Vishay Intertechnology, Inc. (VSH) analysts are expecting exponential growth this year, yet shares remain a great value.
Company Description
Vishay Intertechnology makes discrete semiconductors and other electronic components. The company’s products are used in many industries including telecom, aerospace, medical, and industrial.
Beat the Street
On Feb 8 Vishay Intertechnology reported a 5.5% increase in revenues for the fourth quarter of 2009. This led to net income of $28.5 million, or 17 cents per share.
Estimates for the Zacks #1 Rank stock were averaging 12 cents heading into the report.
Bullish Outlook
Vishay Intertechnology is expecting between $630 and $670 million in revenue next year. The company also made statements that reflected high expectations for 2010. However, the company also said they will not hesitate to return to their defensive posture, should we see another down turn.
Estimates Pop
Over the past 3 months the Zacks Consensus Estimate for 2010 is up 37 cents to 86 cents. Next year’s forecasts average $1.00, up 28 cents.
Compare these levels to an EPS of just 2 cents for 2009. The growth rate is exponential.
The Chart
Despite such a rapid increase in share price, the valuations on VSH remain enticing. The forward P/E is less than 13 times and the PEG ratio is near 1.0. Vishay’s price to book is just 1.3 times.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research
