Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Insteel Industries, Inc. (IIIN-N) is a manufacturer of steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh, concrete pipe reinforcement and standard welded wire reinforcement. Insteel has two wholly-owned subsidiaries: Insteel Wire Products Company, an operating subsidiary, and Intercontinental Metals Corporation, an inactive subsidiary.
IIIN has advanced more than 6 per cent in 2016 and is up 12 per cent over the past month.
Insteel earns high marks from the James O'Shaughnessy-based model for its price / sales ratio of 1.5 per cent, based on trailing 12-month sales.
The O'Shaughnessy Cornerstone Growth-inspired model also likes Insteel Industries' persistent earnings growth. Annual EPS before extraordinary items for the last five years (from earliest to the most recent fiscal year) were -0.02, 0.10, 0.64, 0.89 and 1.16.
The Martin Zweig-inspired model likes the company's P/E ratio of 17.68, based on trailing 12-month earnings, compared to a current market P/E of 14.00. It also earns a pass from the Zweig model for its positive earnings growth rate of 144.83 per cent in the current quarter.
Insteel earns high marks for profit margin from the Motley Fool-based model. IIIN's profit margin is 8.54 per cent, surpassing the metric's 7 per cent requirement. The model also likes IIIn's relative strength, which is an impressive 95.
The Validea Momentum Investor model favours IIIn's industry in terms of the number of companies within it with a relative strength above 80. Fourteen companies in IIIN's industry pass this threshold. The Momentum Investor model also likes the stock's current price level, which is within 15 per cent of its 52-week high.
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