Symmetry Medical (NYSE: SMA) makes implants and related instruments for orthopedic device manufacturers, primarily in the United States and the United Kingdom. Its devices are used in reconstructive surgeries to replace or repair hips, knees, shoulders, ankles and elbows. The company also designs, develops and produces products for companies in other segments of the medical device market, including arthroscopy, dentistry, laparoscopy and endoscopy. As a sideline, the firm manufactures aerofoils and aircraft engine parts for a few aerospace customers.

Symmetry pleased the Street earlier in the week, when it announced Q1 EPS of 20 cents and revenues of $101.9 million. Analysts had been expecting 14 cents and $88.4 million. The CEO attributed success to increased demand across the orthopedic market and the effects of recent acquisitions. Management also guided FY08 EPS to 75-77 cents (72 cent consensus) and FY08 revenues to $395-$405 million ($359.21M consensus).

The SMA price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags 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 "strong buys" and three "holds". Analysts see a 41% growth rate, through the next year. The SMA Price to Sales ratio (1.73), Price to Book ratio (2.31), Sales Growth rate (57.45%) and EPS Growth rate (300.00%) 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 $12.40 and $19.22. A stop-loss of $14.10 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.