CIRCOR International (NYSE: CIR) makes
valves, pipe fittings and controls for instrumentation, aerospace, cryogenic and steam applications. It also provides values, regulators, and pipeline closures for use in the oil, gas and chemical processing industries. The company sells its products through a direct sales force and commissioned representatives, in about 130 countries.
The firm pleased investors last week, when it boosted its Q2 EPS guidance from 74-83 cents to $1.04-$1.10. Analysts had been looking for 80 cents. In discussing the positive view, the CEO emphasized strong revenue growth and margins in the firm's Energy segment.
CIR shares
popped through 30-day and 50-day moving average resistance on the news and then began defining a bullish "flag" consolidation pattern. Prices 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 one "strong buy" and five "holds". Analysts expect a 27% average annual growth rate, through the next five years. The CIR PEG ratio (0.70), Price to Sales ratio (1.19), Price to Book ratio (1.81), Price to Free Cash Flow ratio (18.98) and EPS Growth rate (68.89%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 88% of the outstanding shares. Over the past 52 weeks, the stock has traded between $35.48 and $62.70. A stop-loss of $53.95 looks good here. Note that the firm is expected to report Q2 results on July 30th, after the close.
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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