Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, February 20, 2015

Article Excerpt

MENTOR GRAPHICS CORP., $25.30, symbol MENT on Nasdaq, makes hardware and software for improving the design of electronic products and speeding up their development. For example, Mentor’s software lets automakers use less wiring in a car, identify potential safety issues and minimize electromagnetic effects on sensitive components. In the quarter ended October 31, 2014, Mentor’s revenue rose 6.2%, to $292.7 million from $275.6 million a year earlier. Excluding one-time items, earnings per share gained 6.3%, to $0.34 from $0.32. Mentor holds cash of $172.6 million, or $1.50 a share. Its $228.8 million of long-term debt is a low 7.9% of its $2.9-billion market cap. The company spends a very high 33% of its revenue on research to keep ahead in its competitive and constantly changing markets. The auto business is one of Mentor’s biggest growth areas, because the industry is quickly shifting from mechanical to electronic systems: electronics now make up roughly 40% of a car’s cost. To further its automotive expertise, Mentor bought XS…