1. Nidec (NJ) jumped 4.1% to $23.27. Shares of the electronic components company have advanced 19% during the past month.
The numbers: Fiscal second-quarter net income decreased 22% to $94 million and earnings per share declined a more modest 5% to 19 cents, helped by a lower share count. Revenue declined 4% to $1.7 billion. Nidec's gross margin increased from 28% to 30%, but its operating margin was unchanged at 12%. Nidec has a stable financial position, evident in its quick ratio of 1.1 and debt-to-equity ratio of 0.4.
The stock: We rate Nidec "buy." The stock has doubled this year, beating major U.S. indices and earning a performance score of 9.2 out of 10. Although electronic components makers suffered during 2008, Nidec remained profitable. The shares command a premium, relative to peers, based on trailing earnings, book value and cash flow. But growth prospects and financial strength are redeeming features.
-- Reported by Jake Lynch in Boston.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV