Is Yunhong CTI a Good Consumer Stock to Buy?

NASDAQ: CTIB | CTI Industries Corporation News, Ratings, and Charts

CTIB – Novelty products manufacturer Yunhong CTI (CTIB) is among the leading producers of foil balloons and other party items. So, given the company’s robust financials and solid growth attributes, is CTIB worth adding to one’s portfolio? Let’s find out.

Yunhong CTI Ltd. (CTIB) in Lake Barrington, Ill., is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. In addition, the company distributes Candy Blossoms and other gift items and markets its products throughout the United States and in several other countries.

The company’s stock has gained 11.4% in price over the past year and 9.6% over the past six months. However, CTIB is currently trading 59% below its 52-week high of $5, which it hit on February 23, 2021.

Given its competitive landscape and the upcoming holiday season, we think the company should witness a rise in demand for its party products line and an overall boost to its revenue. Furthermore, given CTIB’s robust financials, the stock could witness significant upside in the near term.

Here’s what could shape CTIB’s performance in the near term:

Strong Financials

For the second quarter, ended June 30, 2021, CTIB’s revenue increased 10.1% year-over-year to $6.33 billion. Its operating income came in at $2.86 billion, compared to a $962.08 million operating loss in the prior-year quarter. The company reported $1.78 billion in net income, compared to a $1.52 billion net loss in the second quarter of 2020. In addition, its EPS amounted to $0.12, compared to a $0.41 loss per share during the same period last year.

Discounted Valuation

In terms of its trailing-12-months Price/Cash Flow, the stock is currently trading at 6.22x, which is 44.2% lower than the 11.13x industry average. Also, its 0.46x trailing-12-months Price/Sales multiple is 63.9% lower than the 1.27x industry average. Also, CTIB’s 1.15x trailing-12-months EV/Sales  is 24.1% lower than the 1.52x industry average.

Consensus Rating and Price Target Indicate Potential Upside

The only Wall Street analysts providing a rating for the stock rated it a Buy. Closing yesterday’s trading session at $2.05, the $7 average price target represents a potential 241.4% upside.

Bottom Line

CTIB could see significant demand for its products and consistent growth in the coming months, thanks to the forthcoming holiday season. Moreover, its strong fundamentals and favorable analyst estimates should instill investors with hope regarding the stock. Thus, we think the stock could be a good bet at its current, discounted valuation.

 


CTIB shares were trading at $2.01 per share on Wednesday morning, down $0.04 (-1.95%). Year-to-date, CTIB has gained 16.86%, versus a 23.11% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CTIBGet RatingGet RatingGet Rating
MGDDYGet RatingGet RatingGet Rating
BRDCYGet RatingGet RatingGet Rating
LKQGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Active Stocks on Wall Street to Buy Right Now

Even though the U.S. stocks ended July with decent gains, growing recession fears could keep the stock market under pressure in the near term. However, despite the current market headwinds, it could be wise to invest in fundamentally sound stocks, Microsoft (MSFT), SIGA Technologies (SIGA), and Fortinet (FTNT), which have been active on Wall Street lately. Read on to learn more…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

2 Winning Stocks to Pay Attention to This Week

Concerns over soaring inflation, the Fed’s aggressive interest rate hikes, the decline in GDP for two consecutive quarters, and a potential recession are expected to keep the stock market under pressure in the near term. Fundamentally sound and winning stocks Murphy USA (MUSA) and JAKKS Pacific (JAKK) could be good additions to your watchlist as investors prepare for a busy week of inflation data. Let’s discuss…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More CTI Industries Corporation (CTIB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CTIB News