) touched a new 52-week high of $20.48 during its trading session
on Dec 2. This denotes an increase over the previous high of
$20.09 reached on Nov 29.
NN Inc. closed the trading day on Dec 2 at $19.59, reflecting a
solid year-to-date return of 109.7%. The trading volume for the
session was 0.20 million shares. Further upside potential exists
for this Zacks Rank #1 (Strong Buy) machine tool and accessories
maker, as can be deduced from its earnings estimate revisions for
2013 and 2014.
NN Inc. reported impressive third quarter 2013 results on Nov 6,
2013 that sent its share price spiraling up 14.0%. Earnings per
share in the quarter were 29 cents, up 31.8% above the year-ago
earnings of 22 cents. The results were 3.6% above the Zacks
Consensus Estimate of 28 cents.
Revenues grew 7.4% year over year on the back of improved demand
in the automotive markets of North America and Asia, as well as
the heavy truck markets of Europe. However, the growth in the
quarter was restricted by weak demand from the European
automotive and industrial market.
Operating income in the quarter grew 31.7% year over year while
margin stood at 8.4%, up 160 basis points year over year.
Moreover, NN Inc. follows a consistent policy of rewarding its
shareholders through dividend payments, having returned roughly
$2.1 million through dividend payments. The quarterly rate stands
at 6 cents, to be paid on Dec 20 to shareholders of record as on
For the quarters ahead, management of NN Inc. intends to drive
growth through organic and inorganic investments.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for NN Inc.
has increased by 3.0% to $1.04 for 2013 and 5.9% for 2014. The
estimate for year 2014 represents year-over-year growth of 21.2%.
NN Inc. currently has a market capitalization of $341.9 million.
Other players in the machine tools and accessories industry which
look attractive at current levels include
CIRCOR International, Inc.
Dynamic Materials Corp.
). All these stocks carry the same Zacks Rank #1 (Strong Buy) as
DYNAMIC MATLS (BOOM): Free Stock Analysis
CIRCOR INTL (CIR): Free Stock Analysis Report
NN INC (NNBR): Free Stock Analysis Report
NSK LTD -UN ADR (NPSKY): Get Free Report
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