In today’s Daily Alert Upside Editor Richard Moroney recommends a chemical company with excellent earnings growth and stock price momentum.
“American Pacific Corp. (APFC, Nasdaq), a leading maker of specialty chemicals, is leveraged to the pharmaceutical industry and new drug approvals. The company’s ingredients are typically used by drugmakers focused on three attractive areas: viruses, cancer and the central nervous system. American Pacific also sells specialty chemicals used in rocket and missile engines, fire-protection gear and watertreatment equipment.
“American Pacific earns an Overall score of 99, ranking near the top 1% of our research universe of more than 4,600 companies. Shares score 80 or higher for Momentum, Value, Quality and Earnings Estimates — a rare combination offered by only 16 stocks.
“For fiscal 2013 ending September, the single-analyst estimate calls for per-share earnings of $2.36, up from $1.32 a year earlier. For fiscal 2014, the analyst targets per-share earnings of $2.49, revised upward from $2.18 two months ago. Shares have advanced 80% this year but still trade at a reasonable 12 times estimated 2013 earnings. American Pacific is being initiated as a Buy.”
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, 7/1/13