Aggressive Growth: UFP Technologies (UFPT)

UFP Technologies, Inc. (UFPT) beat expectations yet again last quarter, setting a company sales record. Estimates are on the rise and are projecting solid growth rates.

In addition, this Zacks #1 Rank (Strong Buy) is trading with attractive valuations.

Company Description

UFP Technologies makes protective packaging of fabricated foams, plastics and other materials. Customers are in the medical, auto, electronics and other markets.

Estimates Even Higher

UFP Tech was featured back in early September and since then the outlook is even more bullish. While we only have one analyst that submits estimates, that forecast is up another 16 cents, to $1.28.

Next year’s projection rose 17 cents, to $1.38. Given the 86 cents earned in 2009 the annual growth rates are expected to be 49% and 8%, respectively.

Beat the Street

Estimates jumped thanks to UFP Tech’s fifth consecutive earnings surprise. Net income came in at $2.4 million, up from $2.1 million a year ago. Earnings broke down to 35 cents per share, which was 12 cents better than expected.

Sales hit a record-high $30.5 million after rising over 10% from the third quarter in 2009.

It didn’t stop there either. The CEO had plenty of good things to say about the future for UFP Tech. “Looking ahead, we see exciting opportunities for internal growth through new products, new markets and new materials.”

And a Value to Boot

Shares of UFPT are trading with P/E ratios in the single digits. The price to sales is coming in at 0.6, a nice bargain as well.

The Chart

While it has been a bumpy ride, shares of UFPT have been working their way higher. There was some profit taking after the recent 52-week high but with the estimates climbing, the stock price should be back on the upswing soon.

Read the November 3rd Feature Here

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About Bill Wilton 56 Articles

Affiliation: Zacks Investment Research

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service.

Visit: Zacks Investment Research

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