Stock Buy: Ingram Micro Inc.
Ingram Micro Inc. (NYSE:IM) continued its solid earnings trend, which sent estimates higher as shares are pressuring the 52-week high.
Ingram Micro creates IT products and supply chain solutions. Products include printers, software, storage, computers and much more.
On Feb 18 Ingram Micro reported fourth-quarter sales of $8.8 billion, up 1% year-over-year due to favorable currency movements. Net income came in at $107 million, up from a loss of $564 million last year.
Earnings per share came in at 61 cents, beating expectations by 9 cents. This was the second surprise in a row, and sixth in the last 7 quarters.
Since the earnings release, Ingram analysts have been raising full-year forecasts. The Zacks Consensus Estimate for 2010 is now $1.64, up from $1.52. Next years estimates are averaging $1.91, up from $1.75. These levels represent earnings growth of 22% and 17%, respectively.
Shares of IM are trading at a good value as well, with a forward P/E of 11 times. The growth is price well, as the stock has a PEG ratio of 0.8 times.
Heading into the earnings release, shares of IM had been a bit volatile. The stock is still under the 52-week high, but could put some pressure on that level on strong volume. Take a look below.