Lydall, Inc (LDL) is expected to see exponential growth this year, but that doesn’t mean you will pay an arm and a leg for this Zacks #1 Rank (Strong Buy).
Look for shares to breakout soon and start setting multi-year highs.
Company Description
Lydall manufactures specialty engineered products for the thermal and filtration markets worldwide.
Top Line Swells 32%
On Mar 1 Lydall announced its results for the fourth quarter and full year. Quarterly revenue jumped 32% over the past year, to $95.8 million. The gross margin improved slightly as well, leading to great earnings results.
Operating income came out to $2.0 million, up from a $1.6 million loss a year ago. Earnings per share broke down to $0.08, which was 6 cents better than analysts polled by Zacks were expecting.
Outlook Improving
Currently earnings are expected to increase over 800% this year, from $0.07 to $0.64 as the company continues to see demand ramping up. Next year’s forecast jumped 10 cents, to $0.85 which represents another 33% growth.
Fortunately, you can still this expected growth at a discount. The forward P/E ratio is just 14 times and the price-to-sales is only 0.47 times. Lydall’s price to book is a hair above 1.0.
The Chart
LDL is no stranger to volatility, as you can see below. But with that added risk comes the potential for big rewards. The stock is trading right near its multi-year high and has the potential for a big breakout.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service
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