Bull Of The Day: Knoll

Knoll also leveraged its fixed expenses in Q1, which helped increase the operating margin from 5.4% to 8.4% of net sales.

Estimates Rising

Following the strong Q1 beat, analysts unanimously revised their estimates significantly higher for Knoll.

The 2015 Zacks Consensus Estimate is now $1.46, up from $1.35 before the report. The 2016 consensus is currently $1.62, up from $1.56 over the same period.

This sent the stock to a Zacks Rank #1 (Strong Buy).

Reasonable Valuation

The valuation picture looks reasonable for Knoll. Shares trade around 16x 12-month forward earnings, which is in-line with the industry median. And its price to cash flow ratio of 16x is slightly below the industry multiple of 17.

The Bottom Line

With strong top-line growth, expanding margins, rising earnings estimates and reasonable valuation, Knoll offers investors a lot to like.

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