Blyth Inc. (NYSE: BTH) is the largest candle maker in the United States, marketing scented and unscented candles and portable heating fuels under such brand names as Colonial Candle, Miles Kimball, PartyLite, Sterno and Handy Fuel. The firm also offers an extensive array of decorative accessories, gourmet foods and household convenience items. Products are sold through specialty retail, wholesale, catalog, Internet and home party channels.

The company pleased investors earlier in the week, when it reported Q3 EPS of 24 cents and revenues of $285.9 million. Analysts had been looking for 12 cents and $260.6 million. Management also guided FY08 EPS to $1.37-1.42 ($1.29 Street consensus).

BTH shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with three "holds". The BTH Price to Sales ratio (0.78) and Price to Book ratio (2.67) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 70% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $15.45 and $30.22. A stop-loss of $20.50 looks good here.

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