Carriage Services (CSV), based in Houston, provides death care services in the U.S. operating 183 funeral homes in 29 states and 29 cemeteries in 11 states, explains Leo Fasciocco, editor of Ticker Tape Digest.
Annual revenues are $329 million. The funeral homes provide traditional burial and cremation, and sells related merchandise, such as caskets and urns.
Its cemetery segment covers interment services, the rights to interment in cemetery sites and related cemetery merchandise, such as memorials and vaults. It serves suburban and rural market.
This year, analysts predict a 43% jump in CSV's earnings to $2.66 a share from the $1.86 the prior year.
Net for the third quarter should be up 16% to 59 cents a share from the 51 cents the prior year. The highest estimate is at 60 cents a share.
Looking out to the fourth quarter, net should rise 12% to 64 cents a share from the 57 cents the previous year. The stock has a price-earnings ratio of 14. That is attractive for value-growth investors.
Looking out to 2022, the Street predicts a 12% rise in net to $2.99 a share from the anticipated $2.66 this year. CSV topped the consensus estimate the past four quarters by 14 cents a share, 22 cents, 4 cents and 20 cents.
Technically, the stock has broken out from its two-month, cup-and-handle base. The breakout clears key resistance with a big pick up in volume. That is very bullish. CSV's 12-month performance shows the stock up 70% versus a 35% gain for the stock market. Its momentum indicator is strongly bullish.
CSV has a beta of 0.83 versus 1.00 for the stock market. So, the stock tends to be a slow mover. One must be patient. We are targeting the stock for a move to $46 within the next few months, or sooner. A protective stop can be placed near $37.90.