National Beverage Corp - Momentum

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Posted: Sep 15, 2011 12:01 AM
National Beverage Corp (FIZZ) has been a steady player in the weak market, recently hitting a new 52-week high on another strong quarter. With estimates on the rise and a high industry rank this Zacks #1 Rank stock is bubbling with momentum.

Company Description

National Beverage Corp, together with its subsidiaries, develops, sells and distributes a line of beverage products in the United States. The company was founded in 1985 and has a market cap of $739 million.

FIZZ has been a steady player over the last few months in a very volatile market, supported by strong Q2 results from mid July that included big gains from last year.

Second-Quarter Results

Revenue for the period was up marginally from last year to $152 million. Net income was up 20% from last year to $11 million, producing earnings of 24 cents per share.

Financial Profile

National Beverage also continues to maintain a strong balance sheet, with cash and short-term investments of $21 million and total debt of just $18 million.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 5% to 97 cents. The next-year estimate is pegged at $1.05, a solid 8% growth projection.

Valuation

But in spite of the gains FIZZ still looks reasonably priced, trading with a forward P/E of 16X, a discount to its peer average of 20X.

12-Month Chart

On the chart, FIZZ has been steady in the choppy market, recently hitting a new 52-week high. Look for support from the trend line on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
 
NATL BEVERAGE (FIZZ): Free Stock Analysis Report
 
Zacks Investment Research


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