On Jan 14, 2014, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). The company's efforts to
broaden the product portfolio through strategic distribution
agreements with different manufacturers and long-term expected
earnings growth rate of 13.35% make it an attractive investment
Why the Upgrade?
Ingram Micro has been striking distribution deals with a
number of original equipment manufactures thus expanding its
product portfolio. Leveraging these agreements, the company had
posted a 12.4% year-over-year increase in the previous
We believe that the improving IT spending trend will help
Ingram to post better results, going forward. Moreover, the
company's focus on the high-margin market and strategic
acquisitions to grow market share are encouraging. The
Brightpoint acquisition is also expected to remain a key growth
driver for the company.
Moreover, Ingram Micro's exposure in cloud computing products
should also work in its favor. We believe that the cost benefits
of cloud computing are pushing different companies toward massive
information technology restructuring and upgrades. This is one of
the reasons that small and medium sized businesses have been
investing in the area despite the economic weakness that has led
to a slump in overall IT spending.
Apart from this, Ingram Micro has a strong track record of
beating the Zacks Consensus Estimate. The company posted an
average positive earnings surprise of 15.07% over the past four
quarters. The current quarter and the fiscal-year estimates stand
at 80 cents and $2.28 per share, representing respective
year-over-year increases of 9.0% and 16.85%. It is worth noting
that the fiscal-year earnings expectation is higher than the
company's long-term earnings growth expectation of 13.35%.
These factors culminated to the Zacks Rank upgrade on Ingram
Micro's shares. Apart from Ingram Micro, investors can also
consider stocks such as
). All these stocks sport the same Zacks Rank as Ingram
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