Consensus estimates for 2014 are calling for earnings of $2.40 per share, putting the forward price-to-earnings ratio at 9.5. While that seems low on the surface, Ingram has historically garnered a relatively low price-to-earnings ratio, averaging about 9.5 during the past three years, primarily due to its low margins. Perhaps the Brightpoint acquisition will ultimately lead to a stronger bottom line, and an expansion of the P/E. It is certainly encouraging to see the stock breaking out of a 14 year trading range.
As for Facebook, yesterday's darling, I'll save more comments for a future column.
At the time of publication the author is long IM.