Neenah Paper, Inc. – Aggressive Growth |
Neenah Paper, Inc. (NP) has seen big gains over the last year, currently lingering directly below its recent 52-week high at $23.75. With an average earnings surprise of 31% over the last four quarters and estimates on the rise, this Zacks #1 stock is a solid pick for growth.
Company Description
Neenah Paper, Inc., together with its subsidiaries, produces and sells fine papers and various technical paper products worldwide. The company was founded in 2004 and has a market cap of $324 million.
As a small capper with a strong earnings growth, NP has seen big gains over the last year, with shares more than doubling from $10 to $23. That strong growth was on display in early May when the company reported another strong quarter that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 3% from last year to $173 million. Earnings also came in strong at 54 cents, 29% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 31% over the last four quarters.
Neenah's larger segment, Technical Products, saw a solid 8% increase in sales to $105 million while sales in Fine Paper fell 3% to $67 million.
Financial Profile
The company has also been focused on strengthening its balance sheet, with total debt falling $32 million from last year to $215 million.
Estimates
We saw some pretty solid movement in estimates off the good quarter, with the current year adding 20 cents to $1.85. The next-year estimate is pegged at $2.08, a solid 12% growth projection.
Valuation
But in spite of recent gains, the valuation picture still looks solid, with a PEG ratio of .96, safely below the benchmark for value of 1.
12-Month Chart
On the chart, NP continues to linger below its recent 52-week high after rebounding from a trend line in the strong market. Take a look below.
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