(BRNC) - Earnings per share are forecasted to grow a robust 55% over the next 3-5 years, while the industry is projected to grow 38%

Bronco Drilling Company, Inc. (BRNC), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for the past four quarters by an average margin of 16.3%. The company recently reported record revenues for the second quarter. Earnings per share are forecasted to grow a robust 55% over the next 3-5 years. BRNC has a price-to-book ratio of 1.6 and a PEG ratio of 0.14. Full Analysis Bronco Drilling Company, Inc. provides contract land drilling services to oil and natural gas exploration and production companies. BRNC's specialty is drilling in difficult areas, including deviated holes and unstable formations. BRNC posted second-quarter profits of 59 cents per share on Aug 8, marking four consecutive quarters of positive earnings surprises. Analysts were expecting 57 cents per share. During the past four quarters, the average margin of surprise was 16.3%. Earnings per share are forecasted to grow a robust 55% over the next 3-5 years, while the industry is projected to grow 38%. Revenues in the second quarter hit an all-time high at $67.1 million. The company posted revenues of $11.7 million in the prior-year period, marking quite a significant increase. The average number of operating rigs jumped to 43 during the quarter, versus 39 in the first quarter. Analysts' earnings estimates have been on the rise. Consensus estimates for this quarter and next quarter increased 4.7% and 5.6%, respectively, over the past 60 days. Four analysts raised their estimates for both quarters. Profit forecasts for the full years of 2006 and 2007 climbed 5.0% and 5.6%, respectively, over the same period of time and represent upward revisions by four analysts. BRNC is currently trading at a valuation of 12.7x trailing 12-month earnings and at 7.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Taking BRNC's projected earnings growth rate and current fiscal-year estimated earnings into account, the company has a miniscule PEG ratio of 0.14. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home