HWCC Houston Wire and Cable Company

Universal Stainless & Alloy Products Inc. (USAP) was once again the top performing Zacks #1 Rank (Strong Buy) stock. After jumping 10.2% on Tuesday following the company announcement of an agreement to purchase assets of Patriot Special for up to $130 million, the stock climbed 5.4%.

On Wednesday, management provided updated guidance for the second quarter of 2011. The company stated that it expects to earn between 75 cents and 85 cents per share, well ahead of the Zacks Consensus Estimate of 73 cents. If it delivers, this would mark the company's 7th consecutive positive earnings surprise.

Expect analysts to revise their estimates higher over the next couple of days. Based on current consensus estimates, it looks like strong growth is on the horizon. The 2011 Zacks Consensus Estimate is $2.83, corresponding to 47% growth over 2010 EPS. The 2012 consensus estimate is 25% higher at $3.54.

Despite this stellar projected growth, shares trade at just 11.5x forward earnings.

Universal Stainless & Alloy Products Inc. is a mini-mill that manufactures and markets semi-finished specialty steels, including stainless steel, tool steels and other alloy steels. It is headquartered in Bridgeville, Pennsylvania and has a market cap of $235 million.

Houston Wire & Cable Company (HWCC) was also on the move Thursday, rising 5.1%.

Consensus estimates surged higher for both 2011 and 2012 after the company reported record revenues for the first quarter of 2011. Organic sales rose 34.5% while the gross margin expanded 190 basis points. This drove EPS 170% higher over the same quarter in 2010.

Analysts are projecting the huge growth to continue throughout 2011. The 2011 Zacks Consensus Estimate is $1.07, representing 118% growth over 2010 EPS. The 2012 consensus estimate is 19% higher at $1.27.

The company also pays a dividend that yields 2.5%.

Shares trade at just 13.3x forward earnings, in-line with the industry average. Its PEG ratio is an attractive 0.9 based on a 5-year projected growth rate of 15.0%.

Other notable top performing Zacks #1 Rank stocks from Thursday include: China Distance Education Holdings Limited (DL), which jumped 5.7%, Crocs, Inc. (CROX), which rose 4.6%, and The Standard Register Company (SR), which was up 4.6%.

To see the full list of Zacks #1 Rank (Strong Buy) stocks click here.

Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.

 
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