Circor International (NYSE:CIR) is an industrial company that makes highly engineered flow-control valves capable of withstanding extreme pressures, temperatures, and corrosive environments.
With 85% of sales coming from the energy industry, revenue growth has been depressed by the severe drop in the price of oil and the associated cutbacks in capital spending in the energy industry over the past two years. However, its shares have come back strong so far in 2016.
We think management has done a first-rate job increasing operating margins throughout this period, which sets the stage for significant earnings leverage when sales growth resumes. Management is also working to refuel growth via new product development, expansion into adjacent product markets and underserved geographies, and acquisitions.
From Lauren Romeo's Today's Opportunities in Quality Small-Caps.
