An article in the latest issue of Barrons profiled the Lord Abbett Small-Cap Value fund, describing its investment philosophy and listing several stocks, including PCP, that have a prominent place in its portfolio. Since the Napeague Letter researches undervalued small-cap stocks, a thumbnail analysis of each of these stocks was included in its most recent issue:
Precision Castparts Corp. (NYSE:PCP) is a worldwide manufacturer of complex metal components and products, including complex structural investment castings, as well as airfoil investment castings used in jet aircraft engines.
Earlier this year, PCP was also on Napeague's internal "A list" of stocks that appear to be significantly undervalued, although both its revenues and earnings had been somewhat inconsistent over the last several years. However, a major move from the $13.00 level at the beginning of March to its closing price of $37.69 on November 24th erased almost all of its undervaluation.
Ten analysts follow the Company today, and their recommendations are almost evenly divided across the top three opinion categories. The valuation tools used by Napeague indicate that the stock may be slightly undervalued, as it could justify a price in the $45.00 area. Technically, the stock's charts are sending out ambiguous signals, probably as a result of the large amount of "background noise" right now.
If you would like to see all of these analyses, you can find the URL for The Napeague Letter by clicking on the blue "Bob Davis" at the top of this post. |
