Hurricane season has just officially begun, making this an opportune time for the latest "breakout" stock buy from technical expert Leo Fasciocco, editor of Ticker Tape Digest.
PGT Innovations (PGTI), based in North Venice, Florida, makes impact-resistant windows and doors. The company, with annual revenues of $511 million, serves residential and commercial markets in both new and existing construction. The firm has delivery facilities in Miami, Florida.
The company's manufacturing, glass plant, and delivery facilities are in North Venice, Fla.. Its WinDoor division serves five-star resorts, luxury high-rise condominiums and mansions along the U.S. coastline.
PGTI's 12-month performance chart shows the stock appreciating 77% versus a 15% gain for the stock market.
PGTI's daily chart shows the stock climbing from $14.50 in February to a peak near $19.64 by early March. The stock then formed a tight flat base.
The stock recently broke out from its 12-week flat base. The move carries the stock to a new all-time high. That is bullish. The stock's momentum indicator is strongly bullish.
This year, analysts are forecasting a robust 51% surge in net. They look for net of 92 cents a share, up from 61 cents the year before. The stock sells with a price-earnings ratio of 21. We see that as attractive for value-growth investors.
Quarterly earnings growth will show a modest acceleration in growth. That is bullish. Net for the second quarter is projected to rise 40% to 28 cents a share from the 20 cents the year before. Profits for the third quarter are expected to jump 50% to 24 cents a share from the 16 cents the year before.
We see chances for an upside surprise. The company topped the consensus the past two quarters by 4 cents a share each quarter. Looking out to 2019, the Street is predicting a 17% increase in net to $1.08 a share from the anticipated 92 cents this year.
We are targeting PGTI for a move to $25 within the next few months, or sooner. A protective stop can be placed near $18.80.
