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Stock Report on Precision Castparts Corp (NYSE:PCP)

June 15
08:40 2015

[Barron’s] Precision Castparts Corp (NYSE:PCP)(TREND ANALYSIS) is one of the great U.S. enterprises, lauded for excellent management, steady growth, and persistently wide profit margins. The share performance of the industrial manufacturer has been stellar at times: From 2000 to 2014, it was the seventh-best performer in the Standard & Poor’s 500, besting Apple and 492 other companies, with a 3,646% return.

Now, however, a steep decline in the Portland, Ore., company’s stock (ticker: PCP) has created a rare opportunity for long-term investors.

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Precision Castparts Corp (NYSE:PCP) stock is currently trading 22.31% below its 52-week-high, 11.67% above its 52-week-low. The 1-year stock price history is in the range of $186.17 – $267.6. Precision Castparts Corp (PCP) has a price to earnings ratio of 19.49 versus Industrial Goods sector average of 28.37. PCP stock price has underperformed the S&P 500 by 16.6%. The Metal Processing & Fabrication company is currently valued at $28.74 billion and its share price closed the last trading session at $207.9. The stock has a 50-day moving average of $211.15 and a 200-day moving average of $216.28.

Precision Castparts Corp (PCP) current short interest stands at 3.15 million shares. It has increased by 8% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 0.84 million shares, the number of days required to cover the short positions stand at 3.8 days.

The company is expected to announce next quarter earnings on July 23, at consensus estimate of $3.09. Precision Castparts Corp (PCP) reported last quarter earnings on May 13. The Metal Processing & Fabrication company announced earnings per share of $2.94 against a consensus Street estimate of $2.97, missing estimate by $0.03. This corresponds to a decrease of $0.3 compared to the same quarter of the previous fiscal year.

Is this a Buying Opportunity? Click here for a free Trend Analysis Report

There are currently twenty-one analysts that cover Precision Castparts Corp stock. Of those twenty-one, ten have a Buy rating, eleven have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $229.56.

A recent analyst activity consisted of Barclays reiterating their Overweight stance on May 14. Barclays decreased price target from $230 to $225. This corresponds to a 8.23% upside from the last closing price. On the date of report, the stock closed at $207.58.

RBC Capital reiterated their Outperform stance on April 20, and decreased their price target from $240 to $232. This corresponds to a 11.59% upside from the last closing price. On the date of report, the stock closed at $203.87.

Another research firm was Citigroup who reiterated their Buy stance on April 16. Citigroup decreased price target from $241 to $240. This translates to a 15.44% upside from the last closing price. On the date of report, the stock closed at $204.73.

Company profile

Precision Castparts Corp. is a worldwide manufacturer of complex metal components and products, providing investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine (“IGT”) applications. The Company also provides seamless pipes, specialty alloys, grinder pumps, critical auxiliary equipment, and metalworking tools.

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About Author

Jarrod Wells

Jarrod Wells

Jarrod Wells is a senior analyst covering Pharma and BioTech companies. Prior to joining Markets Wired in 2013, Jarrod spent 3 years at UBS focused largely on the Energy sector.

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