1. Summer Infant (SUMR) designs and sells health and safety products for children, including baby monitors, gates and blankets. Since 2007, Summer Infant has more than tripled revenue and net income each year, on average.
Quarter: First-quarter net income quadrupled to $1.8 million, or 11 cents. Revenue grew 27%. The operating margin extended from 2.9% to 6.5%. Summer Infant has $1.6 million of cash and $41 million of debt, equal to a debt-to-equity ratio of 0.6.
Stock: Summer Infant has quadrupled during the past year, outpacing U.S. benchmarks. It sells for a price-to-projected-earnings ratio of 12, a 31% discount to its peer average. Its PEG ratio of 0.4 demonstrates a 60% discount to projected fair value.
Consensus: Of firms rating Summer Infant, all five advocate buying its shares. Needham & Co. offers a price target of $11, leaving a potential return of 36%. Roth Capital forecasts that the stock will hit $10. Summer Infant has a market value of $125 million.-- Reported by Jake Lynch in Boston.
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