Why American Vanguard's Shares Popped Today

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty chemicals maker American Vanguard jumped 10% today after reporting earnings.

So what: Sales rose 8% to $97.2 million in the third quarter and net income jumped 10% to $8.9 million. Both figures were ahead of estimates with earnings per share of $0.31 was two cents ahead of estimates.  

Now what: Industry trends are helping grow sales and a partnership with Monsanto to market Impact herbicide is paying dividends. Management expects future growth to be strong given the company's new product lines. This wasn't a crushing earnings beat but with shares trading at 15 times forward estimates and industry trends remaining strong I think there's still room to run, especially if shares pull back in coming days.

More international growth stocks
American Vanguard is benefiting from an increasingly global crop market, which is helping a lot of American companies. In fact, profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it's gone.

The article Why American Vanguard's Shares Popped Today originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading