MDU Resources (MDU)

[OilStockReport]

MDU is one of Cramer's latest stock favorites.

Cramer says that MDU Resources is “an extremely strong company with great growth.” The North Dakota-based MDU, as of Sep 8, shows a trailing P/E ratio of 16.1, and a forward P/E ratio of 14.1. Estimated annual EPS growth for the next five years is 7.0%. Profit margin in 2010 was 5.9%, while it offered a 3.15% dividend.

The stock is currently trading 12.95% lower than its 52-week high, and its O-Metrix score is 3.36. Target price is $23.44, implying a 13.6% increase potential. Operating margin (10.0%) and debt-to equity ratio (0.5) are strong green flags. MDU Resources returned 5.5% in a year, and earnings increased by 293.12% this year.

On the other hand, P/B (1.4) and P/S (1.0) are moderate red flags. Insiders own only 0.02% of the stock, and it is paying the same dividend since Sep 2008. SMA50 and SMA200 are -2.43% and -3.34%, respectively. Earnings decreased by 7.94% this quarter. Hold if you own it, but do not buy.