Why American Vanguard's Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty chemicals maker American Vanguard (NYSE: AVD  ) jumped 10% today after reporting earnings.

So what: Sales rose 8% to $97.2 million in the third quarter and net income jumped 10% to $8.9 million. Both figures were ahead of estimates with earnings per share of $0.31 was two cents ahead of estimates.  

Now what: Industry trends are helping grow sales and a partnership with Monsanto to market Impact herbicide is paying dividends. Management expects future growth to be strong given the company's new product lines. This wasn't a crushing earnings beat but with shares trading at 15 times forward estimates and industry trends remaining strong I think there's still room to run, especially if shares pull back in coming days.

More international growth stocks
American Vanguard is benefiting from an increasingly global crop market, which is helping a lot of American companies. In fact, profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it's gone.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 01, 2013, at 4:17 PM, funfundvierzig wrote:

    Venturing with the world's largest and leading seed enterprise, superior-managed Monsanto, should augur well for AVD shareholders.

    ...funfun..

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2709828, ~/Articles/ArticleHandler.aspx, 10/26/2014 3:22:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement