Below are the top 5 companies in the Industrial Conglomerates industry ranked by the year-over-year expected EPS growth rate. The long-term growth rate is the expected annual increase in operating EPS over the next three to five years.
Otter Tail (NASDAQ:OTTR) EPS is expected to grow 57.1% year-over-year, better than the company's long-term growth rate of 5%. Based on the forward P/E of 16.9x its PEG ratio is 3.38, which signifies a premium valuation given for growth.
Raven Industries (NASDAQ:RAVN) EPS is expected to grow 23.5% year-over-year, better than the company's long-term growth rate of 10%. Based on the forward P/E of 17.2x its PEG ratio is 1.72, which signifies a premium valuation given for growth.
3M (NYSE:MMM) EPS is expected to grow 18.5% year-over-year, better than the company's long-term growth rate of 12%. Based on the forward P/E of 14.5x its PEG ratio is 1.2, which signifies a premium valuation given for growth.
Tyco International (NYSE:TYC) EPS is expected to grow 10.2% year-over-year, worse than the company's long-term growth rate of 12.1%. Based on the forward P/E of 13.7x its PEG ratio is 1.13, which signifies a premium valuation given for growth.
McDermott International (NYSE:MDR) EPS is expected to grow 9.7% year-over-year, worse than the company's long-term growth rate of 10.5%. Based on the forward P/E of 12.8x its PEG ratio is 1.22, which signifies a premium valuation given for growth.
SmarTrend is bearish on shares of OTTR and our subscribers were alerted to Sell on May 06, 2010 at $20.65. The stock has fallen 6.2% since the alert was issued.