) has a good long term earnings picture and the stock is a Zacks #1
Rank (Strong Buy).
Team, Inc. provides specialty maintenance and construction services
for maintaining high temperature and high pressure piping systems
and vessels that are utilized in heavy industries.
Analysts see Earnings Improving
The Zacks Consensus Estimate for 2012 has been on the move, and
moving the direction we like to see. In April of 2011, analysts
were expecting earnings of $1.45, but since that time, estimates
have moved higher to $1.68. Within the last month, the Zacks
Consensus Estimate has moved up $0.07, a further sign of strength.
The story for 2013 is very similar to 2012. In June of 2011, the
Zacks Consensus Estimate was $1.71, but has since moved to $1.92.
This underscores the idea of consistent earnings growth that Zacks
#1 Ranks (Strong Buy) typically exhibit.
Recent Earnings Release
At the beginning of the year, the company reported earnings of
$0.53, topping the Zacks Consensus Estimate of $0.49 by $0.04. The
8% earnings beat translated into a 3% move in the stock. Revenue
also came in ahead of expectations at $158 million, topping the
estimate of 5 analysts by $3 million.
TISI trades a premium to the industry in term of price to earnings.
For trailing twelve months, the premium is a small 2 point
difference, but the forward multiple is a little more "rich" with
TISI trading at 17x while the industry average multiple trades at
Other metrics like price to book and EV/EBITDA show TISI trading
very close to industry averages. The difference that encourages us
to name TISI a good candidate for aggressive growth investors is
the price to sales multiple. Trading at a significant discount to
the industry average of 2.1x sales, TISI trades at only 1x sales.
Future sales growth should help expand that multiple and should, as
a result, increase the price of the stock.
TISI is a Zacks #1 Rank (Strong Buy) which seen earnings
expectations continue to rise. A look at the price and consensus
chart shows that expectations have been moving higher and higher.
We anticipate that the stock will do the same with a few more
positive earnings surprises.
Brian Bolan is the Aggressive Growth Stock Strategist for
Zacks.com. He is also the Editor in charge of the
Run Investor service
TEAM INC (
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