Today Upside Analyst Richard Moroney recommends a pure growth stock with strong momentum and improving profit margins, appropriate for all growth investors. His new recommendation is followed by a sell alert on one of his recent doublers.
Coleman Cable (CCIX)
Coleman Cable (CCIX) makes wire and cable products for construction, industrial and consumer applications. The company seems well positioned for an improving economy given its diverse and growing client base of more than 8,000 customers. A recovery in residential housing and construction bodes well for growth, while improved cost controls and favorable pricing should bolster profit margins. Product launches and acquisitions should help drive sales and earnings growth.
Scoring above 80 in five of the six Quadrix categories, Coleman earns an Overall score of 98, versus an average of 46 for the 50 stocks in its industry group. Coleman is expected to announce June-quarter results on August 8. The consensus of three analyst estimates calls for earnings per share to dip 7% to $0.43 on a 2% sales decline. For 2013, per-share profits are expected to climb 14% to $1.68 on sales growth of 3%. Coleman is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, August 5, 2013