Stock Idea: Tenaris S.A. (TS, $44.37)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Tenaris S.A. (TS) serves oil, gas and engineering companies by providing welded steel pipes, rods, equipment and raw materials. The stock is down a bit this week based on Libyan unrest, yet CEO Rocca said, "the region generates about 2% to 3% of overall sales, so the financial impact will be limited." Read more at FoxBusiness.

Consensus earnings per share (eps) are projected to increase 46% and 26% for fiscal years 2011 and 2012. The PE is 15.8 based on 2011 eps, which is rather low vs. the earnings growth, and the dividend of $0.68 yields 1.53%.

Tenaris stock crashed from a high around $71 right before the financial meltdown of 2008 to a low around $18. The share price has been recovering steadily for two years now. Traders should be prepared to buy at $43 and sell as it retraces a recent move above $49.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.