Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerLaBarge (AMEX: LB) designs,
engineers and manufactures electronic, electro-mechanical and interconnect systems for the broad industrial market. The firm's printed circuit boards, cables and electronic assemblies are used primarily in military communication systems, commercial aircraft, satellites and oil drilling equipment. Customers include Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Schlumberger (NYSE: SLB).
The company pleased investors last month, when it guided fiscal Q3 EPS to 23-24 cents and Q3 revenues to $70-$72 million. The Street had been expecting 21 cents and $65.47 million. Management also predicted that Q4 results will be at least as strong as those achieved in Q3.
The issue
popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
The brokerage community recommends the shares with a "buy" and expects a 15% average annual growth rate, through the next five years. The LB P/E ratio (17.83), PEG ratio (1.19), Price to Sales ratio (0.80), Price to Book ratio (2.39) and Price to Cash Flow ratio (11.92) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 38% of the outstanding shares. Over the past 52 weeks, the stock has traded between $9.70 and $15.10. A stop-loss of $11.25 looks good here. Note that the firm is expected to report Q3 results in early May.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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