Although Layne Christensen
Let me tell you why I'm having trouble containing myself over this stock. Layne currently has a market capitalization of less than $300 million, compared to a recent book value of around $450 million.
These two figures should interest you for a couple of reasons. Unlike industry titans like Fluor
But there's more. Its stock is trading around six times its forward earnings per share, and it has a PEG ratio of 0.42 based on five-year expected growth.
Layne also exhibits anomalous behavior regarding earnings surprises. It has reported positive earnings surprises for 13 of its last 17 quarters. However, last quarter was an exception. It missed estimates by $0.03, and once management expressed its cloudy outlook for the mineral exploration business and increasing price competition within parts of its water infrastructure segment, owners lost their collective cool; shares sold down 26% after a full day of trading.
While its earnings failed to beat the Street this past quarter, and its stock price faltered following the announcement, Layne still reported record revenue of $264.5 million. It was also able to keep $0.63 per share -- up 17.4% and 6.8%, respectively, over last year's same quarter. Furthermore, long-term investors are now presented with an enticing buying opportunity for a company that is fundamentally unchanged.
Chris Jones does not own shares in any of the companies mentioned, but he does occasionally enjoy the taste of fresh groundwater. When it comes to James Bond films, The Motley Fool's disclosure policy acknowledges Roger Moore and Roger Moore only.