Shares of II-VI (NASDAQ:IIVI) rose 23.1% in January of 2017, according to data from S&P Global Market Intelligence.
The maker of opto-electronic components and engineered materials reported second-quarter results near the end of January, sending share prices more than 12% higher overnight. As February rolled around, share prices had delivered a soaring 82%, 52-week performance.
II-VI has delivered a consistent stream of earnings surprises since the summer of 2014, and the last three earnings beats were particularly impressive. The stock is exploring all-time highs these days, and management's comments on the second quarter pointed to even greater gains ahead.
"Our bookings in the communications end markets were unprecedented," said II-VI CEO Chuck Mattera, referring to a segment that produces about 45% of II-VI's total revenues. "Those bookings and ongoing customer inquiries further validate our differentiation, the important role we play in the industry ecosystem, and underpin our confidence in our ability to deliver a strong FY2017."
The company is also leaning back against a record-level order backlog. Nearly all of the year-over-year sales growth was organic, and II-VI is currently doing research and infrastructure improvements to tackle rising demand for 3D sensor solutions.
I'll note that the soaring stock price may have lifted II-VI out of a value investor's comfort zone, but it's also a highly volatile stock that lets you buy on temporary dips. Whatever your investing style, it's a good idea to keep an eye on this ticker.