From Investors Business Daily Wednesday June 11 04:48 PM ET :
Matrix Service Grows As Builder For Energy, Utilities
It may not be an energy or utility stock, but its work in those industries makes Matrix Service practically part of them.
Matrix Service (NASDAQ:MTRX) builds plants and other facilities for oil and gas producers, utilities and big industrial companies. The stock became more important to growth investors on Tuesday, when it broke out of an eight-week base in heavy trading.
Shares are still near the 35.44 buy point. Average volume is thin at 211,000 shares a day.
Because it was a third-stage base, the stock may not rally as much as it did from its breakouts in September and November. Still, the latest pattern showed some tight price action and accumulation.
In the March-ended quarter, Matrix Service got nearly two-thirds of gross revenue from its energy and fuel-storage businesses. About 16% was from projects for utilities.
Matrix Service believes that the growth of U.S. oil and gas production and a shift from coal to gas-fired power generation provide the company with some of its best opportunities. Also, old infrastructure needs upgrades, the company noted in a presentation to investors.
Earnings per share increased 300%, 39%, 36% and 68% vs. year-ago levels in the past four quarters. Revenue growth accelerated 8%, 40% and 69% the past three quarters....MORE
