environmental Services carries a Zacks Rank #2 (Buy).
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