Cooper Tire & Rubber Co. (CTB) shares set a new 52-week high after its latest quarterly release. Sales, estimates and the outlook are all improving.
Company Description
Cooper Tire & Rubber Co. makes tires for motorcycles, trucks and everything in between. The Ohio-based company has locations in 10 countries, including Europe and Asia.
Sales Jump 32%
On May 5 Cooper Tire reported quarterly sales of $754 million, up $183 since the same period last year. The company said higher volumes and a bump in manufacturing utilization helped offset lower prices.
Earnings per share came in at 20 cents, beating the Zacks Consensus Estimate by 6 cents. This quarter marked Cooper Tire’s sixth consecutive earnings surprise.
While management remains “cautiously optimistic” due to input costs, they commented that industry conditions are improving and the company is well positioned for growth.
Rising Estimates
Cooper Tire analysts raised their estimates on the earnings news. The full-year consensus for 2010 is up 28 cents, to $2.38 for the Zacks #1 Ranked (Strong Buy) stock.
Next year’s forecasts are averaging $2.45, a 21 cents increase. These levels are projecting growth rates of 21% and 3%, respectively.
Good Valuations
Despite a surging stock price, shares of CTB have nice valuations. The forward P/E is in the single digits and the PEG ratios is less than 1.
The price-to-book of 2.8 may scare away some traditional value investors, but the price-to-sales of 0.4 is attractive.
The Chart
Shares of CTB are getting have been volatile lately, but over all the trend looks good. Shares are pressuring the recently set 52-week high and given the valuations and trend they could be able to break though.
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