It's been said that if the U.S. state of Georgia were an independent nation, it would have the 18th largest economy in world. The "Empire State of the South" ranked tenth in U.S. in per capita personal income in 2005, and has one of the fastest growing populations in the U.S. -- about a million additional people between 2000 and 2005. Its diverse industrial output ranges from peaches and peanuts, to textiles, food processing, and aircraft manufacturing, to publishing and tourism. Georgia is home to such corporate giants as Coca-Cola Co. (NYSE: KO); Delta Air Lines Inc. (NYSE: DAL); Home Depot Inc. (NYSE: HD); UPS (NYSE: UPS); Newell Rubbermaid Inc. (NYSE: NWL), and Equifax Inc. (NYSE: EFX).
It's also home to Acuity Brands Inc. (NYSE: AYI) and Global Payments Inc. (NYSE: GPN), both of which represented Georgia on the Forbes 2007 list of 100 best mid cap stocks. I examine two other Peach State companies -- RPC Inc. (NYSE: RES) and Radiant Systems Inc. (NASDAQ: RADS) -- in a separate Investing in Georgia post.
Acuity Brands manufactures a variety of lighting fixtures, from those found in residential homes to the high-mast systems that illuminate highways and parking lots. This Atlanta-based company also makes such chemical products as disinfectants and pesticides for industrial and institutional use. Acuity reported a record fourth quarter in October, with net income up 24% over a year ago. But earnings per share of $1.18 were in-line with the estimates of analysts surveyed by Thomson Financial, the first time Acuity's earnings failed to beat EPS expectations since the second quarter of 2006. The company's five-year EPS growth of 28.3% beat both the industrials sector average and the S&P 500. The analysts' consensus recommendation on Acuity has recently shifted from hold to buy. The share price tumbled to a 52-week low of $37.87 last week, but opened today at $40.08. Acuity has just spun off its Zep brands, which will begin trading as ZEP, as well as be listed on S&P Small Cap 600.
Global Payments is also headquartered in Georgia's capital, and as its name suggests, the company provides transaction processing systems and services for retailers, financial institutions, and government agencies. Its three-year EPS growth of 26.7% was better than both its industry average and the S&P 500. Global Payments has beat earnings expectations in the past three quarters, reporting 54 cents per share in the first quarter FY2008 report back in September. The consensus recommendation is to buy GPN, and has been for the past year. Eleven of the 21 analysts consider it a strong buy. The share price has been climbing this past quarter, but has a little way to go to reach its 52-week high of $49.13 from back in January. In a recent Mad Money Lightning Round, Jim Cramer couldn't find much reason for the stock to go higher, but the Motley Fool likes Global Payments for its steady growth and healthy margins.
I do not own shares in these stocks. As always, be sure to do your homework before investing.
See also: Investing in North Carolina, Investing in Tennessee, and Investing in New Jersey.
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Reader Comments (Page 1 of 1)
11-05-2007 @ 6:13PM
william lindblad said...
It remains obvious that you have not been to Ga. lately. The current drought is the worst in the U.S.
It takes water to grow crops. Two weeks ago, Atlanta had only a 90 day supply.