Apr
17
Written by:
Steve Patterson
4/17/2009 4:30 PM
Research In Motion Has Growth
In this market it is hard to find companies with growth in both revenue and earnings but Research in Motion (RIMM) is one of the larger organizations with good growth that has broken out of a negative trading pattern and begun to climb. You may have missed some of the move as it has risen from around $35 a share to a recent $68.35 a share over the course of the last month and a half. But if the markets continue to perform and the economy improves along with the markets, there is more upside with RIMM.
Growth in Revenue and Earnings
Yahoo! Finance is currently showing 34% revenue growth for the year for RIMM. Analysts are raising their expectations which allows the stock to move higher without the P/E (Price to Earnings) ratio being too expensive. For May of 2009, Analyst now expect 92 cents a share of profit while they only expected 84 cents a share a number of months ago. For the year, RIMM is looking to grow earnings at 13%. The forwarding looking P/E ratio is near 15 which is above the buying point but if the price targets continue to be moved higher, this will be a reasonable time to buy.
April 3rd Rally and April 16th Breakout
RIMM led to a sector wide rally on April 3rd as the stock jumped 21% after the company reported earnings for the fourth quarter of 2008 which showed 26% growth over the prior year's quarter. Five analyst upgraded the stock after the earnings announcement and it has continued to perform well ever since. The stock popped on Thursday of this week from $63.90 to $67.51, moving out of a trading range established on April 6th. The stock should continue to move higher in the near term with the help of the overall market and additional good technology earnings over the coming month.
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