Immucor (NASDAQ: BLUD) provides
automated systems used by hospitals, clinical laboratories and blood banks to detect and identify certain properties of the cell and serum components of human blood prior to transfusion. Products are primarily used to type blood and detect foreign antibodies. Immucor sells its systems and reagent tests directly in North America, Western Europe and Japan.
The company made news earlier in the week, when it reported Q3 EPS of 27 cents and revenues of $67.3 million. Analysts had been looking for 22 cents and $62.9 million. Management also guided FY08 EPS to at least 96 cents (92 cent consensus) and FY08 revenues to at least $257 million ($255.89M consensus).
The share
price popped into the initial stage of a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Altogether, brokers recommend the issue with one "strong buy" and three "buys". Analysts see a 25% average annual growth rate, through the next five years. The BLUD PEG ratio (1.03), Price to Free Cash Flow ratio (29.41), EPS Growth rate (28.02%), Operating Margin (42.18%), Net Profit Margin (28.14%), Return on Assets (24.05%), Return on Investment (27.50%) and Return on Equity (29.61%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 93% 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 $17.30 and $39.96. A stop-loss of $22.50 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.
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