Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerPall Corporation (NYSE: PLL) manufactures
filtration and separation systems that remove solid, liquid, and gaseous contaminants from a variety of materials. Pall's Industrial segment sells filters, coalescers, and separation units for hydraulic, fuel, and lubrication systems; filters for use in commercial and military aircraft; and disposable filtration products used by producers of semiconductors, fiber optics products, disk drives and photographic film. The Life Sciences unit provides products used in drug discovery, gene manipulation, and proteomics applications.
The firm pleased investors last week, when it announced fiscal Q1 EPS of 54 cents and revenues of $661.7 million. Analysts had been expecting 50 cents and $633.5 million. The CEO noted that sales growth was broadly-based across markets and geographies.
The PLL share
price popped on the news and then moved into a bullish "pennant" consolidation 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 two "strong buys", one "buy" and four "holds". Analysts see an 18% growth rate, through the next year. The PLL Price to Sales ratio (2.04), Sales Growth rate (18.31%), EPS Growth rate (27.50%) and Operating Margin (12.56%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 92% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past twelve months, it has traded between $33.37 and $49.00. A stop-loss of $37.50 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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