May
9
Written by:
Steve Patterson
5/9/2008 4:36 PM
FMC Technologies, Inc. (FTI), If You need More Oil
This deepwater equipment
manufacturer has moved very aggressively in the past couple of trading days
hitting new 52 week highs each of the last two days. You should wait for a pull
back of up to 5% before considering this growth company but if you need some
additional oil equipment exposure in your portfolio, this is a great stock and
company to consider.
The company
recently reported double-digit unit growth in the first quarter. In addition to
a very good quarter that beat estimates, FMC Technologies signed a contract
with Devon Energy For sub-sea services within the past week. In addition the
company is planning on spinning off new company, its John Bean subsidiary in
the near future. This unit provides foot processing and air transportation technology.
Owners of FTI will receive .215 shares of the new stock when the transaction
occurs.
With 32%
Sales Growth and 33% Earnings Growth and up trending earnings expectations
going forward, you could hold this stock for the next quarter and do quite
well. FMC Technologies has beaten expectations the last four quarters and
analyst continue to raise their expectations from 67 cents 90 days ago to 72
cents at the current time. The Price to Earnings ratio is 32 which makes the
stock a little on the expensive side but it should continue to move with the
recent news events, the strong uptrend in the USO ETF, and the company spin off
that is planned.