Gardner Denver, Inc. (GDI)

mwolf12 (< 20) Submitted: 7/08/08 1:14 AM : Start Price: $48.96 GDI Score: -23.41

Here's another growth stock at a discount and on a pull back.

PS and PEG are a little higher than I like at 1.34 each, but not over my threshold to purchase. Those ratios are tempered with a PE of 12.4 and a PCF of 9.4. As for the growth portion, 5 yr revenue growth is 35% and 5 yr. earnings growth is 55%. Although I am slightly concerned with a slowdown in the most recent quarter earnings growth rate and a recent negative earnings surprise, I am encouraged with the increased revisions in earnings estimates.

The growth side is a little weaker than I like. But GDI has a good ROE of over 20% ROA is 9%, low debt / equity ratio, good earnings consistency and good margins lead me to give GDI an "outperform".

Good luck!

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