On Jun 27, 2013,
Precision Castparts Corp.
) hit a new 52-week high of $226.94, beating its previous high of
$221.90 attained on Jun 18. Precision shares are currently
trading at $225.64 as of closing, reflecting a year-to-date
return of 16%.
Shares of this leading manufacturer of complex metal
components and products have been steadily riding high during the
last one year. Recently, the company reported its fourth quarter
2013 results with EPS of $2.82, surpassing the Zacks Consensus
Estimate of $2.77 by 1.8%. Quarterly earnings were up 22.1% year
over year from $2.31 in the fourth quarter of 2012.
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 boost its organic growth.
Precision experienced significant growth in its Aerospace and
Forged products divisions 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 for
The Boeing Company (
is also beginning to gain traction.
The company is continually focusing on expanding its product
lines and markets. Moreover, Precision completed eight
acquisitions in fiscal 2012, which contributed approximately $400
million to sales. With improved sales and a strong market
position based on global diversity, Precision is poised to grow
Other Stocks to Consider
Given management's stellar acquisition track record, new
product line and robust free cash flow generation, we have a high
conviction that any large deal or collection of smaller deals
will continue to be accretive. Hence investors can look forward
to improved results in coming quarter and continue holding the
Presently, Precision has a Zacks Rank #3 (Hold). Some other
companies of the same sector worth considering at the moment are
) which has a Zacks Rank #1 (Strong Buy), and
Norsk Hydro ASA
) has a Zacks Rank #2 (Buy) each.
BOEING CO (BA): Free Stock Analysis Report
NORSK HYDRO ADR (NHYDY): Get Free Report
NSK LTD -UN ADR (NPSKY): Get Free Report
PRECISION CASTP (PCP): Free Stock Analysis
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