AZZ incorporated (NYSE: AZZ) makes electrical products that distribute power to and from generators, transformers, switching devices, and other electrical configurations. It also offers lighting products for the petroleum, food processing, and power generation industries. Its Galvanizing Services segment provides hot dip galvanizing to the steel fabrication industry. Competitors include General Electric (NYSE: GE) and Eaton Corporation (NYSE: ETN).

The company pleased investors late last month, when it reported fiscal Q1 EPS of 82 cents and revenues of $100.0 million. Analysts had been expecting 54 cents and $90.1 million. Incoming first quarter orders set a company record of $106.9 million. The book to ship ratio came in at 107%. Management also guided FY09 EPS to $2.95-$3.05 ($2.43 consensus) and FY09 revenues to $410-$425 million ($400.04M consensus).

The stock popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices 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 one "strong buy", one "buy" and one "hold". The AZZ P/E ratio (14.96), Price to Sales ratio (1.44), Price to Book ratio (3.16), Sales Growth rate (32.61%), EPS Growth rate (141.18%), Return on Assets (13.12%), Return on Investment (16.22%) and Return on Equity (24.25%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 94% of the outstanding shares. Over the past 52 weeks, the stock has traded between $24.18 and $44.93. A stop-loss of $36.95 looks good here.

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.