Flow International Corporation (NASDAQ: FLOW) develops
and manufactures ultrahigh-pressure (UHP) waterjet and machining technology for the manufacturing and surface preparation cleaning markets. It also provides specialty engineered robotic systems designed for material removal, separation of materials and factory automation. The company's product line includes waterjet cutting systems, industrial cleaning systems, UHP food processing systems, UHP industrial presses, and automated assembly systems.
The company pleased investors last week, when it reported fiscal Q3 EPS of 16 cents and revenues of $66.3 million. Analysts had been expecting 11 cents and $61.8 million.
The stock
price popped on the news and has since been consolidating the gain in a bullish "pennant" pattern. Stocks 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 four "strong buys", two "buys" and one "hold". Analysts expect a 22% average annual growth rate, through the next five years. The FLOW Sales Growth rate (18.25%) and EPS Growth rate (220.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $7.03 and $13.83. A stop-loss of $7.80 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
Entrepreneur's Journal: Key steps for telesales success
The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar
Comfort Zone Investing: Survival of the fittest -- letting some banks fail
