Pall filter out earnings

As both the industrial economy and health care industry come out of the recession Pall Corp (PLL) should be in both of their capital expenditure budgets They are a leading supplier of fine filters, principally made by the Company using its proprietary filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a wide variety of liquids and gases. They serve customers in two distinct businesses: Health Care and Industrial. These businesses include the following major markets: BioPharmaceuticals and Medical and Aeropower and Fluid Processing.

The stock has enjoyed a price increase of 8.59% in the last month earning it a 100% Barchart technical buy signal.  The price was up in 10 of the last 20 trading sessions and currently trades around 48.68 which is 11.19% above its 50 day moving average of  43.78.  The Relative Strength Index is 74.95% and rising.

Wall Street analysts look for revenue growth of 6.00% this year and 5.90% next year but a lot of that will fall to the bottom line.  Earnings per share are expected to increase 16.50% this year, 13.80% next year and continue for 5 years at an annual rate of 11.65%.  These double digit EPS figures earned it 4 buy and 8 hold reports from the analysts for the brokers to push.

The general investing public likes this stock too with the CAPS members on Motley Fools thinking the stock will beat the market by a vote of 125 to 19 in agreement with the All Stars vote of 44 to 6.  Fool notes that the last 11 articles about the stock by Wall Street columnists have been positive.

Take notice of the recent price momentum and:

• 100% Barchart technical buy signal
• Relative Strength Index of 74.95% and rising
• Wall Street brokerage analysts predicting double digit earnings growth for at least 5 years
• Positive investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.