TriMas Corp. - Aggressive Growth

TriMas Corp. (TRS) continues its impressive run of earnings surprises and analysts continue to increase estimates after the company released bullish guidance.

This Zacks #1 Rank (Strong Buy) is also trading with great valuations, even as it pressures the 52-week high.

Company Description

TriMas makes engineered and applied products for a variety of industries. The company is broken down into 5 segments; Packaging, Energy, Aerospace & Defense, Engineered Components and Cequent (recreational products).

Another Surprise

Since being featured as a Zacks Rank Buy in July, TriMas has reported 2 more earnings surprises, bringing the streak to 6. The latest quarterly report came on Oct 28.

Earnings per share came in at 37 cents, beating the estimates by 7 cents. Sales were up 22% to nearly $248 million during the quarter, credited to economic improvements as well as growth initiatives.

Optimistic Outlook

Given the strong quarterly performance, management raised its full-year outlook. TriMas expects to more than double EPS, from $0.43 to between $1.05 and $1.10.

Analysts agree and have pushed the Zacks Consensus Estimate to the high end of that range. Forecasts are calling for $1.10 on average, up 6 cents on the earnings news. Next year's estimates are up 8 cents, to $1.34.

If TriMas hits these projections the annual growth rates will be 156% and 22%, respectively.

A Good Value as Well

Shares of TRS are trading at 12 times the 2011 consensus estimate and with a PEG ratio of only 0.8. TriMas has the best price-to-sales ratio in its peer group, at 0.61 times.

Speaking of peers, the company stacks up very well next to its competitors. The company has an ROE of over 47%, compared to the 7.2% the industry averages.

The Chart

There was some profit taking on the earnings news, but shares quickly bounced back. If they can push past the 52-week high, the bullish trend should continue.

Read the July 13th Feature Here

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

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