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TriMas Corp (TRS): Zacks Rank Buy

Bill Wilton

TriMas Corp. (NasdaqGS:TRS - News) is a Zacks #1 Rank (Strong Buy) that just keeps getting better and better. Estimates were already climbing and that will certainly continue after yesterday's earnings surprise.

Shares are cheap thanks to the recent market weakness, so is this the time to pounce on TRS?

Company Description

TriMas makes engineered and applied products for a variety of industries including packaging aerospace & defense, and recreational products.

Estimates March Higher

While the revisions haven't been huge, the consensus estimate for 2011 continues to increase. Estimates are now averaging $1.57, a 26% growth rate.

Forecasts for next year are coming in at $1.90, a 21% growth rate. Fortunately, those growth rates are not going to cost you much. TRS is trading at less than 15 times forward estimates, which puts the PEG ratio at 0.8. A very nice value.

Just Beat

On Jul 28 the company reported earnings per share of $0.56, which was 6 cents higher than analysts, were looking for. Revenues were up 19% to just under $300 million on growth in each segment.

Given the earnings surprise and that the company raised guidance; you can expect those earnings estimates to keep on moving higher. This was the company's ninth consecutive earnings surprise.

M&A Activity

TriMas also announced that it was going to pay $27 million in cash for Innovative Molding, Inc, just under 1 times full-year revenue. The new acquisition will add new lining and manufacturing plastic bottles for the food industry.

Buy on the Dip?

Shares of TRS were down into the earnings report. The recent success led to plenty of profit taking in the recent weakness in stocks. So, with shares trading lower coupled with the earnings surprise, this could be a great time to pick up this Zacks #1 Rank.

Read the November 8th Feature Here

TriMas Corp. - ticker TRS >

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

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