Much of the wizardry behind the amazing array of available consumer electronic devices is a function of the high-tech thinking and precision manufacturing procedures used to create the smallest components. A leader in the art of fabricating those components is headquartered in Chicago, Illinois.

Methode Electronics (NASDAQ: METH) designs, manufactures and markets devices employing electrical, electronic, wireless, sensing and optical technologies. Its various components and subsystems are used by manufacturers of automobiles, computers, voice/data systems, aircraft, industrial equipment and medical devices. The firm also provides electrical, environmental and industrial testing services. Methode works through facilities in North America, Europe and Asia.

The company surprised the Street last week when it reported fiscal Q3 EPS of 18 cents and revenues of $105.4 million. Analysts had been looking for 9 cents and $100.9 million. Management also guided FY07 EPS to 52-61 cents (47 cent consensus) and FY07 revenues to $430-$440 million ($424.86M consensus). The CEO cited solid business growth in power distribution, fiber-optic, and Europe/Asia automotive products for the favorable figures. He also noted that both of Methode's Chinese businesses are now turning profits. The METH price popped through moving average resistance on the news and has since been defining a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy" and two "holds." Analysts see a thirty percent growth rate through the next year. The stock's Price to Sales ratio (1.10), Price to Book ratio (1.53), Price to Cash Flow ratio (11.87), Price to Free Cash Flow ratio (29.89) and EPS Growth rate (125.00%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 91% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $7.07 and $13.43. A stop-loss of $10.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.