Willdan Group, Inc. (WLDN) touched a new 52-week high of $13.96 per share yesterday, before closing the session at $13.80. This Zacks Rank #1 (Strong Buy) stock has gained nearly 160% year-to-date, with the uptrend likely to continue. This professional technical and consulting services provider has lately been gathering momentum on strong fundamentals and improved market conditions.
Growth Drivers
Willdan has been witnessing growth across all its businesses, especially in energy and engineering services. More than 50% of the company’s revenues are generated from the energy business. Diligent operational execution has enabled the company to achieve the energy-saving goals of its clients. Further, the company has positioned itself well to gain from the booming market for energy efficient solutions.
This apart, Willdan’s engineering business has also been performing impressively. The company has been reaping the benefits of the ongoing recovery in the residential housing market. Moreover, key contract wins like California High Speed Rail project and Bridge Preventive Maintenance program in Mariposa County remains a positive.
The company has been shifting its focus from sub-contracting its work to self- performance, which is likely to be a key growth factor going forward. In order to achieve this, Willdan has been ramping up its facilities. As such, the company is expecting more contract wins in near future.
Moreover, the company delivered positive earnings surprise over the trailing four quarters with an average beat of 113.39%. This has boosted investors’ confidence in it. Further, positive estimate revisions over the last 60 days have led to an 18.6% increase in the Zacks Consensus Estimate to 76 cents for 2014, making the stock even more attractive.
Other Stocks to Consider
Some other stocks worth considering in the same sector include VSE Corp. (VSEC), AO Carlisle Companies Incorporated (CSL) and ITT Corporation (ITT). All three stocks carry a Zacks Rank #2 (Buy).
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