Markets

Is This the Right Time to Buy Willdan Group (WLDN) Stock? - Analyst Blog

An image of some people shaking hands
Credit: Shutterstock photo

Zacks Investment Research upgraded Willdan Group, Inc. ( WLDN ) to a Zacks Rank #1 (Strong Buy) on Sep 9.

Why the Upgrade?

This professional technical and consulting services provider has reported better-than-expected results for second-quarter fiscal 2014, leading to positive estimate revisions for the company.

Willdan reported earnings of 25 cents per share on Aug 7 which easily surpassed the Zacks Consensus Estimate of 14 cents by 78.6%. Further, the bottom line rose nearly threefold from the prior-year quarter figure of 9 cents. The company also reported a year over year increase of 31.6% to $27.0 million in its total contract revenues.

The company's strong fundamentals, along with a persistent focus to expand its service offerings and geographical presence, acted as growth drivers. Apart from this, improved economic environment was also a positive for Willdan in the quarter.

The positive estimate revisions over the last 30 days raised the Zacks Consensus Estimate for 2014 and 2015. For 2014, it increased 18.8% to 76 cents, while surging a robust 51.7% to 91 cents for 2015.

Moreover, the company announced that its subsidiary - Willdan Energy Solutions - has received a $22.3 million contract modification from Con Edison. Per this deal, the earlier Small Business Direct Install (SBDI) contract has now been extended to include a number of Con Edison's customers, increasing the total contract value to $61.3 million.

Other Stocks to Consider

Some other worth considering stocks in the same sector include VSE Corp. ( VSEC ), AO Smith Corp ( AOS ) and North American Palladium Ltd. ( PAL ). All three stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SMITH (AO) CORP (AOS): Free Stock Analysis Report

WILLDAN GROUP (WLDN): Get Free Report

VSE CORP (VSEC): Free Stock Analysis Report

NORTH AM PALLAD (PAL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VSEC WLDN AOS

Other Topics

Stocks