) reported record fourth quarter sales and earnings but the good
times aren't over yet. This Zacks #1 Rank (Strong Buy) is expected
to grow earnings by the double digits again in 2012. It also has
the distinction of being a value stock, with a forward P/E of just
Jarden manufactures niche consumer products in three main business
segments: Branded Consumables, Consumer Solutions, and Outdoor
Some of the company's famous brands include Rawlings, Crock-Pot,
Mr. Coffee, Seal-a-Meal, and First Alert.
Record Fourth Quarter Results
On Feb 15, Jarden reported record fourth quarter results. The
company blew by the Zacks Consensus Estimate, again. Earnings per
share were 96 cents compared to the consensus of 92 cents.
It kept intact an impressive earnings surprise streak. The company
has only missed one time in the last 5 years and that was all the
way back in 2007.
Sales rose 3% to a record $1.74 billion from $1.68 billion a year
ago. For the year, sales jumped 11% to $6.7 billion from $6 billion
"Coming out of the recession, Jarden has achieved organic net sales
growth of over 3% on a trailing twelve month basis for six
consecutive quarters in an extremely difficult economic and
unpredictable weather environment," said James E. Lillie, CEO.
The 2012 Zacks Consensus Estimate Jumps
Jarden is hoping to build on its momentum in 2012. The analysts
clearly believe it can do so as the 2012 Zacks Consensus Estimate
rose to $4.07 from $3.77 in just the last week.
That is further earnings growth in 2012 of 18.5%.
A Cheap Stock
Jarden shares have rallied along with the overall markets. Shares
are at 2-year highs.
Yet, there's still plenty of value to be found.
In addition to a P/E under 10, the company has a price-to-book
ratio of just 1.9. A P/B ratio under 3.0 usually indicates value.
Jarden also has a low price-to-sales ratio of just 0.5. A P/S ratio
under 1.0 can mean a company is undervalued. By comparison, the
average P/S ratio for the S&P 500 is 1.9.
Jarden has other solid fundamentals as well, including a return on
equity (ROE) of 16%.
The company rewards shareholders with a dividend currently yielding
Jarden is capitalizing on its well-known brands and the global
recovery to grow its earnings by the double digits. Investors get
both growth and value with this company.
Tracey Ryniec is the Value Stock Strategist for
. She is also the Editor of the Turnaround Trader and Insider
Trader services. You can follow her on twitter at
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