Stock Buy: Ingram Micro Inc.

Zacks Investment Research
updated | Zacks.com

Ingram Micro Inc. (NYSE:IM) continued its solid earnings trend, which sent estimates higher as shares are pressuring the 52-week high.

Company Description

Ingram Micro creates IT products and supply chain solutions. Products include printers, software, storage, computers and much more.

Topped Estimates

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.

Esimates Rising

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.

Valuations

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.

The Chart

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.

A chart for Ingram Micro

You may also like: