DXP Enterprises Inc. (
DXPE) just announced a stock split after fantastic second-quarter results. Shares have been steadily climbing throughout the year and are a bargain with a PEG ratio of 0.6.
Company Description
DXP Enterprises, Inc., in conjunction with its subsidiaries, engages in the distribution, operation and maintenance of industrial equipment to customers in the United States. The company was founded in 1908, has a market cap. of $332 million and is headquartered in Houston, Texas.
Estimates Are Rising
The consensus estimates for next year have jumped from $4.10 up to $4.63 per share. Estimates for the current year, current quarter, and next year are also on the rise. 12 of the past 13 estimates for the past 30 days have been upward.
DXP's projected earnings growth rate for the current year is 38%, next year is 23%. While growth rates remain strong, the stock is relatively cheap with a PEG ratio of 0.6.
An Excellent Second Quarter
On July 30 DXP announced earnings per share for the second quarter of 93 cents, topping analyst estimates of 85 cents. This was the third surprise in the last 4 quarters with each averaging an upside of 6.3%.
Quarterly Sales more than doubled, up 120% year over year to $188 million. Approximately 30% of the company's sales came from services provided to the energy sector.
Upcoming Stock Split
DXP announced a 2-for-1 stock split was approved by the Board of Director on September 8th. The split will take effect on September 30th, when shareholders will receive an additional share for each they own by the close on September 22nd. The company is anticipating increased liquidity as it expects the current growth to continue well into the future.
The Chart
Shares of DXPE show explosive gains over the past 3 months and are currently in a bullish channel. The stock continues to set higher highs, but has sold off since hitting its 52-week high of $68.27. Take a look at the chart below.
