Since last time I have been writing about nanotechnology stocks Oxford equipment (LSE: OXIG) In June, its share price rose 13%. Its share price has risen 3% since the previous day as a result of a massively positive trading update posted yesterday.
The FTSE 250 Nanotechnology companies use a wide variety of products, from mining to space. It also has a presence in geographical areas, which has kept it in a good position over the past year.
Positive trading updates for Oxford instruments
The company’s latest trading update says that both orders and revenue have shown strong growth in the five months so far of its current financial year. The company now expects trading for the full year “Little” Ahead of expectations. This is a bit of a negative expectation from currency fluctuations, but that could affect revenue by 4% and operating profit by 3%. Although it is a reducing, the fact is that it has a limited effect. And in no way does it reflect the underlying performance of the company.
In fact, if anything, the latest update continues to add to Oxford Instrument’s ongoing strong performance. Despite no change in its revenue due to the epidemic, its operating profit has increased %% for the full year ending March 1.
Price increase for FTSE 250 stock
No wonder the company’s share price has risen. In the last one year alone, it has grown by 54%. This is not sounding perfect at the moment due to the low level for the stock market at this time last year. In fact, there are many stocks that show quite impressive capital gains at the moment. But Oxford Instruments stands, as its share price has been rising steadily for some time. Its share price has more than doubled in the last three years alone.
The challenge for such a stock is of course that over time it begins to look more valuable than others. Its price-to-earnings (P / E) ratio is now 34 times. But then his prospects look very good. This gives me an indication that there may be room for a share price to rise. This is especially so now that the economy is back. As growth continues, so does the demand for its products.
Should I buy it?
I was bullish on the stock for a while, but somehow or other didn’t buy it. It has grown quite a bit since I first started writing about it. But it looks like it could grow further. I maintain that the stock is a good buy for me, and that I can keep it for at least the next few years.
Manika Premsingh has no position in any of the shares mentioned. Motley Flower UK has no position on any of the shares mentioned. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.