On June 7, 2013, shares of
Precision Castparts Corp.
) hit a new 52-week high of $219.42 with 862456 shares traded,
beating its previous high of $218.85 attained on May 31. The
average volume traded during the last three months totaled
The company's current forward P/E ratio is 17.96, which is
above the S&P 500 companies' P/E ratio of 15.00. The shares
are currently trading at 218.38 as of closing on June 7, with a
year-to-date return of 13.6%.
Let's try to gauge the factors that propelled the stock to its
current 52-week high.
Precision has a proven track record of increasing market share
through acquisitions and developing new growth opportunities. The
company is expected to benefit from the strong free cash flow and
enormous funds available that will its boost organic.
Precision experienced significant growth in its Aerospace and
Forged products in 2013. Currently, the aerospace market looks
promising and is expected to grow in the near future. Also,
demand in industrial gas turbine (IGT) looks encouraging. The
company's new product, Boeing 787 is also beginning to gain
traction. The company is continually focusing on expanding its
product lines and markets.
Moreover, the company completed eight acquisitions in fiscal
2012. These acquisitions contributed approximately $400 million
to sales in the previous fiscal. With improved sales and strong
market position based on global diversity, Precision is poised to
Given management's stellar acquisition track record, new
product line and robust free cash flow generation, investors can
look forward to improved results in fourth quarter in fiscal 2013
Other Stocks to Consider
Presently Precision has a Zacks Rank #2 (Buy). Some other
companies in the industry worth considering at the moment include
), which has a Zacks Rank #1 (Strong Buy), and
Norsk Hydro ASA
Northwest Pipe Co.
) both having a Zacks Rank #2 (Buy) each.
NORSK HYDRO ADR (NHYDY): Get Free Report
NSK LTD -UN ADR (NPSKY): Get Free Report
NORTHWEST PIPE (NWPX): Free Stock Analysis
PRECISION CASTP (PCP): Free Stock Analysis
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