5 Tech Stocks to Buy for 2013: Astro-Med
Astro-Med (NASDAQ:ALOT) is rated at BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- 43.00% is the gross profit margin for ASTRO-MED INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ALOT's net profit margin of 6.35% significantly trails the industry average.
- ALOT's revenue growth trails the industry average of 27.6%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 63.4% when compared to the same quarter one year prior, rising from $0.80 million to $1.31 million.
Astro-Med, Inc. designs, develops, manufactures, and distributes various specialty printers, and data acquisition and analysis systems primarily in the United States. It operates in three segments: Test & Measurement (T&M), QuickLabel Systems (QuickLabel), and Grass Technologies (Grass).
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