(ACV) Alberto Culver Company – 14% Growth Projections

January 23rd, 2010

Alberto Culver Co. (ACV) continues to pressure its 52-week high just above $29 on rising estimates and a bullish next-year estimate of 14%.

Company Description

Alberto-Culver Co and its subsidiaries specialize in developing consumer and household products that it sells both domestically and internationally. The company’s product portfolio ranges from moisturizing lotions to cleaning products. Alberto Culver had paid a dividend since 1967 and has a market cap of $2.85 billion.

Third-Quarter Results

Shares of ACV jumped higher in late October on the company’s better than expected Q3 results. Revenues were mostly flat from last year at $385.2 million, but earnings came in ahead of expectations at 33 cents, a penny better than the Zacks Consensus Estimate. Alberto has been able to produce consistent results over the last year in a very tough market, beating or matching the Zacks Consensus Estimate in each of the last 4 quarters by an average of 9%.

The company’s results were driven by a strong showing in the U.S., where sales were up 8.3% from last year on the acquisition of Noxzema and gains in TRESemme and St. Ives.

Estimates

Analysts are bullish on Alberto, with estimates steadily rising over the last few months. The current year has added 9 cents to $1.58, while the next-year estimate is up 11 cents to $1.80, a 14% growth projection.

Valuation

In spite of the recent gains this stock still looks reasonably valued, trading with a forward P/E multiple of 18X, in line with the overall market.

The Chart

Shares of ACV bottomed out in late April just above $20 before turning the corner and launching the current up trend. More recently, ACV has been pressuring some short-term resistance just above $30, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

Zacks Investment Research

More on this topic (What's this?)
Markets-Outlook-28th September (Wall Street Sector Selector, 9/28/10)
Markets (Wall Street Sector Selector, 9/28/10)
Alberto-Culver Beats Estimates (ACV) (Benzinga, 11/1/10)
NYSE Consumer goods sector in review: (ABD, ACV, ADY, AKO.A, ALV) (Penny Stock DD, 1/3/11)
Read more on Alberto-Culver Company at Wikinvest

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