Pall Corporation (PLL) hit an all-time high on May 14 with a price of $69.58, beating its previous high of $69.17 attained on March 8. Total shares traded on that date was 344,195 as compared to a 3-month average trade volume of 481,333. Pall shares are currently trading at $69.50 as of closing on May 14, reflecting a year-to-date return of 13.5%.
Shares of this leading supplier of fine filters have been showing a steady growth momentum for the last one year. During the last 6 months, Pall had hit a new 52-week high for 4 times. This shows growing willingness in the market to own this stock, which in turn is continuously pushing the price up to hit new highs. Supported by a Zacks Rank #2 (Buy), we expect the stock to rise even higher because of the following growth drivers.
Growth Drivers
In February, the company reported fiscal 2013 second quarter earnings of 73 cents, with a positive earnings surprise of 8.96%. The company has recorded positive earnings surprise for last three quarters with an average earnings surprise of 3.07% for the trailing four quarters.
Pall has entered into research collaboration with Lewis University for the second year in succession to broaden the scope of its research on microchips manufacturing. The company also entered into research collaboration with the King Abdullah University of Science and Technology (:KAUST) in Saudi Arabia to take part in a joint research program in the areas of filtration, separation and purification technologies. All these research projects are expected to benefit the company in developing new and improved products that will augment its revenue in future.
The company is expanding its operations in new markets in UAE and Asia. Along with the KAUST collaboration, it also opened its second office in the Middle East to strengthen its regional presence. These initiatives further prove Pall’s sustained dedication to improve its business performance in the Middle East region.
Additionally Pall also has a high positive growth expectation for its earnings and revenue as per Zacks Consensus Estimate. This is also coupled with a positive earnings estimate revision for the current and next year.
Other Stocks to Consider
Pall is expected to derive significant benefits from new product innovations and collaborations in the future. Some other companies in the sector worth considering at the moment are CECO Environmental (CECE)having Zacks Rank #1 (Strong Buy), while Calgon Carbon (CCC)and Fuel Tech Inc. (FTEK),both have Zacks Rank #2 (Buy).