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722100.0
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2018-02-12 00:00:00 UTC
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General Electric, Pepsi, Coke, Deere and Under Amour are part of Zacks Earnings Preview
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https://www.nasdaq.com/articles/general-electric-pepsi-coke-deere-and-under-amour-are-part-of-zacks-earnings-preview-2018
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For Immediate Release
Chicago, IL - Feb 12, 2018 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes General Electric GE , PepsiPEP , CokeKO , DeereDE and Under AmourUAA .
To see more earnings analysis, visit https://at.zacks.com/?id=3207 .
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here .
Market Ignored Impressive Earnings Performance
The market's head-long plunge over the past week or so has been squarely in the face of an extremely impressive display of earnings power from corporate America. As we have been pointing out since the start of the Q4 earnings season, not only is an above average proportion of companies beating top and bottom line expectations, but estimates for the current period are also materially going up.
Market participants are undoubtedly in the grip of a fear; they appear to be dumping stocks first and asking questions later. There is some basis for the fear. After all, if interest rates were breaking out with inflation finally showing up on the horizon, then it would make sense for prices to adjust lower. Stock prices are nothing but the discounted values of future cash flows. And if the discount rates were going up, then everything else equal, prices should drop.
But we know that 'everything else isn't equal.' Estimates for earnings and cash flows are going up at a pace that we haven't seen in years.
And it's not just 2018 Q1 estimates that are going, estimates for the following quarters and full-year 2018 are also going up.
Impressively, the revisions trend is broad-based and not concentrated in one or a few sectors. Of the 16 Zacks sectors, Q1 estimates have gone up for 15 sectors. The Conglomerates sector is the only one that has estimates come down, which is a function of the never-ending General Electric saga.
The ongoing market sell-off is likely nothing more than a correction. It is definitely not a function of an impending fundamentals cliff. The fundamentals story is about as solid and reassuring as it has even been in the recent past. Unless 10-year Treasury yields were headed towards 4% in a short span, I remain unconvinced of the pullback's staying power.
What this means is that the bull run that got underway in 2009 is still in place. Rationality typically takes the back seat in the stampede towards the exits, but sanity does eventually return. It always does. If nothing else, market valuations are starting to become very attractive. The S&P 500 index is now trading 16.9X forward 12-month consensus estimates, the lowest point since the November 2016 election. The index was trading as high as 19X in late November.
Q4 Earnings Season Scorecard (as of Friday, February 9, 2018)
Total earnings for the 341 S&P 500 members that have reported results already are up +14.7% from the same period last year on +9.3% higher revenues, with 78.6% beating EPS estimates and 76.8% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 63.6%.
Any way you look at these results, the Q4 earnings season is on track to be very good. Not only is growth tracking above what we had seen from the same group of 341 index members, but a record proportion are beating EPS and revenue estimates.
The comparison charts below highlight the very strong revenue momentum that's coming out of the Q4 earnings season, a truly impressive performance.
Expectations for Q4 as a Whole
We have more than 300 companies on deck to report results this week, including 57 S&P 500 members. Pepsi , Coke , Deere and Under Amour are some of the notable reports coming out this week.
Looking at Q4 as a whole, combining the actual results from the 341 index members with estimates from the still-to-come 159 companies, total earnings are expected to be up +14.1% from the same period last year on +8.2% higher revenues. This would follow +6.7% earnings growth in 2017 Q3 on +5.8% growth in revenues. This will be the highest quarterly growth rate in years.
Q4 earnings growth expectations should pick up in Q4 after dipping in the preceding quarter and continue accelerating going forward.
The Small-Cap Scorecard - S&P 600 Index
For the S&P 600 index, we now have Q4 results from 240 index members or 39.9% of the index's total membership. Total earnings for these 240 index members are up +12.1% from the same period last year on +10.3% higher revenues, with 69.6% beating EPS estimates and 72.1% beating revenue estimates.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Under Armour, Inc. (UAA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at Q4 as a whole, combining the actual results from the 341 index members with estimates from the still-to-come 159 companies, total earnings are expected to be up +14.1% from the same period last year on +8.2% higher revenues. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This week's list includes General Electric GE , PepsiPEP , CokeKO , DeereDE and Under AmourUAA .
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Total earnings for these 240 index members are up +12.1% from the same period last year on +10.3% higher revenues, with 69.6% beating EPS estimates and 72.1% beating revenue estimates. Click to get this free report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report To read this article on Zacks.com click here. This week's list includes General Electric GE , PepsiPEP , CokeKO , DeereDE and Under AmourUAA .
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Total earnings for these 240 index members are up +12.1% from the same period last year on +10.3% higher revenues, with 69.6% beating EPS estimates and 72.1% beating revenue estimates. Click to get this free report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report To read this article on Zacks.com click here. This week's list includes General Electric GE , PepsiPEP , CokeKO , DeereDE and Under AmourUAA .
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Looking at Q4 as a whole, combining the actual results from the 341 index members with estimates from the still-to-come 159 companies, total earnings are expected to be up +14.1% from the same period last year on +8.2% higher revenues. This week's list includes General Electric GE , PepsiPEP , CokeKO , DeereDE and Under AmourUAA . It is definitely not a function of an impending fundamentals cliff.
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944938aa-0976-4764-bf65-1f1891646535
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722101.0
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2018-02-10 00:00:00 UTC
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Deere & Co. reports first-quarter numbers February 16
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DE
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https://www.nasdaq.com/articles/deere-co-reports-first-quarter-numbers-february-16-2018-02-10
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What's Happening
Heavy machinery maker Deere & Co. ( DE ) will report its first-quarter results February 16. The company will report its quarterly numbers before the market open, with the consensus calling for earnings of $1.13 per share. During the same period last year the company earned $0.61 per share, and while the stock sold off with the market correction, shares are currently down 3.9% on the year.
Technical Analysis
DE was recently trading at $151.80, down $20.16 from its 12-month high and $45.08 above its 12-month low. Technical indicators for DE are bullish with a strong upward trend. The stock has recent support above $151.50 and recent resistance below $166.00. Of the 15 analysts who cover the stock, eight rate it a "strong buy", one rates it a "buy", and six rate it a "hold". DE gets a score of 73 from InvestorsObserver's Stock Score Report.
Analyst's Thoughts
DE took a hit with the overall market over the last week, but overall analysts remain upbeat on the stock, as the underlying fundamentals of the economy remain on solid ground. The housing market continues to perform well, and an increase in federal spending on infrastructure also creates a favorable environment for the company. Commodities have been good in recent months, which is always a positive for companies like Deere and its biggest competitor, Caterpillar ( CAT ). DE will likely continue to trade in sympathy to the overall market, but with a P/E of 23, it has less downside risk that a majority of stocks that traded into a much higher valuation while the markets moved to record highs. DE has delivered consistent earnings beats over the last eight quarters, with revenues falling short of the consensus just once during the same time period. Expect another good set of quarterly numbers, and the stock to slowly make back some of its recent losses.
Stock Only Trade
If you're looking to establish a long stock position in DE, consider buying the stock under $151.75. Sell if it falls below $136.50 or take profits if it gets to $174.50.
Bullish Trade
If you want a bullish hedged trade on the stock, consider a March 125/130 bull-put credit spread for a 30-cent credit. That's a potential 6.4% return (66.5% annualized*) and the stock would have to fall 14.2% to cause a problem.
Bearish Trade
If you want to take a bearish stance on the stock at this time, consider a March 170/175 bear-call credit spread for a $0.40 credit. That's a potential 8.7% return (90.7% annualized*) and the stock would have to rise 12.2% to cause a problem.
Covered Call Trade
If you like the stock, but wish to lower your cost basis on a new position, you may want to consider a March $155.00 covered call. Buy DE shares (typically 100 shares, scale as appropriate), while selling the March $155.00 call for a debit of $145.90 per share. The trade has a target assigned return of 6.2%, and a target annualized return of 67.0% (for comparison purposes only).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The housing market continues to perform well, and an increase in federal spending on infrastructure also creates a favorable environment for the company. Commodities have been good in recent months, which is always a positive for companies like Deere and its biggest competitor, Caterpillar ( CAT ). DE has delivered consistent earnings beats over the last eight quarters, with revenues falling short of the consensus just once during the same time period.
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What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its first-quarter results February 16. Technical Analysis DE was recently trading at $151.80, down $20.16 from its 12-month high and $45.08 above its 12-month low. Technical indicators for DE are bullish with a strong upward trend.
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DE will likely continue to trade in sympathy to the overall market, but with a P/E of 23, it has less downside risk that a majority of stocks that traded into a much higher valuation while the markets moved to record highs. Stock Only Trade If you're looking to establish a long stock position in DE, consider buying the stock under $151.75. Bullish Trade If you want a bullish hedged trade on the stock, consider a March 125/130 bull-put credit spread for a 30-cent credit.
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Buy DE shares (typically 100 shares, scale as appropriate), while selling the March $155.00 call for a debit of $145.90 per share. What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its first-quarter results February 16. Technical Analysis DE was recently trading at $151.80, down $20.16 from its 12-month high and $45.08 above its 12-month low.
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6c9cca64-ce67-4707-96ea-5dfb6dc6a363
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722102.0
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2018-02-09 00:00:00 UTC
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Factors Likely to Impact AptarGroup's (ATR) Q4 Earnings
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DE
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https://www.nasdaq.com/articles/factors-likely-to-impact-aptargroups-atr-q4-earnings-2018-02-09
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AptarGroup, Inc.ATR is scheduled to report fourth-quarter and full-year 2017 results on Feb 12, after the closing bell. In the last reported quarter, the company reported a 1% increase in earnings per share while revenues rose 6%.
Notably, the company's earnings performance has been impressive for the past few quarters. In the last reported quarter, AptarGroup's earnings per share beat the Zacks Consensus Estimate by a margin of 3.75%. The company witnessed an average positive earnings surprise of 3.77% in the trailing four quarters.
Let's see how things are shaping up for this announcement.
AptarGroup, Inc. Price and EPS Surprise
AptarGroup, Inc. price-eps-surprise | AptarGroup, Inc. Quote
Key Factors to Consider
In the Beauty + Home segment, sales to the personal care and home care markets are improving with new business wins contributing to growth. The company offers the industry's broadest solutions portfolio and going by the sales improvements lately, it seems the company's initiatives have yielded results and the segment is on track to deliver growth. Per the Zacks Consensus Estimate, the segment's sales are pegged at $314 million, a projected 8% growth from the $290 million in the prior-year quarter.
However, the segment is experiencing operational challenges at the European facility that produces decorative components sold to the beauty market. The operational issues are isolated to this one facility. Although the company is making progress in remediating the situation, it will take several quarters before results turn positive. Till then, results will be impacted. The Zacks Consensus Estimate for the segment's operating profit is at $18.3 million, reflecting a year-over-year decline of 13%.
In the Food + Beverage segment, demand for innovative dispensing closures is rising in both the food and beverage markets. AptarGroup's focus on execution of its growth strategy, investing for the future will help customers to grow their businesses with its innovative dispensing solutions. The company remains focused on returning Beauty + Home to sustainable, profitable growth. For hoe fourth quarter, the Zacks Consensus Estimate for the segment's revenues is pegged at $76 million, reflecting a 6% growth year over year. The estimate for operating profit is at $5.65 million, reflecting a 20% increase year over year.
The Pharma segment continues to benefit from strong demand across its portfolio of devices, mainly for devices used for allergy treatment, decongestions and ophthalmics, along with components sold to the injectables markets. Per the Zacks Consensus Estimate, the segment's sales will improve 10% year over year to $193. The estimate for operating income for the segment is pegged at $57 million, a 10% increase year over year.
In the to-be-reported quarter, revenue growth in each segment will contribute to overall growth in revenues. The Zacks Consensus Estimate for the quarter is at $583.8 million, reflecting 8.3% year-over-year improvement.
However, earnings will bear the impact of elevated raw material costs and lower results at its decorative facility. Further, the company's results in the fourth quarter are generally negatively impacted by customer plant shutdowns in December. This could impact results as well.
For fourth-quarter 2017, AptarGroup expects earnings to be in the range of 68-73 cents, a 2% increase at the mid-point from the year-ago earnings. The Zacks Consensus estimate for earnings per share is at 71 cents, reflecting a 3% increase year over year.
Over the past year, shares of AptarGroup have gained 10.5%, outperforming the 3.8% growth recorded by the industry .
AptarGroup currently carries a Zacks Rank #3 (Hold).
Stocks Worth Considering
Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an Earnings ESP of +1.56% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Deere's shares have surged 41% in the past year.
Altra Industrial Motion Corp. AIMC has an Earnings ESP of +1.03% and a Zacks Rank #2. Its shares have gone up 19% in a year's time.
The Earnings ESP for Cintas Corporation CTAS is +1.04%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter . It carries a Zacks Rank #2. Shares of Cintas have gone up 29% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Cintas Corporation (CTAS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, the segment is experiencing operational challenges at the European facility that produces decorative components sold to the beauty market. Further, the company's results in the fourth quarter are generally negatively impacted by customer plant shutdowns in December. AptarGroup, Inc. Price and EPS Surprise AptarGroup, Inc. price-eps-surprise | AptarGroup, Inc. Quote Key Factors to Consider In the Beauty + Home segment, sales to the personal care and home care markets are improving with new business wins contributing to growth.
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Click to get this free report AptarGroup, Inc. (ATR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report To read this article on Zacks.com click here. AptarGroup, Inc. Price and EPS Surprise AptarGroup, Inc. price-eps-surprise | AptarGroup, Inc. Quote Key Factors to Consider In the Beauty + Home segment, sales to the personal care and home care markets are improving with new business wins contributing to growth. The company offers the industry's broadest solutions portfolio and going by the sales improvements lately, it seems the company's initiatives have yielded results and the segment is on track to deliver growth.
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Click to get this free report AptarGroup, Inc. (ATR): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report To read this article on Zacks.com click here. AptarGroup, Inc. Price and EPS Surprise AptarGroup, Inc. price-eps-surprise | AptarGroup, Inc. Quote Key Factors to Consider In the Beauty + Home segment, sales to the personal care and home care markets are improving with new business wins contributing to growth. The company offers the industry's broadest solutions portfolio and going by the sales improvements lately, it seems the company's initiatives have yielded results and the segment is on track to deliver growth.
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AptarGroup, Inc. Price and EPS Surprise AptarGroup, Inc. price-eps-surprise | AptarGroup, Inc. Quote Key Factors to Consider In the Beauty + Home segment, sales to the personal care and home care markets are improving with new business wins contributing to growth. The company offers the industry's broadest solutions portfolio and going by the sales improvements lately, it seems the company's initiatives have yielded results and the segment is on track to deliver growth. However, the segment is experiencing operational challenges at the European facility that produces decorative components sold to the beauty market.
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0caf7ae4-594b-45c0-92e1-0d1f756ff9af
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722103.0
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2018-02-08 00:00:00 UTC
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EnerSys (ENS) Beats on Q3 Earnings & Revenues, Guides Well
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DE
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https://www.nasdaq.com/articles/enersys-ens-beats-on-q3-earnings-revenues-guides-well-2018-02-08
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EnerSysENS delivered third-quarter fiscal 2018 adjusted earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.14. The bottom line fared even better on a year-over-year comparison, improving 5.9% from the prior-year tally of $1.18. The figure also steered past the projected range of $1.12-$1.16.
Inside the Headlines
Net sales for the quarter were up 16.9% year over year to $658.9 million. The figure also trumped the Zacks Consensus Estimate of $633.1 million. The year-over-year increase was driven by increase in organic volume, favorable pricing actions and positive impact of foreign currency translation.
Enersys Price, Consensus and EPS Surprise
Enersys Price, Consensus and EPS Surprise | Enersys Quote
On a geographic basis, all regions recorded year-over-year growth. The Americas recorded a year-over-year sales improvement of 12.5% primarily owing to strong growth in organic volume as well as favorable pricing. Net sales for the EMEA region witnessed an increase of 20.8%, while Asia's net sales rose 27%. Europe witnessed increase in organic volume as well as favorable pricing actions and positive currency movements, while Asia benefited from strong organic volumes, favorable pricing and favorable impact of foreign currency translation.
In terms of product-line, Motive Power net sales climbed 13.5% year over year to $331.9 million, while Reserve Power went up 20.5% to $327 million. Motive Power benefited from an increase of 5%, each in organic volume and foreign currency translation impact along with 4% increase in pricing. Reserve Power growth was driven by an 11% increase in organic volume as well as a 5% positive impact of foreign currency.
The company's operating earnings for the quarter totaled $68.4 million, up 24.1% on year-over-year basis. Gross margin contracted 200 basis points to 25.8%. Decline in gross margins can be attributed to increase in commodity costs, partially offset by an increase in organic volume as well as pricing.
Liquidity
At the end of the fiscal third quarter, EnerSys had cash and cash equivalents of $571.3 million, up from $500.3 million at the end of fiscal 2017. At the end of the reported quarter, the company's long-term debt was $689 million, up from $587.6 million at the end of fiscal 2017.
As of Dec 31, 2017, the company's cash from operating activities came in at $129.9 million, compared with $166.7 million recorded as of Jan 1, 2017.
Guidance
EnerSys expects fiscal fourth-quarter adjusted earnings per share in the range of $1.20-$1.24. This guidance excludes projected charges of 5 cents from restructuring programs, ERP system implementation and acquisition expenses.
Our Take
EnerSys believes long-term growth drivers are intact, which is likely to drive top-line performance in fiscal 2018. These factors include higher demand for premium products, lean initiatives, robust prospects in Asia, cost reduction programs and strategic product launches.
Currently, both of the company's segments namely, Motive Power and Reserve Power are witnessing good prospects. For Motive Power business, the company believes that China will provide the much-needed growth impetus, as the Chinese market grows on the back of the rise of middle-class population. The company believes Indian market to act as a strong catalyst for the Reserve Power Business.
However, the company is in the midst of a transformation, wherein it has been taking multiple long-term investments to boost growth. This might impact the company's gross margins adversely in the coming quarters.
EnerSys currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks in the same space include Alarm.com Holdings, Inc. ALRM , Smith (A.O.) Corporation AOS and Deere & Company DE . While Alarm.com Holdings sports a Zacks Rank #1 (Strong Buy), A.O. Smith Corporation and Deere & Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Alarm.com Holdings has an excellent earnings surprise history, surpassing estimates in the trailing four quarters, with an average beat of 65.4%.
A.O. Smith Corporation also boasts a decent earnings surprise history, exceeding estimates thrice in the trailing four quarters, with an average beat of 3.9%.
Deere & Company has posted earnings beat in the trailing four quarters, for an average beat of 19.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Smith (A.O.) Corporation (AOS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Motive Power business, the company believes that China will provide the much-needed growth impetus, as the Chinese market grows on the back of the rise of middle-class population. Smith Corporation also boasts a decent earnings surprise history, exceeding estimates thrice in the trailing four quarters, with an average beat of 3.9%. EnerSysENS delivered third-quarter fiscal 2018 adjusted earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.14.
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Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. EnerSysENS delivered third-quarter fiscal 2018 adjusted earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.14. Inside the Headlines Net sales for the quarter were up 16.9% year over year to $658.9 million.
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Enersys Price, Consensus and EPS Surprise Enersys Price, Consensus and EPS Surprise | Enersys Quote On a geographic basis, all regions recorded year-over-year growth. Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. EnerSysENS delivered third-quarter fiscal 2018 adjusted earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.14.
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The Americas recorded a year-over-year sales improvement of 12.5% primarily owing to strong growth in organic volume as well as favorable pricing. EnerSysENS delivered third-quarter fiscal 2018 adjusted earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.14. Inside the Headlines Net sales for the quarter were up 16.9% year over year to $658.9 million.
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79c09a33-9a46-4f07-96fd-4bcee33f627d
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722104.0
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2018-02-08 00:00:00 UTC
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Crown Holdings (CCK) Q4 Earnings Meet, Sales Top Estimates
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DE
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https://www.nasdaq.com/articles/crown-holdings-cck-q4-earnings-meet-sales-top-estimates-2018-02-08
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Crown Holdings Inc.CCK delivered fourth-quarter 2017 adjusted earnings per share of 79 cents, which came in line with the Zacks Consensus Estimate and recorded an improvement of 11.3% on a year-over-year basis. Earnings came close to the higher end of management's guidance range of 75-80 cents.
On a reported basis, the company recorded a loss of 67 cents per share, against earnings of 47 cents reported in the prior-year quarter.
Net sales in the quarter rose 12.7% year over year to $2,168 million. Revenues also beat the Zacks Consensus Estimate of $2,034 million. Year-over-year sales growth was driven by improved global beverage can volumes, food and aerosol can volumes, and the pass through of higher material costs to customers. It was also aided by favorable impact of currency translation. Beverage can volumes grew 4.5% year over year in the reported quarter.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. Price, Consensus and EPS Surprise | Crown Holdings, Inc. Quote
Cost and Margins
Cost of products sold increased 14.7% year over year to $1,758 million. On a year-over-year basis, gross profit improved 5% to $410 million, while gross margin contracted 140 basis points (bps) to 18.9% in the quarter.
Selling and administrative expenses flared up 6.5% year over year to $99 million. Adjusted segment operating income increased 3.8% year over year to $247 million in the quarter. Operating margin declined 100 bps to 14.5% from 11.4% recorded in the year-ago quarter.
Segment Performance
Net sales from the Americas Beverage segment were $762 million, up 1.7% from $749 million in the year-ago quarter. Segment operating profit inched up 0.8% to $129 million from $128 million in the year-earlier quarter.
The North-America Food segment's sales increased 0.6% year over year to $165 million. Operating earnings remained flat year over year at $10 million.
The European Beverage segment's sales increased 5.5% year over year to $324 million. Operating income rose 8.6% year over year to $38 million.
Revenues in the European Food segment were up 9.8% year over year to $458 million. Segment operating profit went up 15.6% to $37 million from $32 million recorded in the year-ago quarter.
Revenues in the Asia-Pacific segment improved 2.3% year over year to $312 million. Operating profit went up to $44 million from $43 million reported in the prior-year quarter.
2017 Performance
Crown Holdings reported adjusted earnings per share of $4.03 in 2017, up 2.5% from $3.93 per share recorded in the prior year. Earnings came in line with the Zacks Consensus Estimate. Earnings touched the higher end of management's guidance range of $3.98-$4.03.
Revenues grew 5% year over year to $8,698 million from $8,284 million recorded in 2016. In addition, revenues beat the Zacks Consensus Estimate of $8,564 million.
Financial Update
Crown Holdings had cash and cash equivalents of $424 million at the end of the fourth quarter compared with $559 million at the end of the prior-year quarter. Cash flow from operations came in at $760 million in 2017 compared to $930 million recorded last year.
Adjusted free cash flow was $297 million in the reported quarter compared with $325 million in the prior-year quarter. As of the quarter end, Crown Holdings' total debt increased to $5,343 million compared with $4,911 million as of the year-ago quarter end.
During 2017, the company purchased 6.2 million shares of its common stock for $339 million.
On Jan 3, the company issued a Worker Adjustment and Retraining Notification (WARN) and announced its intention to close the beverage can-manufacturing facility in Lawrence, MA. With around 100 employees, the facility consists of two production lines with a capacity of 1.6 billion 12-ounce beverage cans per year.
Signode Acquisition
In December 2017, Crown Holdings entered into an agreement to acquire Signode Industrial Group, a leading global provider of transit packaging systems and solutions from The Carlyle Group, for $3.91 billion. This acquisition will add a portfolio of premier transit and protective packaging franchises to Crown Holdings' metal packaging business and significantly boost its free cash flow.
In January 2018, Crown Holdings issued unsecured notes through its subsidiaries to fund the Signode transaction. The notes include €335 million principal amount of 2.25% senior unsecured notes due 2023, and €500 million principal amount of 2.875% senior unsecured notes and $875 million principal amount of 4.75% senior unsecured notes due 2026. The company also entered into agreements with lenders for €750 million and $1.25 billion of Term Loan B borrowings to be drawn at the closing of the acquisition.
Impact of New Accounting Pronouncements
Crown Holdings stated that three recently-issued accounting standards are expected to have an impact on the company's reporting and disclosure in 2018. Under the new guidance, only service cost component of pension and postretirement benefit costs will be presented with other compensation costs. The remaining components will be reported outside income from operations. The expected impact of this guidance on the company's 2018 results will be a reduction in income from operations of around $67 million. However, it will not affect net income or earnings per share. Moreover, the prior-period results will be restated to reflect the new guidance.
The company also expects that the new guidance related to the classification of certain cash receipts and payments associated with its receivables securitization programs will result in a change to the classification of these payments on the statement of cash flows. However, it will not impact cash available for debt payment or other uses.
Further, the new revenue recognition rules will accelerate the timing of revenue recognized on its certain products. The new rules are not expected to materially impact the amount of revenues recognized over full-year 2018 compared to the previous accounting guidance, but could have an impact on the amounts recognized on a quarterly basis.
Outlook
Crown Holdings initiated adjusted diluted earnings per share guidance range of $4.30-$4.50 for full-year 2018. It also projects first-quarter 2018 earnings per share in the range of 75-85 cents.
This January, Crown Holdings started its new glass facility in Chihuahua, Mexico, which is ahead of schedule. The plant will primarily serve the expanding beer market in the northern part of the country. The company will also gain from additional growth projects completed in 2017 comprising the start-up of a two-line beverage can plant in Nichols, NY, the conversion of a second beverage can line from steel to aluminum in Custines, France, a beverage can capacity expansion in Colombia, the commencement of a one-line beverage can facility in Jakarta, Indonesia, and the addition of a second production line to the Danang, Vietnam beverage can plant.
In addition to the above, Crown Holdings expects to begin production at its one-line beverage can plant in Yangon, Myanmar, during second-quarter 2018 and the two-line beverage can facility in Valencia, Spain, during the fourth quarter. It will also construct a third beverage can line at its existing plant in Phnom Penh, Cambodia. These initiatives reflect that beverage cans continues to become the increasingly preferred package of beverage marketers. So, the growing demand for beverage can volumes will drive the company's growth.
Share Price Performance
In the past year, Crown Holdings has outperformed the industry it belongs to. Its shares have gained 3.9%, while the industry recorded growth of 1.3%.
Zacks Rank & Key Picks
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Mobile Mini, Inc. MINI and Deere & Company DE . While Applied Industrial Technologies and Mobile Mini sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has a long-term earnings growth rate of 12%. Its shares have appreciated 26.3%, over the past six months.
Mobile Mini has a long-term earnings growth rate of 14%. The company's shares have rallied 34.5% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 21.9% in six months' time.
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Crown Holdings, Inc. (CCK): Free Stock Analysis Report
Mobile Mini, Inc. (MINI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Crown Holdings Inc.CCK delivered fourth-quarter 2017 adjusted earnings per share of 79 cents, which came in line with the Zacks Consensus Estimate and recorded an improvement of 11.3% on a year-over-year basis. On a reported basis, the company recorded a loss of 67 cents per share, against earnings of 47 cents reported in the prior-year quarter. It was also aided by favorable impact of currency translation.
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The notes include €335 million principal amount of 2.25% senior unsecured notes due 2023, and €500 million principal amount of 2.875% senior unsecured notes and $875 million principal amount of 4.75% senior unsecured notes due 2026. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Crown Holdings Inc.CCK delivered fourth-quarter 2017 adjusted earnings per share of 79 cents, which came in line with the Zacks Consensus Estimate and recorded an improvement of 11.3% on a year-over-year basis.
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Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Crown Holdings Inc.CCK delivered fourth-quarter 2017 adjusted earnings per share of 79 cents, which came in line with the Zacks Consensus Estimate and recorded an improvement of 11.3% on a year-over-year basis. On a reported basis, the company recorded a loss of 67 cents per share, against earnings of 47 cents reported in the prior-year quarter.
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2017 Performance Crown Holdings reported adjusted earnings per share of $4.03 in 2017, up 2.5% from $3.93 per share recorded in the prior year. Its shares have gained 3.9%, while the industry recorded growth of 1.3%. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here.
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950e4133-8c61-42e9-a34f-2988a225aec8
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722105.0
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2018-02-07 00:00:00 UTC
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Ball Corp (BLL) Q4 Earnings Beat, Tax Cuts to Aid Growth
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DE
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https://www.nasdaq.com/articles/ball-corp-bll-q4-earnings-beat-tax-cuts-to-aid-growth-2018-02-07
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Ball CorporationBLL reported fourth-quarter 2017 adjusted earnings of 60 cents per share, beating the Zacks Consensus Estimate of 52 cents. Earnings also jumped 36.4% year over year.
On a reported basis, the company posted earnings of 52 cents per share compared to 15 cents per share recorded in the prior-year quarter.
Total revenues increased 8.9% year over year to $2,747 million in the reported quarter. The figure also surpassed the Zacks Consensus Estimate of $2,658 million.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation Price, Consensus and EPS Surprise | Ball Corporation Quote
Operational Update
Cost of sales went up 6.3% year over year to $2,134 million. Gross profit jumped 19% year over year to $613 million. Gross margin expanded 190 basis points (bps) to 22.3%.
Selling, general and administrative expenses dropped 28.8% year over year to $116 million. Adjusted operating income increased 35.7% to $350 million from $258 million reported in the year-ago quarter. The company reported operating margin of 12.7%, up 250 bps year over year.
Segment Performance
The Beverage packaging's North and Central America segment's revenues went up 4.1% year over year to $998 million in the reported quarter. Operating earnings of $133 million increased 16.7% year over year.
Sales at the Beverage packaging, Europe segment came in at $536 million in the reported quarter, advancing 17.5% year over year. Operating earnings surged 53% year over year to $49 million.
The Beverage packaging South America segment's revenues jumped 25% year over year to $547 million in the reported quarter. Operating earnings of $128 million recorded a substantial improvement from $85 million recorded in the prior-year quarter.
The Food and Aerosol Packaging segment's sales came in at $271 million, up 4.6% year over year. Operating earnings rose 8.3% year over year to $26 million.
In the Aerospace and Technologies segment, sales went up 6.6% year over year to $257 million. Operating earnings increased 7.7% year over year to $28 million. The segment's backlog came in at around $1.75 billion in 2017, up 25% year over year.
2017 Performance
Ball Corporation reported adjusted earnings per share of $2.04 in 2017, up 17% from $1.74 per share recorded in the prior year. Earnings surpassed the Zacks Consensus Estimate of $1.95. Including one-time items, the bottom line came in at $1.12, up 38% from 81 cents recorded in 2016.
Revenues went up 21% year over year to $10.98 billion from $9.06 billion recorded in 2016. The figure also surpassed the Zacks Consensus Estimate of $10.89 billion.
Financial Condition
Ball Corporation had cash and cash equivalents of $448 million at the end of the fourth quarter compared with $597 million recorded at the end of fourth-quarter 2016. Cash flow from operations came in at $1,478 million in 2017, a substantial improvement from $194 million recorded last year. Ball Corporation's long-term debt decreased to $6,518 million in 2017 from $7,310 million at the end of previous year.
Outlook
Ball Corporation provided its financial goals for 2018. The company expects its free cash flow to be around $900 million and capital spending to be at least $600 million. It will execute numerous growth capital and network optimization projects to enhance customers' access to its innovative specialty container portfolio while also an expanding U.S. aerospace infrastructure.
Ball Corporation's construction of a state-of-the-art specialty beverage can-manufacturing facility in Goodyear, AZ, is right on schedule and budget with production beginning early in the second half of 2018. Further, construction continues on the company's new aluminum beverage can facility in Madrid, Spain, which is scheduled to commence production in mid-2018. It also stated that the Colorado facility expansions in Westminster and Boulder, CO, are on track for completion in fourth-quarter 2018.
Notably, Ball Corporation remains optimistic about the U.S. Tax Cuts and Jobs Act's potential which will likely benefit its end markets. The company estimates that the Act will reduce its global effective tax rate on comparable earnings from approximately 25% in 2017 to around 23% in the current year. Notably, Ball Corporation reaffirmed that its comparable EBITDA will be $2 billion and free cash flow will be in excess of $1 billion in 2019.
Share Price Performance
Ball Corporation's shares have underperformed the industry over the past year. The stock has lost around 0.8% compared with 1.3% growth recorded by the industry during the said time frame.
Zacks Rank & Key Picks
Ball Corporation currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Mobile Mini, Inc. MINI and Deere & Company DE . While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), Mobile Mini and Deere carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has a long-term earnings growth rate of 12%. Its shares have appreciated 23.6%, over the past six months.
Mobile Mini has a long-term earnings growth rate of 14%. The company's shares have rallied 38.9% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 22.6% in six months' time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ball Corporation (BLL): Free Stock Analysis Report
Mobile Mini, Inc. (MINI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On a reported basis, the company posted earnings of 52 cents per share compared to 15 cents per share recorded in the prior-year quarter. Gross margin expanded 190 basis points (bps) to 22.3%. Operating earnings of $128 million recorded a substantial improvement from $85 million recorded in the prior-year quarter.
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Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Mobile Mini, Inc. MINI and Deere & Company DE . Click to get this free report Ball Corporation (BLL): Free Stock Analysis Report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. On a reported basis, the company posted earnings of 52 cents per share compared to 15 cents per share recorded in the prior-year quarter.
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Click to get this free report Ball Corporation (BLL): Free Stock Analysis Report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. On a reported basis, the company posted earnings of 52 cents per share compared to 15 cents per share recorded in the prior-year quarter. Gross margin expanded 190 basis points (bps) to 22.3%.
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On a reported basis, the company posted earnings of 52 cents per share compared to 15 cents per share recorded in the prior-year quarter. Gross margin expanded 190 basis points (bps) to 22.3%. Operating earnings of $128 million recorded a substantial improvement from $85 million recorded in the prior-year quarter.
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ffdbbf91-5c26-4847-969d-916ad8e50743
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722106.0
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2018-02-07 00:00:00 UTC
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AGCO Corp (AGCO) Misses on Q4 Earnings, Issues 2018 View
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DE
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https://www.nasdaq.com/articles/agco-corp-agco-misses-on-q4-earnings-issues-2018-view-2018-02-07
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AGCO CorporationAGCO reported adjusted earnings of $1.10 per share in fourth-quarter 2017, up 55% from 84 cents per share recorded in fourth-quarter 2016. However, earnings missed the Zacks Consensus Estimate of $1.11.
Including restructuring and other infrequent expenses, the company reported earnings of 55 cents per share in the quarter compared to 77 cents per share reported in the prior-year quarter.
AGCO generated revenues of $2.53 billion, up 20.7% from $2.09 billion recorded in the year-ago quarter. Additionally, revenues surpassed the Zacks Consensus Estimate of $2.39 billion. Excluding favorable currency translation impacts of approximately 5.9%, net sales climbed approximately 14.8% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation Price, Consensus and EPS Surprise | AGCO Corporation Quote
Operational Update
Cost of sales went up 19% to $2 billion from the year-earlier quarter. Gross profit came in at $531 million in the quarter, jumping 26% from $420 million recorded in the year-earlier quarter. Gross margin came in at 21%, expanding 100 basis points (bps) year over year.
Selling, general and administrative expenses flared up 23% year over year to $277 million. Adjusted income from operations surged 48.3% year over year to $145 million. Consequently, operating margin advanced 100 bps year over year to 5.7%.
Segment Performance
Sales at the North America segment increased 18.9% year over year to $531.8 million in the fourth quarter. The segment reported operating income of $12 million, as against loss of $4.9 million incurred in the year-ago quarter.
Sales at the South America segment climbed 2.5% year over year to $315.9 million. The segment reported operating income of $0.7 million compared to $13.6 million recorded in the year-earlier quarter.
The EAME (Europe/ Africa/ Middle East) segment's sales came in at $1,434.6 million, up 25.9% from the year-ago quarter. EAME's operating income climbed 34% to $163.4 million from $122 million reported in the prior-year quarter.
Sales at the Asia/Pacific segment jumped 23% year over year to $245 million from $199 million recorded a year ago. The segment reported income of $25.6 million, up a whopping 126.5% from the year-ago quarter.
2017 Performance
AGCO reported adjusted earnings per share of $3.02 in 2017, up 22.3% from $2.47 per share recorded in the prior year. Earnings came in line with the Zacks Consensus Estimate. Including one-time items, the bottom line came in at $2.32, up 18% from $1.96 recorded in 2016.
Revenues were up 12% year over year to $8.3 billion from $7.4 billion recorded in 2016. Revenues surpassed the Zacks Consensus Estimate of $8.1 billion.
Financial Update
AGCO reported cash and cash equivalents of $367.7 million at the end of fourth-quarter 2017, down from $429.7 million at 2016 end. Cash flow from operations came in at $577.6 million in 2017 compared to $369.5 million recorded last year.
Guidance
AGCO guided that its net sales for 2018 will be around $9.1 billion, reflecting year-over-year growth of 9.6%. This is backed by improved sales volumes, positive pricing, as well as acquisition and foreign currency translation impacts. AGCO expects its earnings per share in 2018 will be around $3.50. It also anticipates gross and operating margins to improve from the 2017 levels, driven by the positive impact of pricing and cost-reduction efforts, partially offset by elevated engineering expenses.
AGCO remains optimistic about industry conditions in 2018 which have been trending positively from the lower end of the agricultural equipment cycle in key markets. Further, the company will continue to make long-term investments to raise the efficiency of factories, improve service levels and strengthen product offerings. It will also remain focused on cost management which will aid margins.
AGCO projects industry tractor sales to be relatively flat in 2018 compared to the previous year, with some modest improvements in combines and hay equipment. Farm income in 2018 is expected to improve modestly driven primarily by better dairy economics and higher 2017 wheat production. Thus, the company expects farmer sentiment to remain positive and 2018 demand to be relatively flat compared to prior-year levels.
AGCO projects its industry sales will be flat to modestly up in 2018 compared to 2017 in South America. Moreover, increasing demand for commodities, driven by the growing world population, rising emerging market protein consumption and biofuel use are anticipated to support elevated farm income over the long term.
Share Price Performance
Over the past year, AGCO has underperformed the industry with respect to price performance. The stock has gained around 5.2%, while the industry recorded growth of 37.2%.
Zacks Rank & Key Picks
AGCO currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Dover Corporation DOV and Deere & Company DE . While Applied Industrial Technologies and Dover sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has a long-term earnings growth rate of 12%. Its shares have appreciated 23.6%, over the past six months.
Dover has a long-term earnings growth rate of 13%. The company's shares have rallied 14.9% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 22.6% in six months' time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, increasing demand for commodities, driven by the growing world population, rising emerging market protein consumption and biofuel use are anticipated to support elevated farm income over the long term. Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Dover Corporation DOV and Deere & Company DE . AGCO CorporationAGCO reported adjusted earnings of $1.10 per share in fourth-quarter 2017, up 55% from 84 cents per share recorded in fourth-quarter 2016.
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Better-ranked stocks in the same sector include Applied Industrial Technologies, Inc. AIT , Dover Corporation DOV and Deere & Company DE . Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. AGCO CorporationAGCO reported adjusted earnings of $1.10 per share in fourth-quarter 2017, up 55% from 84 cents per share recorded in fourth-quarter 2016.
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Sales at the Asia/Pacific segment jumped 23% year over year to $245 million from $199 million recorded a year ago. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. AGCO CorporationAGCO reported adjusted earnings of $1.10 per share in fourth-quarter 2017, up 55% from 84 cents per share recorded in fourth-quarter 2016.
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The stock has gained around 5.2%, while the industry recorded growth of 37.2%. AGCO CorporationAGCO reported adjusted earnings of $1.10 per share in fourth-quarter 2017, up 55% from 84 cents per share recorded in fourth-quarter 2016. AGCO generated revenues of $2.53 billion, up 20.7% from $2.09 billion recorded in the year-ago quarter.
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07741bf5-5e2f-494c-a085-82a4b7cbadb8
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722107.0
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2018-02-06 00:00:00 UTC
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Regal Beloit (RBC) Q4 Earnings In Line, Revenues Up Y/Y
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DE
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https://www.nasdaq.com/articles/regal-beloit-rbc-q4-earnings-in-line-revenues-up-y-y-2018-02-06
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Industrial goods manufacturer Regal Beloit CorporationRBC reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends. On a GAAP basis, the company reported a net income of $51.5 million or $1.15 per share compared with $45.6 million or $1.01 per share in the year-earlier quarter. The significant year-over-year improvement was backed by higher revenues.
In the reported quarter, adjusted earnings were $1.14 per share compared with $1.04 in the year-ago quarter. The figure improved considerably year over year and came in line with the Zacks Consensus Estimate.
For 2017, Regal Beloit recorded GAAP earnings of $213 million or $4.74 per share compared with $203.4 million or $4.52 per share in 2016. Adjusted earnings for 2017 were $4.87 per share compared with $4.44 in the previous year.
Net sales increased to $820.7 million from $758.1 million in the year-earlier quarter, largely driven by organic growth across all segments. Moreover, quarterly revenues beat the Zacks Consensus Estimate of $790 million. For 2017, the company recorded net sales of $3,360.3 million compared with $3,224.5 million in 2016.
GAAP operating income improved to $78.3 million from $70.1 million in the prior-year quarter. Adjusted operating income was $79.5 million compared with $72.2 million in the year-ago quarter. Adjusted operating margin came in at 9.7%, up 20 basis points compared with the prior-year quarter.
Segmental Analysis
Revenues from the Power Transmission Solutions segment increased 13.2% year over year to $196.6 million. Sales were driven by rise in demand in the oil & gas and renewable energy end markets and in the distribution channel.However, GAAP operating margin decreased to 12.2% from 13% in the prior-year quarter.
Regal Beloit Corporation Price, Consensus and EPS Surprise
Regal Beloit Corporation Price, Consensus and EPS Surprise | Regal Beloit Corporation Quote
Net sales in the Commercial and Industrial System segment were $407.7 million, up 10.4% year over year owing to broad-based global end market strength in both OEM and distribution channels. Operating margin at the segment increased to 5.9% from 5.6% in the prior-year quarter.
Net sales from the Climate Solutions segment were $216.4 million, up 0.6% year over year. Operating margin of the segment also improved to 14% from 12.5% in the year-ago quarter.
Balance Sheet and Cash Flow
At year-end 2017, Regal Beloit's cash and cash equivalents were $139.6 million while long-term debt was $1,039.9 million compared with the respective tallies of $284.5 million and $1,310.9 million in the year-ago period. The company paid down $74.3 million of debt in the quarter under review.
Net cash from operating activities for 2017 totaled $291.9 million, down from $442.3 million in the year-ago period. In 2017, free cash flow was 106.4% of net income or $226.7 million compared with the respective tallies of 185.4% and $377.1 million in 2016.
Guidance
For 2018, Regal Beloit anticipates organic growth in range of low to mid-single digit single digits and expects to improve its adjusted operating margin for the third consecutive year. Additionally, it projects adjusted earnings per share guidance in the range of $5.35-$5.75 while GAAP earnings are expected in the range of $5.19-$5.59.
Regal Beloit carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include Applied Industrial Technologies, Inc. AIT , Cintas Corporation CTAS and Deere & Company DE . While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), Cintas and Deere & Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has an excellent earnings surprise history, surpassing estimates in the trailing four quarters with an average beat of 11.0%.
Cintas has an excellent earnings surprise history, exceeding estimates in the trailing four quarters with an average beat of 8.2%.
Deere & Company has posted earning beat in the trailing four quarters. It boasts an average beat of 19.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cintas Corporation (CTAS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Regal Beloit Corporation (RBC): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Industrial goods manufacturer Regal Beloit CorporationRBC reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends. Sales were driven by rise in demand in the oil & gas and renewable energy end markets and in the distribution channel.However, GAAP operating margin decreased to 12.2% from 13% in the prior-year quarter. The figure improved considerably year over year and came in line with the Zacks Consensus Estimate.
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While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), Cintas and Deere & Company carry a Zacks Rank #2 (Buy). Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial goods manufacturer Regal Beloit CorporationRBC reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends.
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Balance Sheet and Cash Flow At year-end 2017, Regal Beloit's cash and cash equivalents were $139.6 million while long-term debt was $1,039.9 million compared with the respective tallies of $284.5 million and $1,310.9 million in the year-ago period. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial goods manufacturer Regal Beloit CorporationRBC reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends.
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Industrial goods manufacturer Regal Beloit CorporationRBC reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends. The figure improved considerably year over year and came in line with the Zacks Consensus Estimate. For 2017, Regal Beloit recorded GAAP earnings of $213 million or $4.74 per share compared with $203.4 million or $4.52 per share in 2016.
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7f2f4a79-37e4-451d-bd4a-28ac1efca96a
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722108.0
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2018-02-06 00:00:00 UTC
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Emerson's (EMR) Q1 Earnings, Revenues Top Estimates, Up Y/Y
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https://www.nasdaq.com/articles/emersons-emr-q1-earnings-revenues-top-estimates-up-y-y-2018-02-06
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Emerson Electric Co.EMR reported first-quarter fiscal 2018 adjusted earnings of 58 cents per share, beating the Zacks Consensus Estimate of 54 cents by 7.4%.
Emerson's earnings from continuing operations reflected growth of 18.4% year over year. Favorableglobal marketconditions as well as restructuring benefits boosted the bottom line.
Inside the Headlines
The fiscal first quarter witnessed the company sustain its growth track, as the Automation Solutions platform delivered net sales growth in the reported quarter. Net sales grew 18.7% year over year to $3,816 million and surpassed the Zacks Consensus Estimate of $3,716 million.
Underlying sales growth for the quarter was 7%, while acquisitions and divestitures contributed 9% to growth and currency translation affected the top line favorably by 3%. Continuously improving conditions in the energy related, hybrid and general industrial markets drove sales.
Emerson Electric Company Price, Consensus and EPS Surprise
Emerson Electric Company Price, Consensus and EPS Surprise | Emerson Electric Company Quote
Coming to the segments' performance in the fiscal first quarter, the company's Automation Solutions platform reported an impressive 30.8% year-over-year growth in net sales to $2,572 million. Underlying sales was up 9% driven by strong MRO demand, as well as small and mid-sized projects focused on expansion and optimization of existing facilities.
Underlying sales in North America rose 14%, led by energy, life sciences and chemical markets as well as investment in Western Canada. Asia was up 13%, while China grew 22% on robust demand in the process and discrete markets. Latin America grew 6%, while Europe and Middle East/Africa were down 1% and 7% respectively.
Margins contracted 160 basis points (bps) year over year to 15%. However, excluding the dilutive impact of the Valves & Controls acquisition, margins actually expanded 120 bps to 17.8%, driven by leverage on higher sales and restructuring benefits.
Net Sales in the Commercial & Residential Solutions were flat, whereas the segment experienced 5% growth in underlying sales, with net sales coming in at $1,252 million. Underlying sales in North America grew 1%, driven by strong demand for professional tools in oil and gas, and construction-related markets.
Asia witnessed particularly strong growth once again, as it rose 17% year over year, driven by robust growth in China, which is experiencing a surge in demand in the refrigeration and air conditioning markets. Both Europe and Latin America were up 1%, while Middle East/Africa grew 4%.
Under the platform, the Climate Technologies business grew 7.3% year over year to $922 million, while the Tools & Home Products unit declined 16% from the year-ago quarter to $330 million.
Margins expanded 20 bps to 20.1% compared with the prior-year quarter.
Other Developments
During the reported quarter, the company completed the acquisition of Paradigm, a dominant provider of software solutions to the oil and gas industry, for $510 million. Paradigm, when combined with Emerson's Roxar software business, will enable Emerson to offer a best-in-class, end-to-end Exploration & Production (E&P) software portfolio offering.
Moreover, the company decided to acquire a leading technology company in foodservice markets, Cooper-Atkins. The buyout will serve to deepen Emerson's ability to cater to the needs of its cold chain customers, offering safe control of food as well as other temperature-sensitive products. The transaction is anticipated to close within the next couple of months after fulfilling regulatory conditions.
Liquidity & Cash Flow
Exiting the quarter, the company had cash and cash equivalents of $3.1 billion, with long-term debt of $3.4 billion. Net cash provided by operating activities in the quarter increased 87.8% from the prior-year quarter to $447 million.
Outlook
Concurrent with the earnings release, Emerson issued outlook for fiscal 2018. It now expects net sales for the year to be up 11-13%, with underlying sales likely to increase 5-7%. This is comparable with prior projections of an increase of 8-10% in net sales, with underlying sales likely to grow 4-6%. Further, Emerson projects GAAP earnings per share for fiscal 2018 to be in the range of $3.05-$3.15 (earlier guidance: $2.66-$2.86).
Emerson expects Automation Solutions net sales to be up 18-20%, while Commercial & Residential Solutions net sales are now expected to increase 1-3%.
To Conclude
Emerson is well positioned to benefit from global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Going forward, Emerson believes that telecommunications infrastructure demand will continue to be one of the strongest growth drivers.
The company's Automation Solutions segment has been experiencing favorable trends in power and life sciences along with improving MRO spending by oil and gas customers, which is expected to boost growth. For Commercial & Residential business, the company's focus on domains like human comfort, connected home, food quality, and advancing energy efficiency at home and work, is likely to prove conductive for its operations.
Emerson carries a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks in the same space include Applied Industrial Technologies, Inc. AIT , Cintas Corp. CTAS and Deere & Company DE . While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), Cintas and Deere & Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has an excellent earnings surprise history, surpassing estimates in the trailing four quarters with an average beat of 11.0%.
Cintas also has an excellent earnings surprise history, exceeding estimates in the trailing four quarters with an average beat of 8.2%.
Deere & Company has surpassed earnings estimates in the trailing four quarters. It boasts an average beat of 19.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cintas Corporation (CTAS): Free Stock Analysis Report
Emerson Electric Company (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Developments During the reported quarter, the company completed the acquisition of Paradigm, a dominant provider of software solutions to the oil and gas industry, for $510 million. The buyout will serve to deepen Emerson's ability to cater to the needs of its cold chain customers, offering safe control of food as well as other temperature-sensitive products. Inside the Headlines The fiscal first quarter witnessed the company sustain its growth track, as the Automation Solutions platform delivered net sales growth in the reported quarter.
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While Applied Industrial Technologies sports a Zacks Rank #1 (Strong Buy), Cintas and Deere & Company carry a Zacks Rank #2 (Buy). Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Inside the Headlines The fiscal first quarter witnessed the company sustain its growth track, as the Automation Solutions platform delivered net sales growth in the reported quarter.
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Inside the Headlines The fiscal first quarter witnessed the company sustain its growth track, as the Automation Solutions platform delivered net sales growth in the reported quarter. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Underlying sales growth for the quarter was 7%, while acquisitions and divestitures contributed 9% to growth and currency translation affected the top line favorably by 3%.
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Underlying sales in North America grew 1%, driven by strong demand for professional tools in oil and gas, and construction-related markets. It now expects net sales for the year to be up 11-13%, with underlying sales likely to increase 5-7%. Inside the Headlines The fiscal first quarter witnessed the company sustain its growth track, as the Automation Solutions platform delivered net sales growth in the reported quarter.
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327bfedb-d1c4-47ab-9cc0-6ac694061d8a
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722109.0
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2018-02-05 00:00:00 UTC
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What's in the Cards for iRobot (IRBT) This Earnings Season?
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DE
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https://www.nasdaq.com/articles/whats-in-the-cards-for-irobot-irbt-this-earnings-season-2018-02-05
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iRobot CorporationIRBT is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7.
iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters. Notably, its earnings in third-quarter fiscal 2017 came in at 60 cents, beating the Zacks Consensus Estimate of 44 cents.
What the Zacks Model Unveils?
Our proven model predicts that iRobot will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
Zacks ESP & Rank: iRobot has an Earnings ESP of +17.65% and also carries a favorable Zacks Rank #2 (Buy).
iRobot Corporation Price and EPS Surprise
iRobot Corporation Price and EPS Surprise | iRobot Corporation Quote
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
We only caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
What's Driving the Better-Than-Expected Earnings?
iRobot believes solid demand for popular home robotic products such as Roomba 800, Roomba 900 and Braava jet will bolster its revenues in the to-be-reported quarter. Moreover, the company's marketing programs and launch of innovative products are anticipated to be conducive to revenue growth. Also, iRobot expects that the Robopolis acquisition (October 2017) will boost its European revenues in the quarters ahead. Notably, the company lifted its revenue guidance for 2017 from the $815-$825 million range to the $870-$880 million band (estimating a year-over-year increment of 33-34%).
The company also expects that improved top-line performance, discrete tax benefit and greater operational efficacy will widen its profitability.
Nonetheless, the company has revised its earnings view for 2017 to the $1.65-$2.00 per share range from the previous projection in the $1.80-$2.00 per share range.
Key Picks
Here are some stocks in the Zacks Categorized Industrial Products sector sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Deere & Company DE , with an Earnings ESP of +1.56% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Acco Brands Corporation ACCO , with an Earnings ESP of +0.76% and a Zacks Rank #2.
Donaldson Company, Inc. DCI , with an Earnings ESP of +3.45% and a Zacks Rank #3 (Hold).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Acco Brands Corporation (ACCO): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our proven model predicts that iRobot will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients. The company also expects that improved top-line performance, discrete tax benefit and greater operational efficacy will widen its profitability. iRobot CorporationIRBT is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7. iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters.
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Key Picks Here are some stocks in the Zacks Categorized Industrial Products sector sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat: Deere & Company DE , with an Earnings ESP of +1.56% and a Zacks Rank #2. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. iRobot CorporationIRBT is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7. iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters.
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Key Picks Here are some stocks in the Zacks Categorized Industrial Products sector sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat: Deere & Company DE , with an Earnings ESP of +1.56% and a Zacks Rank #2. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. iRobot CorporationIRBT is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7. iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters.
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iRobot CorporationIRBT is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7. iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters. What the Zacks Model Unveils? Our proven model predicts that iRobot will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
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8ee8a2c4-6284-4701-bf36-23912b144e2e
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722110.0
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2018-02-03 00:00:00 UTC
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Validea Martin Zweig Strategy Daily Upgrade Report - 2/3/2018
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https://www.nasdaq.com/articles/validea-martin-zweig-strategy-daily-upgrade-report-232018-2018-02-03
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The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig . This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
GENCOR INDUSTRIES, INC. ( DE ) ( GENC ) is a small-cap growth stock in the Constr. & Agric. Machinery industry. The rating according to our strategy based on Martin Zweig changed from 62% to 85% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gencor Industries, Inc. is a manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. The Company designs, manufactures and sells machinery and related equipment used primarily for the production of asphalt and highway construction materials. Its geographical segments are United States and Other. The Company's principal products include asphalt plants, combustion systems and fluid heat transfer systems. It also manufactures related asphalt plant equipment, including hot mix storage silos, fabric filtration systems, cold feed bins and other plant components. The Company also manufactures soil remediation machinery, as well as combustion systems for rotary dryers, kilns, fume and liquid incinerators and fuel heaters. Its General Combustion subsidiary also manufactures the Hy-Way heat and Beverley lines of thermal fluid heat transfer systems and specialty storage tanks for an array of industry uses.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Martin Zweig has returned 446.28% vs. 176.10% for the S&P 500. For more details on this strategy, click here
About Martin Zweig : During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Company Description: Gencor Industries, Inc. is a manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig . Company Description: Gencor Industries, Inc. is a manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. The Company's principal products include asphalt plants, combustion systems and fluid heat transfer systems.
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The rating according to our strategy based on Martin Zweig changed from 62% to 85% based on the firm's underlying fundamentals and the stock's valuation. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Martin Zweig has returned 446.28% vs. 176.10% for the S&P 500. For more details on this strategy, click here About Martin Zweig : During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest.
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The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig . For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Martin Zweig has returned 446.28% vs. 176.10% for the S&P 500. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
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8d2d220e-bb03-436e-a63c-9a1b2d362534
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722111.0
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2018-02-02 00:00:00 UTC
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What's in the Offing for Emerson (EMR) in Q1 Earnings?
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https://www.nasdaq.com/articles/whats-in-the-offing-for-emerson-emr-in-q1-earnings-2018-02-02
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Emerson Electric Co.EMR is scheduled to report first-quarter 2018 results before the opening bell on Feb 6. Last quarter, the company reported earnings of 83 cents per share, reflecting a beat of 3.8%.
We expect Emerson to score an earnings beat in the to-be-reported quarter.
Why a Likely Positive Surprise?
Our proven model shows that Emerson has the right combination of the two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below:
Zacks ESP: Earnings ESP for Emerson is +1.39% as the Most Accurate estimate of 55 cents is pegged higher than the Zacks Consensus Estimate of 54 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Emerson Electric Company Price and EPS Surprise
Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote
Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Ranks #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Reasons Driving Better-than-Expected Results
Emerson is well positioned to benefit from global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Going forward, Emerson believes telecommunications infrastructure demand will continue to be one of the strongest growth drivers. Further, its restructuring efforts, undertaken over the past few quarters, are likely to prove conductive to upcoming results.
Currently, the company's Automation Solutions segment has been experiencing favorable trends in power and life sciences along with improving MRO spending by oil and gas customers, which is expected to boost growth. For the Commercial & Residential business, the company's focus on domains like human comfort, connected home, food quality, advancing energy efficiency at home and work, is likely to prove conductive for its operations. Going forward, we believe selected investment opportunities along with positive trends in certain business areas offer modest growth opportunities.
The company's accretive acquisitions are also anticipatedto be conducive to its top line, in the to-be reported quarter. The company's acquisition of Blending & Transfer Systems business of FMC Technologies will fortify presence in advanced flow measurement and control technologies. The company also acquired Pentair Valves & Controls, Locus Traxx and PakSense which are likely to drive sales.
Despite these positives, prolonged softness in the oil and gas markets is likely to affect both capital spending and operational expenditure of clients, which in turn may hurt Emerson's operations. This apart, currency fluctuations haveremained a headwind over the past few quarters, and mightimpact earnings and revenues in the upcoming release as well.
OtherStocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Huntington Ingalls Industries, Inc. HII has an Earnings ESP of +3.43% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company DE has an Earnings ESP of +3.29% and a Zacks Rank #2.
Acco Brands Corp. ACCO has an Earnings ESP of +0.76% and a Zacks Rank #2.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report
Emerson Electric Company (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Acco Brands Corporation (ACCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our proven model shows that Emerson has the right combination of the two key ingredients. Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. Going forward, Emerson believes telecommunications infrastructure demand will continue to be one of the strongest growth drivers.
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Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. OtherStocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Huntington Ingalls Industries, Inc. HII has an Earnings ESP of +3.43% and a Zacks Rank #1. Click to get this free report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. OtherStocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Huntington Ingalls Industries, Inc. HII has an Earnings ESP of +3.43% and a Zacks Rank #1. Click to get this free report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Emerson has the right combination of the two key ingredients. Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat.
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167c3520-1c72-49e7-9548-0f75a57bd500
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722112.0
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2018-01-31 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Beacon Roofing Supply, D.R. Horton, Deere and Fastenal
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-beacon-roofing-supply-d.r.-horton-deere-and-fastenal
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For Immediate Release
Chicago, IL - Jan 31, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Beacon Roofing Supply, Inc. BECN , D.R. Horton, Inc. DHI , Deere & CompanyDE and Fastenal CompanyFAST .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Construction Industry Set to Boom in 2018: 4 Top Picks
The construction industry in the United States is expected to grow by leaps and bounds in 2018. Also, a ratio which measures the optimism surrounding the sector's growth hit a record high recently. Further, hiring in the sector has been unusually high over the last one year. Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country.
Lastly, strong economic growth and recent tax reforms continue to boost the industry's growth. Such a scenario quite naturally calls for investing in construction stocks.
Construction Spending Hits a Record High
In November 2017, construction spending increased, surpassing expectations. The figure came in at $1.26 trillion, logging an annual growth rate of 2.4%. Such strength in spending was the result of increased investments across real estate, commercial and residential projects. Further, spending on private construction remained high and invited gains to the industry.
To top it all, firms operating in the space are also looking to expand their workforce as evident from unusually high hiring even under dire circumstances. Per the latest data by the Bureau of Labor Statistics, the construction industry added as many as 30,000 jobs to the U.S. economy in December, when parts of the country were ravaged by harsh winters.
In 2017 alone, the sector added 210,000 jobs, which represented a surge of 35% from 2016. Economists have already stated that such figures are indicative of excellent performance by the space in 2018.
Moreover, the ratio which measures the industry optimism over business growth hit a record high. Such optimism is backed primarily by business-friendly economic conditions and overall growth. Also, economists have stated that construction in the office market, transportation and retail will see a boom this year.
Infrastructure Spending to be Beefed Up
Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Although spending on government projects have declined 3.4% year to date, the figure is still close to an increase of 3% -- the highest monthly gain in three years - that it hit in October 2017. This is courtesy of higher spending at the federal, state and local levels.
Increased infrastructure spending was the cornerstone of Trump's pesidential campaign. As a matter of fact, he had proposed a $1 trillion infrastructure spending financed by new tax credits to encourage private equity investors. He plans to deploy $200 billion in federal money over the next decade to "incentivize another $800 billion in spending from state and local authorities and private entities."
That said, the question on investors' mind is: Will infrastructure spending be increased at all? One can roughly gauge that this might be possible. Efforts made by members of the GOP to push through tax reforms are indicative of their legislative intent. More than anything, it is the repute and the goodwill that President Trump and his team would like to maintain.
A leaked draft of Trump's infrastructure policy, published on Axios on Jan 23, 2018, clearly mentions that the administration is not keen on building new roads or highways and taking up "unsustainable projects." The administration instead focuses on improving the conditions of the existing roads and highways. The plan also hints at protecting non-federally funded utilities within the country. Such statements give a clear indication that the citizens will soon witness the passing of the Infrastructure Spending Bill.
Fall in Starts a Momentary Hiccup
The year started with a disappointing reading for housing starts. Per the Department of Commerce, housing starts declined 8.2% in December - its largest percentage drop since November 2016. However, analysts see such a downturn as temporary. Further, housing possibly felt the chill from December's brutally low temperatures.
Also, the 2.4% increase in homebuilding to 1.202 million units in 2017 is one important point to be noted. This is the highest level recorded in a decade. Strong economic growth, a robust labor market and tax cuts are continuing to bolster the housing industry.
Future demand is also likely to remain strong given the shortage in supply of existing homes. Also, homebuilders are not planning more speculative homes. These are units which still do not have a buyer. And this phenomenon has not been witnessed since the last housing boom, which preceded the recession of 2008. ( Read More )
4 Best Stocks to Buy
Market watchers remain optimistic about the construction industry's growth under robust economic conditions. We suggest you consider the following construction stocks to tap the opportunities building up.
These stocks have a favorable Zacks Rank indicating positive estimate revisions, which generally translate into rapid price appreciation. These flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Beacon Roofing Supply, Inc. is the second-largest distributor of residential and non-residential roofing materials in the United States and Canada.
Beacon Roofing has a Zacks Rank #2. The company's projected EPS growth for the current year is 46.41%. The Zacks Consensus Estimate for the current year has improved 7.8% over the last 60 days.
D.R. Horton, Inc. , based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
D.R. Horton carries a Zacks Rank #2. Its projected EPS growth for the current year is 29.01%. The Zacks Consensus Estimate for the current year has improved 9.7% over the last 60 days.
Deere & Company is the manufacturer and distributor of agriculture, construction and forestry equipment.
The Zacks Rank #2 company's projected EPS growth for the current year is 22.05%.
Fastenal Company is a wholesale distributor of industrial and construction supplies in the United States.
Fastenal Company sports a Zacks Rank #1. Its projected EPS growth for the current year is 27.56%. The Zacks Consensus Estimate for the current year has improved 15.5% over the last 60 days.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fastenal Company (FAST): Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Per the latest data by the Bureau of Labor Statistics, the construction industry added as many as 30,000 jobs to the U.S. economy in December, when parts of the country were ravaged by harsh winters. Stocks recently featured in the blog include Beacon Roofing Supply, Inc. BECN , D.R.
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Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Horton, Inc. (DHI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Beacon Roofing Supply, Inc. BECN , D.R.
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Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Stocks recently featured in the blog include Beacon Roofing Supply, Inc. BECN , D.R.
|
Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Stocks recently featured in the blog include Beacon Roofing Supply, Inc. BECN , D.R. Horton, Inc. DHI , Deere & CompanyDE and Fastenal CompanyFAST .
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f308ce91-ab7d-4dbd-a0b6-7adbedf82b11
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722113.0
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2018-01-30 00:00:00 UTC
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Construction Industry Set to Boom in 2018: 4 Top Picks
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DE
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https://www.nasdaq.com/articles/construction-industry-set-boom-2018-4-top-picks-2018-01-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The construction industry in the United States is expected to grow by leaps and bounds in 2018. Also, a ratio which measures the optimism surrounding the sector's growth hit a record high recently. Further, hiring in the sector has been unusually high over the last one year.
Source: ©iStock.com/Sashick
Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country.
Lastly, strong economic growth and recent tax reforms continue to boost the industry's growth. Such a scenario quite naturally calls for investing in construction stocks.
Construction Spending Hits a Record High
In November 2017, construction spending increased, surpassing expectations. The figure came in at $1.26 trillion, logging an annual growth rate of 2.4%. Such strength in spending was the result of increased investments across real estate, commercial and residential projects. Further, spending on private construction remained high and invited gains to the industry.
To top it all, firms operating in the space are also looking to expand their workforce as evident from unusually high hiring even under dire circumstances. Per the latest data by the Bureau of Labor Statistics, the construction industry added as many as 30,000 jobs to the U.S. economy in December, when parts of the country were ravaged by harsh winters.
5 Construction Stocks Set to Carve a Beat in Q4 Earnings
In 2017 alone, the sector added 210,000 jobs, which represented a surge of 35% from 2016. Economists have already stated that such figures are indicative of excellent performance by the space in 2018.
Moreover, the ratio which measures the industry optimism over business growth hit a record high. Such optimism is backed primarily by business-friendly economic conditions and overall growth. Also, economists have stated that construction in the office market, transportation and retail will see a boom this year.
Infrastructure Spending to be Beefed Up
Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Although spending on government projects have declined 3.4% year to date, the figure is still close to an increase of 3% - the highest monthly gain in three years - that it hit in October 2017. This is courtesy of higher spending at the federal, state and local levels.
Increased infrastructure spending was the cornerstone of Trump's pesidential campaign. As a matter of fact, he had proposed a $1 trillion infrastructure spending financed by new tax credits to encourage private equity investors. He plans to deploy $200 billion in federal money over the next decade to "incentivize another $800 billion in spending from state and local authorities and private entities."
That said, the question on investors' mind is: Will infrastructure spending be increased at all? One can roughly gauge that this might be possible. Efforts made by members of the GOP to push through tax reforms are indicative of their legislative intent. More than anything, it is the repute and the goodwill that President Trump and his team would like to maintain.
A leaked draft of Trump's infrastructure policy, published on Axios on Jan 23, 2018, clearly mentions that the administration is not keen on building new roads or highways and taking up "unsustainable projects." The administration instead focuses on improving the conditions of the existing roads and highways. The plan also hints at protecting non-federally funded utilities within the country. Such statements give a clear indication that the citizens will soon witness the passing of the Infrastructure Spending Bill.
Fall in Starts a Momentary Hiccup
The year started with a disappointing reading for housing starts. Per the Department of Commerce, housing starts declined 8.2% in December - its largest percentage drop since November 2016. However, analysts see such a downturn as temporary. Further, housing possibly felt the chill from December's brutally low temperatures.
Also, the 2.4% increase in homebuilding to 1.202 million units in 2017 is one important point to be noted. This is the highest level recorded in a decade. Strong economic growth, a robust labor market and tax cuts are continuing to bolster the housing industry.
Future demand is also likely to remain strong given the shortage in supply of existing homes. Also, homebuilders are not planning more speculative homes. These are units which still do not have a buyer. And this phenomenon has not been witnessed since the last housing boom, which preceded the recession of 2008.
4 Best Stocks to Buy
Market watchers remain optimistic about the construction industry's growth under robust economic conditions. We suggest you consider the following construction stocks to tap the opportunities building up.
These stocks have a favorable Zacks Rank indicating positive estimate revisions, which generally translate into rapid price appreciation. These flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Beacon Roofing Supply, Inc. (NASDAQ: BECN ) is the second-largest distributor of residential and non-residential roofing materials in the United States and Canada.
Beacon Roofing has a Zacks Rank #2. The company's projected EPS growth for the current year is 46.41%. The Zacks Consensus Estimate for the current year has improved 7.8% over the last 60 days.
D.R. Horton Inc (NYSE: DHI ), based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
D.R. Horton carries a Zacks Rank #2. Its projected EPS growth for the current year is 29.01%. The Zacks Consensus Estimate for the current year has improved 9.7% over the last 60 days.
These 4 REITs Will Thrive as Rates Rise
Deere & Company (NYSE: DE ) is the manufacturer and distributor of agriculture, construction and forestry equipment.
The Zacks Rank #2 company's projected EPS growth for the current year is 22.05%.
Fastenal Company (NASDAQ: FAST ) is a wholesale distributor of industrial and construction supplies in the United States.
Fastenal Company sports a Zacks Rank #1. Its projected EPS growth for the current year is 27.56%. The Zacks Consensus Estimate for the current year has improved 15.5% over the last 60 days.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
More From InvestorPlace
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Compare Brokers
The post Construction Industry Set to Boom in 2018: 4 Top Picks appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: ©iStock.com/Sashick Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Horton Inc (NYSE: DHI ), based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. Such strength in spending was the result of increased investments across real estate, commercial and residential projects.
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Source: ©iStock.com/Sashick Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Such strength in spending was the result of increased investments across real estate, commercial and residential projects. To top it all, firms operating in the space are also looking to expand their workforce as evident from unusually high hiring even under dire circumstances.
|
Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. See 4 crypto-related stocks now >> More From InvestorPlace Top 10 Most Traded Cryptocurrencies: The Biggest Names in Altcoin ETFs and Stocks to Buy on Falling Dollar 5 Great Breakout Stocks Offering Superlative Returns Compare Brokers The post Construction Industry Set to Boom in 2018: 4 Top Picks appeared first on InvestorPlace . Source: ©iStock.com/Sashick Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country.
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Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. 4 Best Stocks to Buy Market watchers remain optimistic about the construction industry's growth under robust economic conditions. Source: ©iStock.com/Sashick Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country.
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54d5c5d3-e622-44cc-a7a3-d5754e894cfb
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722114.0
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2018-01-30 00:00:00 UTC
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Construction Industry Set to Boom in 2018: 4 Top Picks
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DE
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https://www.nasdaq.com/articles/construction-industry-set-to-boom-in-2018%3A-4-top-picks-2018-01-30
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nan
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nan
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The construction industry in the United States is expected to grow by leaps and bounds in 2018. Also, a ratio which measures the optimism surrounding the sector's growth hit a record high recently. Further, hiring in the sector has been unusually high over the last one year. Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country.
Lastly, strong economic growth and recent tax reforms continue to boost the industry's growth. Such a scenario quite naturally calls for investing in construction stocks.
Construction Spending Hits a Record High
In November 2017, construction spending increased, surpassing expectations. The figure came in at $1.26 trillion, logging an annual growth rate of 2.4%. Such strength in spending was the result of increased investments across real estate, commercial and residential projects. Further, spending on private construction remained high and invited gains to the industry.
To top it all, firms operating in the space are also looking to expand their workforce as evident from unusually high hiring even under dire circumstances. Per the latest data by the Bureau of Labor Statistics, the construction industry added as many as 30,000 jobs to the U.S. economy in December, when parts of the country were ravaged by harsh winters.
In 2017 alone, the sector added 210,000 jobs, which represented a surge of 35% from 2016. Economists have already stated that such figures are indicative of excellent performance by the space in 2018.
Moreover, the ratio which measures the industry optimism over business growth hit a record high. Such optimism is backed primarily by business-friendly economic conditions and overall growth. Also, economists have stated that construction in the office market, transportation and retail will see a boom this year.
Infrastructure Spending to be Beefed Up
Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Although spending on government projects have declined 3.4% year to date, the figure is still close to an increase of 3% -- the highest monthly gain in three years - that it hit in October 2017. This is courtesy of higher spending at the federal, state and local levels.
Increased infrastructure spending was the cornerstone of Trump's pesidential campaign. As a matter of fact, he had proposed a $1 trillion infrastructure spending financed by new tax credits to encourage private equity investors. He plans to deploy $200 billion in federal money over the next decade to "incentivize another $800 billion in spending from state and local authorities and private entities."
That said, the question on investors' mind is: Will infrastructure spending be increased at all? One can roughly gauge that this might be possible. Efforts made by members of the GOP to push through tax reforms are indicative of their legislative intent. More than anything, it is the repute and the goodwill that President Trump and his team would like to maintain.
A leaked draft of Trump's infrastructure policy, published on Axios on Jan 23, 2018, clearly mentions that the administration is not keen on building new roads or highways and taking up "unsustainable projects." The administration instead focuses on improving the conditions of the existing roads and highways. The plan also hints at protecting non-federally funded utilities within the country. Such statements give a clear indication that the citizens will soon witness the passing of the Infrastructure Spending Bill.
Fall in Starts a Momentary Hiccup
The year started with a disappointing reading for housing starts. Per the Department of Commerce, housing starts declined 8.2% in December - its largest percentage drop since November 2016. However, analysts see such a downturn as temporary. Further, housing possibly felt the chill from December's brutally low temperatures.
Also, the 2.4% increase in homebuilding to 1.202 million units in 2017 is one important point to be noted. This is the highest level recorded in a decade. Strong economic growth, a robust labor market and tax cuts are continuing to bolster the housing industry.
Future demand is also likely to remain strong given the shortage in supply of existing homes. Also, homebuilders are not planning more speculative homes. These are units which still do not have a buyer. And this phenomenon has not been witnessed since the last housing boom, which preceded the recession of 2008. ( Read More )
4 Best Stocks to Buy
Market watchers remain optimistic about the construction industry's growth under robust economic conditions. We suggest you consider the following construction stocks to tap the opportunities building up.
These stocks have a favorable Zacks Rank indicating positive estimate revisions, which generally translate into rapid price appreciation. These flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Beacon Roofing Supply, Inc. BECN is the second-largest distributor of residential and non-residential roofing materials in the United States and Canada.
Beacon Roofing has a Zacks Rank #2. The company's projected EPS growth for the current year is 46.41%. The Zacks Consensus Estimate for the current year has improved 7.8% over the last 60 days.
D.R. Horton, Inc. DHI , based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
D.R. Horton carries a Zacks Rank #2. Its projected EPS growth for the current year is 29.01%. The Zacks Consensus Estimate for the current year has improved 9.7% over the last 60 days.
Deere & CompanyDE is the manufacturer and distributor of agriculture, construction and forestry equipment.
The Zacks Rank #2 company's projected EPS growth for the current year is 22.05%.
Fastenal CompanyFAST is a wholesale distributor of industrial and construction supplies in the United States.
Fastenal Company sports a Zacks Rank #1. Its projected EPS growth for the current year is 27.56%. The Zacks Consensus Estimate for the current year has improved 15.5% over the last 60 days.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fastenal Company (FAST): Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Per the latest data by the Bureau of Labor Statistics, the construction industry added as many as 30,000 jobs to the U.S. economy in December, when parts of the country were ravaged by harsh winters. Such strength in spending was the result of increased investments across real estate, commercial and residential projects.
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Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Horton, Inc. (DHI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Such strength in spending was the result of increased investments across real estate, commercial and residential projects.
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Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Such strength in spending was the result of increased investments across real estate, commercial and residential projects.
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Infrastructure Spending to be Beefed Up Optimism regarding growth of the construction industry surged post President Trump's victory as one of his key priorities was infrastructure investment. Meanwhile, a leaked draft of Trump's infrastructure spending plans indicates that the GOP will prioritize improving the existing roads and highways as well as non-federally funded utilities in the country. Such strength in spending was the result of increased investments across real estate, commercial and residential projects.
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c7c8d59f-fcde-48cc-b405-b6debb43715f
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722115.0
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2018-01-30 00:00:00 UTC
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Natural Disasters & TCJA to Hurt Eaton's (ETN) Q4 Earnings
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DE
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https://www.nasdaq.com/articles/natural-disasters-tcja-to-hurt-eatons-etn-q4-earnings-2018-01-30
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nan
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Eaton CorporationETN is slated to report fourth-quarter 2017 financial results before the market opens on Feb 1. The power management company delivered a negative earnings surprise of 0.79% in the last quarter. Let's see how things are shaping up for this earnings season.
Factors to Consider
Eaton expects natural disasters to have an adverse impact of 3 cents on its earnings in the fourth quarter. The company also expects implementation of the Tax Cuts and Jobs Act (TCJA) to result in a one-time tax expense of between $90 million and $110 million and affect fourth-quarter earnings.
The Zacks Consensus Estimate for total revenues of $5,090 million in the quarter reflects a 2.3% drop sequentially. Electric Products segment is a major contributor to Eaton's total revenues. The Zacks Consensus Estimate of $1,826 million for this segment's revenues projects a drop of 1.7% sequentially.
Eaton is expected to benefit from its restructuring initiatives. Improvement in economic conditions is likely to result in 3% to 4% increase in organic revenues.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
Earnings Whispers
Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.
Zacks ESP : The company's Earnings ESP is +0.47%.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Eaton's Zacks Rank #4 (Sell), when combined with a positive Earnings ESP makes a beat unlikely this quarter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks With Favorable Combination
Eaton does not have the right mix but one can consider a few other companies from the Zacks Industrial Products sector that have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an Earnings ESP of +2.65% and a Zacks Rank #2. It is expected to report first-quarter fiscal 2018 earnings on Feb 16. You can see the complete list of today's Zacks #1 Rank stocks here .
Kennametal KMT has an Earnings ESP of +1.89% and a Zacks Rank #2. It is expected to report second-quarter fiscal 2018 earnings on Feb 2.
Graphic Packaging Holding Company GPK has an Earnings ESP of +0.52% and a Zacks Rank #2. It is expected to report fourth-quarter earnings on Feb 6.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. The power management company delivered a negative earnings surprise of 0.79% in the last quarter. Factors to Consider Eaton expects natural disasters to have an adverse impact of 3 cents on its earnings in the fourth quarter.
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Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report To read this article on Zacks.com click here. The power management company delivered a negative earnings surprise of 0.79% in the last quarter.
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Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report To read this article on Zacks.com click here. The power management company delivered a negative earnings surprise of 0.79% in the last quarter.
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Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. The power management company delivered a negative earnings surprise of 0.79% in the last quarter. Factors to Consider Eaton expects natural disasters to have an adverse impact of 3 cents on its earnings in the fourth quarter.
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649f9281-d05a-4ac0-b021-b0ac51aef4b6
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722116.0
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2018-01-30 00:00:00 UTC
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What's in the Cards for Xylem (XYL) This Earnings Season?
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DE
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https://www.nasdaq.com/articles/whats-in-the-cards-for-xylem-xyl-this-earnings-season-2018-01-30
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nan
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nan
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Xylem Inc.XYL is slated to report fourth-quarter 2017 results before the opening bell on Feb 1.
The company pulled off an average positive earnings surprise of 0.37% over the last four quarters. Notably, Xylem's adjusted earnings per share in third-quarter 2017 came in at 65 cents per share, beating the Zacks Consensus Estimate by a penny.
Our proven model predicts that Xylem will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
Zacks ESP & Rank: Xylem has an Earnings ESP of +1.65% and also carries a favorable Zacks Rank #3 (Hold).
Xylem Inc. Price and EPS Surprise
Xylem Inc. Price and EPS Surprise | Xylem Inc. Quote
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
We only caution against stocks with Zacks Ranks #4 and #5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
What's Driving the Better-Than-Expected Earnings?
Xylem believes elevated commercial and residential end-market's demand will bolster revenues of its Applied Water segment in the quarters ahead. Moreover, the new investments made in sales teams and energy efficient products will likely strengthen the segment's near-term performance. The Zacks Consensus Estimate for revenues from Xylem's Applied Water segment is currently pegged at $383 million for fourth-quarter 2017, higher than $354 million recorded in the prior quarter.
The company expects that elevated infrastructure spending of the government authorities in developing countries (like India) and solid demand for state-of-the-art water solutions are anticipated to boost the top-line results of Xylem's Water Infrastructure segment. The Zacks Consensus Estimates for revenues for this segment is pegged at $577 million for the to-be-reported quarter, higher than $520 million recorded in the previous quarter.
Moreover, improved environmental monitoring and smart electric businesses will likely reinforce Xylem's analytics arm and thereby boost the aggregate sales of Xylem's Measurement & Control Solution segment.
Xylem anticipates to generate revenues of $4.7 billion for 2017 (estimating year-over-year growth of 24-25%). Notably, the company estimates organic revenues to be up in the range of 3-4% in the quarter under review.
The company also firmly believes stellar top-line performance, improved productivity and greater cost discipline will bolster its bottom-line results in the quarters ahead. Notably, it anticipates to secure $130 million of cost savings for full-year 2017 (predicting year-over-year increment of 10%). The company projects to report adjusted earnings in the band of $2.39-$2.41 per share for 2017, higher than the previously estimated view of $2.30-$2.40 per share.
Key Picks
Here are some stocks in the Zacks Categorized Industrial Products Sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Deere & Company DE , with an Earnings ESP of +3.29% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Graphic Packaging Holding Company GPK , with an Earnings ESP of +0.52% and a Zacks Rank #2.
Donaldson Company, Inc. DCI , with an Earnings ESP of +3.45% and a Zacks Rank #3.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Xylem Inc. (XYL): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Xylem believes elevated commercial and residential end-market's demand will bolster revenues of its Applied Water segment in the quarters ahead. Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. Our proven model predicts that Xylem will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
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The Zacks Consensus Estimate for revenues from Xylem's Applied Water segment is currently pegged at $383 million for fourth-quarter 2017, higher than $354 million recorded in the prior quarter. Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Xylem Inc. (XYL): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model predicts that Xylem will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
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Key Picks Here are some stocks in the Zacks Categorized Industrial Products Sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat: Deere & Company DE , with an Earnings ESP of +3.29% and a Zacks Rank #2 (Buy). Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Xylem Inc. (XYL): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model predicts that Xylem will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
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The Zacks Consensus Estimate for revenues from Xylem's Applied Water segment is currently pegged at $383 million for fourth-quarter 2017, higher than $354 million recorded in the prior quarter. Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. Our proven model predicts that Xylem will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.
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4c4739a8-d136-49e0-a653-743f6c13e045
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722117.0
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2018-01-29 00:00:00 UTC
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AGCO Rewards Shareholders With 7% Quarterly Dividend Hike
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DE
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https://www.nasdaq.com/articles/agco-rewards-shareholders-with-7-quarterly-dividend-hike-2018-01-29
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nan
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nan
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AGCO Corporation 's AGCO board of directors recently approved a 7% hike in the quarterly common stock dividend. The revised dividend payout now stands at 15 cents per share. The dividend will be paid on Mar 15, to shareholders of record as of Feb 15.
This translates in to a dividend of 60 cents per share on an annualized basis. Based on the closing price of $74.03 as of Jan 26, the raised dividend translates to a yield of 1.2%.
The dividend hike is in sync with AGCO's focus on returning value to shareholders. Over the past three years, the company executed share repurchases worth $1 billion. It expects to fund the repurchase programs with operating cash flow.
AGCO Corporation Price
AGCO Corporation Price | AGCO Corporation Quote
Further, AGCO intends to increase the level of investment to execute its product development plans, resulting in increased capital expenditure and engineering spend in 2017. It reaffirmed the capital expenditure guidance at $200-$225 million and free cash flow band at $225-$250 million for 2017.
Also, AGCO displays strong financial leverage. Its debt/equity ratio of 40% compares favorably with the industry average of 51.6%, indicating a lower debt burden relative to the industry. The company's ROE of 26.3% is higher than the industry average of 23.9%. This reflects that it is more efficient in utilizing shareholder funds compared to peers.
The company's shares have gained 51.7% in the last year compared to 17.4% growth recorded by its industry . The underperformance stemmed from weakness in the agricultural equipment sector.
Zacks Rank & Key Picks
AGCO carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the same sector are Caterpillar Inc. CAT , H&E Equipment Services HEES and Deere & Company DE . While Caterpillar and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have rallied 46.6% in the past six months.
H&E Equipment has a long-term earnings growth rate of 18.6%. The company's shares have gained 82.5% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 33.7% in six months' time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on the closing price of $74.03 as of Jan 26, the raised dividend translates to a yield of 1.2%. A few better-ranked stocks in the same sector are Caterpillar Inc. CAT , H&E Equipment Services HEES and Deere & Company DE . AGCO Corporation 's AGCO board of directors recently approved a 7% hike in the quarterly common stock dividend.
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AGCO Corporation Price AGCO Corporation Price | AGCO Corporation Quote Further, AGCO intends to increase the level of investment to execute its product development plans, resulting in increased capital expenditure and engineering spend in 2017. While Caterpillar and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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AGCO Corporation Price AGCO Corporation Price | AGCO Corporation Quote Further, AGCO intends to increase the level of investment to execute its product development plans, resulting in increased capital expenditure and engineering spend in 2017. While Caterpillar and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company's shares have gained 51.7% in the last year compared to 17.4% growth recorded by its industry . While Caterpillar and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Deere carries a Zacks Rank #2 (Buy). AGCO Corporation 's AGCO board of directors recently approved a 7% hike in the quarterly common stock dividend.
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6b30ede9-32d2-4314-aed0-cfb93c33ffc2
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722118.0
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2018-01-29 00:00:00 UTC
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Is a Beat in Store for Parker-Hannifin (PH) in Q2 Earnings?
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DE
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-parker-hannifin-ph-in-q2-earnings-2018-01-29
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nan
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nan
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Parker-Hannifin CorporationPH is scheduled to report second-quarter fiscal 2018 results before the opening bell on Feb 1.
Parker-Hannifin has an excellent earnings surprise history, with an average positive surprise of 16.6% in the trailing four quarters. The company recorded its ninth consecutive earnings beat in the last reported quarter, surpassing estimates by 10.9%. In the to-be-reported quarter, the company is expected to report strong revenues in Diversified Industrial segment business, which constitutes a significant portion of total revenues.
Let's see how things are shaping up for this announcement.
Factors to Consider
Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken over the past few quarters. The initiatives helped combat weakness in some key regions and also served to strengthen its position in end markets. Moreover, the company is streamlining business and corporate functions as well as removing complex bureaucracy from its organizational structure to create a "leaner" frame. The company has also devised a complimentary business realignment action, which when combined with the simplification initiative, is likely to strengthen the manufacturing footprint, going forward.
Notably, the Zacks Consensus Estimate for revenues from the Diversified Industrial - North America segment in the to-be-reported quarter currently remains high at $1,557 million, reflecting growth of 38.9% year over year. Revenues from Industrial International segment are also anticipated to be strong, with the estimate standing at $1,245 million, compared with reported revenues of $1,006 million in the year ago quarter. Further, the Aerospace segment is anticipated to rise 2.8% year over year to $559 million.
Separately, the company's ardent lookout for strategic acquisitions has enabled it to strengthen core business. The company's recent major investments including the CLARCOR buyout has reinforced the company's filtration product suite, consequently driving recurring revenue growth. Further, other bolt-on acquisitions including Arnold Jäger Holding GmbH's operating units, President Engineering Group Limited and Helac Corporation are anticipated to prove conductive to its top-line growth, in the upcoming quarters as well.
This apart, the company's revamped Win Strategy along with a host of simplification initiatives has helped it attain significant cost savings and expand margins. For instance, the company achieved strong adjusted segment operating margins of 16% in the fiscal first quarter, expanding 60 basis points year over year. This trend is likely to continue for the soon-to-be-reported quarter as well.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Parker-Hannifin in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Zacks ESP: Earnings ESP for the company is -0.52% as the Most Accurate estimate is pegged at $2.05, lower than the Zacks Consensus Estimate of $2.06. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Parker-Hannifin Corporation Price and EPS Surprise
Parker-Hannifin Corporation Price and EPS Surprise | Parker-Hannifin Corporation Quote
Zacks Rank: Parker-Hannifin has a Zacks Rank #2, which increases the predictive power of the ESP. However, the company's ESP of -0.52% makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Deere & Company DE has an Earnings ESP of +3.29% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Kennametal Inc. KMT has an Earnings ESP of +2.21% and a Zacks Rank #2.
Milacron Holdings Corp. MCRN has an Earnings ESP of +1.52% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kennametal Inc. (KMT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Milacron Holdings Corp. (MCRN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, other bolt-on acquisitions including Arnold Jäger Holding GmbH's operating units, President Engineering Group Limited and Helac Corporation are anticipated to prove conductive to its top-line growth, in the upcoming quarters as well. The company recorded its ninth consecutive earnings beat in the last reported quarter, surpassing estimates by 10.9%. Factors to Consider Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken over the past few quarters.
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Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report To read this article on Zacks.com click here. The company recorded its ninth consecutive earnings beat in the last reported quarter, surpassing estimates by 10.9%. Factors to Consider Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken over the past few quarters.
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Stocks to Consider Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +3.29% and a Zacks Rank #2. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report To read this article on Zacks.com click here. The company recorded its ninth consecutive earnings beat in the last reported quarter, surpassing estimates by 10.9%.
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Stocks to Consider Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +3.29% and a Zacks Rank #2. The company recorded its ninth consecutive earnings beat in the last reported quarter, surpassing estimates by 10.9%. Factors to Consider Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken over the past few quarters.
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e57483b2-20b0-4147-ad16-b4a5b247330c
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722119.0
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2018-01-26 00:00:00 UTC
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Lindsay to Gain on Strong Orders Amid Corn-Price Concerns
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DE
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https://www.nasdaq.com/articles/lindsay-to-gain-on-strong-orders-amid-corn-price-concerns-2018-01-26
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nan
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nan
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On Jan 25, we issued an updated research report on Lindsay CorporationLNN . The company's performance will be backed by strong order backlog, latest technology aided products and growth in the U.S. irrigation business. However, its results might be marred by escalating commodity prices.
Strong Order Backlog to Boost Top Line
Lindsay's order backlog at the end of first-quarter fiscal 2018 surged 44% to $80.3 million, reflecting increase in backlog in the Irrigation and Infrastructure segments. The company expects its backlog to grow, backed by the order for the Alex Fraser Bridge project worth around $14 million. Per the contract, Lindsay will install its Road Zipper System on the Alex Fraser Bridge.
New Products to Spur Growth
In the Infrastructure business, several products have been introduced to meet the MASH standards for road-safety hardware. The recent launch of the MAX-Tension End Terminal is in the queue. In the Irrigation business, the company rolled out FieldNET Advisor, which enables growers to maximize profitability through better irrigation management by helping them maximize yield output and crop performance, reduce input costs, and conserve water.
U.S. Irrigation Business Supports Lindsay
In fiscal 2018, Lindsay expects modest growth in the U.S. irrigation business as general economic optimism has contributed to improved sentiment toward investment, particularly in high yield-enhancing equipment. The company also anticipates growth in international markets as well as expansion of some project activity in developing markets.
Higher Commodity Prices to Mar Results
Lindsay's irrigation revenues are highly dependent on the need for irrigated agricultural crop production, which, in turn, depend upon many factors, including commodity prices. As of November 2017, corn prices have flared up roughly 5%. Thus, further escalation in commodity prices will hinder margin performance.
Lindsay belongs to the Zacks Manufacturing Farm industry along with other players like Briggs & Stratton Corporation BGG , Deere & Company DE and AGCO Corporation AGCO .
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's performance will be backed by strong order backlog, latest technology aided products and growth in the U.S. irrigation business. The company expects its backlog to grow, backed by the order for the Alex Fraser Bridge project worth around $14 million. Strong Order Backlog to Boost Top Line Lindsay's order backlog at the end of first-quarter fiscal 2018 surged 44% to $80.3 million, reflecting increase in backlog in the Irrigation and Infrastructure segments.
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The company's performance will be backed by strong order backlog, latest technology aided products and growth in the U.S. irrigation business. Lindsay belongs to the Zacks Manufacturing Farm industry along with other players like Briggs & Stratton Corporation BGG , Deere & Company DE and AGCO Corporation AGCO . Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. Irrigation Business Supports Lindsay In fiscal 2018, Lindsay expects modest growth in the U.S. irrigation business as general economic optimism has contributed to improved sentiment toward investment, particularly in high yield-enhancing equipment. Higher Commodity Prices to Mar Results Lindsay's irrigation revenues are highly dependent on the need for irrigated agricultural crop production, which, in turn, depend upon many factors, including commodity prices. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company's performance will be backed by strong order backlog, latest technology aided products and growth in the U.S. irrigation business. The company expects its backlog to grow, backed by the order for the Alex Fraser Bridge project worth around $14 million. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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6456e769-ea3e-4e86-a5b7-5716bb438bb6
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722120.0
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2018-01-26 00:00:00 UTC
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Notable Friday Option Activity: DE, EBAY, C
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity-de-ebay-c-2018-01-26
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 9,189 contracts has been traded thus far today, a contract volume which is representative of approximately 918,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $150 strike put option expiring February 16, 2018 , with 1,070 contracts trading so far today, representing approximately 107,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange:
eBay Inc. (Symbol: EBAY) saw options trading volume of 40,631 contracts, representing approximately 4.1 million underlying shares or approximately 43.8% of EBAY's average daily trading volume over the past month, of 9.3 million shares. Especially high volume was seen for the $37 strike put option expiring January 18, 2019 , with 5,637 contracts trading so far today, representing approximately 563,700 underlying shares of EBAY. Below is a chart showing EBAY's trailing twelve month trading history, with the $37 strike highlighted in orange:
And Citigroup Inc (Symbol: C) options are showing a volume of 63,831 contracts thus far today. That number of contracts represents approximately 6.4 million underlying shares, working out to a sizeable 42.3% of C's average daily trading volume over the past month, of 15.1 million shares. Especially high volume was seen for the $77.50 strike call option expiring February 16, 2018 , with 7,212 contracts trading so far today, representing approximately 721,200 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
For the various different available expirations for DE options , EBAY options , or C options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That number works out to 44.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $150 strike put option expiring February 16, 2018 , with 1,070 contracts trading so far today, representing approximately 107,000 underlying shares of DE. Especially high volume was seen for the $37 strike put option expiring January 18, 2019 , with 5,637 contracts trading so far today, representing approximately 563,700 underlying shares of EBAY.
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Particularly high volume was seen for the $150 strike put option expiring February 16, 2018 , with 1,070 contracts trading so far today, representing approximately 107,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 40,631 contracts, representing approximately 4.1 million underlying shares or approximately 43.8% of EBAY's average daily trading volume over the past month, of 9.3 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 9,189 contracts has been traded thus far today, a contract volume which is representative of approximately 918,900 underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 9,189 contracts has been traded thus far today, a contract volume which is representative of approximately 918,900 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 40,631 contracts, representing approximately 4.1 million underlying shares or approximately 43.8% of EBAY's average daily trading volume over the past month, of 9.3 million shares. Especially high volume was seen for the $77.50 strike call option expiring February 16, 2018 , with 7,212 contracts trading so far today, representing approximately 721,200 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange: For the various different available expirations for DE options , EBAY options , or C options , visit StockOptionsChannel.com.
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Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 40,631 contracts, representing approximately 4.1 million underlying shares or approximately 43.8% of EBAY's average daily trading volume over the past month, of 9.3 million shares. Especially high volume was seen for the $37 strike put option expiring January 18, 2019 , with 5,637 contracts trading so far today, representing approximately 563,700 underlying shares of EBAY. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 9,189 contracts has been traded thus far today, a contract volume which is representative of approximately 918,900 underlying shares (given that every 1 contract represents 100 underlying shares).
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a6efe98a-f7b6-409c-b6fe-dc4fcf0154a8
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722121.0
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2018-01-25 00:00:00 UTC
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Caterpillar (CAT) Gains on Q4 Earnings Beat, Upbeat '18 View
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DE
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https://www.nasdaq.com/articles/caterpillar-cat-gains-on-q4-earnings-beat-upbeat-18-view-2018-01-25
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nan
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nan
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Caterpillar Inc.CAT reported an impressive surge of 160% year over year in fourth-quarter 2017 adjusted earnings per share to $2.16. Earnings also surpassed the Zacks Consensus Estimate of $1.77 by a margin of 22%. After a string of dismal performances for four years, Caterpillar witnessed a turnaround through 2017 on the back of improving end markets and its relentless focus on cost control. The fourth-quarter performance marked the company's fourth consecutive quarter of both top and bottom-line growth. Consequently, Caterpillar's shares advanced 1.88% in pre-market trading .
Overall for the year, the company delivered an impressive 101% year-over-year improvement in earnings. Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25, which reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments.
Including one-time items, Caterpillar reported a loss per share of $2.18 in the quarter compared with a loss per share of $2.00 in the prior-year quarter. This includes several large adjustments for the impact of U.S. tax reform, restructuring costs, mark-to-market losses for remeasurement of pension and OPEB plans, state deferred tax valuation allowance adjustments, gain on sale of an equity investment in 2017 and a goodwill impairment charge in 2016.
Caterpillar, Inc. Price, Consensus and EPS Surprise
Caterpillar, Inc. Price, Consensus and EPS Surprise | Caterpillar, Inc. Quote
Revenues Improve Across All Regions & Markets
Revenues improved 35% year over year to $12.9 billion in the quarter, surpassing the Zacks Consensus Estimate of $11.9 billion. The company witnessed higher sales volume owing to improved end-user demand and favorable changes in dealer inventories. End-user demand improved across all regions and most end markets.
Higher Sales Drive Improved Profits
In the reported quarter, cost of sales increased 18% year over year to $8.9 billion. Gross profit soared 97% to $4 billion. Selling, general and administrative (SG&A) expenses increased 8% to $1.6 billion. Research and development (R&D) expenses rose 11% year over year to $579 million.
Adjusted profit before taxes were pegged at $1.7 billion, a substantial improvement from $0.6 billion in the prior-year quarter. Higher sales volume, favorable price realization and lower variable manufacturing costs were offset by higher period costs. Variable manufacturing costs were lower in the quarter due to the favorable impact from cost absorption and lower warranty expense. Period costs were higher primarily due to higher short-term incentive compensation expense.
All Segments Deliver Growth
Machinery and Energy & Transportation (ME&T) sales surged 37% year over year to $12.2 billion. Sales of Energy & Transportation gained 22%, owing to higher sales across all applications. Sales at Resource Industries improved 53% due to higher sales volume for both equipment and aftermarket parts as well as favorable price realization. Construction Industries sales rose 47% driven by favorable impact of changes in dealer inventories as well as higher end-user demand for construction equipment. Sales increased across all regions with the North America and Asia/Pacific leading the pack.
The ME&T segment reported an operating profit of $1.09 billion against the operating loss of $1.34 million in the year-ago quarter. At the Energy & Transportation segment, operating profit improved 38% to $881 million due to higher sales volume, partially offset by higher period costs. The Resource Industries reported operating profit of $209 million in the quarter versus $711 million loss incurred in the prior-year quarter thanks to higher sales volume and favorable price realization. Construction Industries' profit soared 151% to $838 million due to favorable price realization, higher sales volume and variable manufacturing efficiencies. However, unfavorable period costs and higher material costs, primarily for steel somewhat negated these gains.
Financial Products' revenues went up 6% to $783 million. Financial Products' profit was $233 million in the quarter up from $149 million in the prior-year quarter. The increase can be attributed to higher gains on sales of securities at Insurance Services and an increase in net yield on average earning assets.
Financial Position
Caterpillar ended 2017 with cash and short-term investments of $8.3 billion, up from $7.2 billion at 2016 end. The debt-to-capital ratio at ME&T was 36.7% as of 2017 end, lower than 41% as of 2016-end, and within the company's target range of 30-45%. Operating cash flow at ME&T was at $5.5 billion in 2017 compared with $3.9 billion in the prior year. In the reported quarter, the company made a discretionary contribution to U.S. pension plans of $1 billion and a payment for early debt retirement of $958 million.
Robust Backlog
At the end of 2017, Caterpillar's backlog was at $15.8 billion, up from $15.4 billion at third-quarter end. The increase was mainly driven by higher backlog Resource Industries. Backlog at Construction Industries remained flat while the company witnessed a decline in backlog at the Energy & Transportation segment. On a year-over-year basis, order backlog improved by about $3.7 billion driven by improvement across both Construction and Resource Industries.
December Retail Sales Update
A day before the earnings release, Caterpillar reported a rise of 34% in global retail sales for the three months ended December 2017. This was driven by improvement across all regions with Construction and Resource industries reporting the best performances in 2017 - a respective 31% and 50%. Sales in the Energy & Transportation segment also rose 19%.
Region wise, Caterpillar's performance in December was led by a surge of 55% in sales in Latin America, followed by an increase of 50% in Asia Pacific sales. Europe, Africa and Middle East ("EAME") sales were up 37%. North America sales rose 23%. Notably, all the regions scaled peak levels in the month.
Fiscal 2017 Results Trumps Guidance, Estimates
Caterpillar's adjusted earnings per share in fiscal 2017 was $6.88 compared with $3.42 in fiscal 2016. Earnings outpaced the Zacks Consensus Estimate of $6.47 as well as the company's guidance of $6.25. Including one-time items, earnings were pegged at $1.26 for the year compared with loss per share of 11 cents in the prior fiscal.
Revenues came in at $45.5 billion that beat the Zacks Consensus Estimate of $44.2 billion and also improved 18% on a year-over-year basis. The company had guided revenues at $44 billion.
Upbeat Guidance for 2018 Initiated
Strong sales momentum resulting from strong order rates, lean dealer inventories and an increasing backlog bode well for an improved 2018 performance. Given these factors, along with positive economic indicators globally and many of the company's end markets, Caterpillar initiated adjusted earnings per share guidance range of $8.25-$9.25 for fiscal 2018. All the segments are expected to log growth in the year.
Over the past year, the Caterpillar stock has underperformed the industry it belongs to. The company has delivered a return of 57%, while the industry grew 72%.
Zacks Rank & Other Key Picks
Caterpillar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Other top-ranked stocks worth considering in the same sector include Deere & Company DE , Alarm.Com Holdings, Inc. ALRM and H&E Equipment Services, Inc. HEES . All three stocks flaunt the same Zacks rank as Caterpillar.
Deere has an expected long-term earnings growth rate of 8.2%. Its shares have appreciated 43% in a year's time.
Alarm.Com Holdings has an expected long-term earnings growth rate of 14.2%. Its shares have gone up 40% in a year's time.
H&E Equipment Services has an expected long-term earnings growth rate of 18.6%. Its shares have surged 57% over the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overall for the year, the company delivered an impressive 101% year-over-year improvement in earnings. Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25, which reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments. This includes several large adjustments for the impact of U.S. tax reform, restructuring costs, mark-to-market losses for remeasurement of pension and OPEB plans, state deferred tax valuation allowance adjustments, gain on sale of an equity investment in 2017 and a goodwill impairment charge in 2016.
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Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25, which reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Overall for the year, the company delivered an impressive 101% year-over-year improvement in earnings.
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Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25, which reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments. Overall for the year, the company delivered an impressive 101% year-over-year improvement in earnings. This includes several large adjustments for the impact of U.S. tax reform, restructuring costs, mark-to-market losses for remeasurement of pension and OPEB plans, state deferred tax valuation allowance adjustments, gain on sale of an equity investment in 2017 and a goodwill impairment charge in 2016.
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Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25, which reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments. Overall for the year, the company delivered an impressive 101% year-over-year improvement in earnings. This includes several large adjustments for the impact of U.S. tax reform, restructuring costs, mark-to-market losses for remeasurement of pension and OPEB plans, state deferred tax valuation allowance adjustments, gain on sale of an equity investment in 2017 and a goodwill impairment charge in 2016.
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4c80ee4c-ceb1-4bff-b006-b6da4702b14a
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722122.0
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2018-01-25 00:00:00 UTC
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Why Now Is the Time to Dig Into Caterpillar Inc. Stock
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DE
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https://www.nasdaq.com/articles/why-now-time-dig-caterpillar-inc-stock-2018-01-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Caterpillar Inc. (NYSE: CAT ) took a page from the Boeing Co (NYSE: BA ) book and it has shrugged off every dip since May 2017. CAT stock came into its earnings event up 65% since then and it's adding a bunch more this morning.
The stock rose 105% on the Donald Trump rally, which just kicked into over-drive. The new Tax law spurred a wave of corporate investing in U.S. employees and infrastructure and therein lies even more support in CAT stock.
The reason for this morning's jump is a plain old fashioned earnings beat and raise. Management over-delivered on their promises for the past quarter and called for even better things to come. So bears are running out of reasons why they should short CAT stock. This makes the upside trajectory easier than down and I want to profit from it once again.
How to Trade CAT Stock
Today's setup is a rinse-and-repeat for me. I've shared several trades that profited from betting on support in CAT stock. I prefer this method to buying the shares outright. Momentum stocks like this rise so fast that they make it difficult to buy and hold as they always seem ready to correct.
Another reason I need to leave room for error when investing in Caterpillar stock is valuation. With a three-digit price-to-earnings ratio it's not cheap. So a lot of expectations are already priced in and its bottom line is iffy at best. Compare it to Cummins Inc. (NYSE: CMI ) or Deere & Company (NYSE: DE ), which have price-to-earnings ratios of 19 and 25, respectively, and better margins.
6 of the Strangest ETFs You Can Buy
Yes, this is a very bullish macroeconomic environment for building equipment and services, but I still worry about unforeseen issues that could arise. So I will use CAT options where I can build a moat around my risk.
On the positive side, and with the CAT stock spike this morning, I bet that analysts will need to raise their price targets on Wall Street. It is now trading too close to the upper end of the range.
Furthermore, most of the experts have been in a holding pattern so they may also need to upgrade that as well. I doubt that many of them will take an uber positive note from management as a sign to downgrade.
The bottom line is that the new tax law kicked this expansion period into over drive and CAT management told us things were great in the past quarter and even better going forward. So I want to bet on support to profit from this.
3 Trades to Generate $1,000 Every Month Selling Puts
The Trade: Sell the CAT Aug $135 naked put. This is a bullish trade where I collect $2.50 to open. Here, I have 85% theoretical odds of success. But if the price falls below my strike, then I accrue losses below $132.50-per-share.
Selling naked puts carries big risk, especially for a stock as expensive as this. For those who want to mitigate it, they can sell a spread instead.
The Alternate Trade: Sell the CAT Aug $135/$130 bull put spread, where there is the same odds of winning. Then the spread would yield 10% on risk.
It is important to note that today's trade doesn't need a rally to profit. I simply need support for CAT stock to hold for the near-term. Time will do the rest and chip away at the premium in my favor.
Ultimately, investing in stocks is fraught with danger, so I never risk more than I am willing to lose.
Get Nicolas Chahine's newsletter for free here . He is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post Why Now Is the Time to Dig Into Caterpillar Inc. Stock appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the positive side, and with the CAT stock spike this morning, I bet that analysts will need to raise their price targets on Wall Street. Management over-delivered on their promises for the past quarter and called for even better things to come. This makes the upside trajectory easier than down and I want to profit from it once again.
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3 Trades to Generate $1,000 Every Month Selling Puts The Trade: Sell the CAT Aug $135 naked put. The Alternate Trade: Sell the CAT Aug $135/$130 bull put spread, where there is the same odds of winning. Management over-delivered on their promises for the past quarter and called for even better things to come.
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I've shared several trades that profited from betting on support in CAT stock. 3 Trades to Generate $1,000 Every Month Selling Puts The Trade: Sell the CAT Aug $135 naked put. Management over-delivered on their promises for the past quarter and called for even better things to come.
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I've shared several trades that profited from betting on support in CAT stock. It is important to note that today's trade doesn't need a rally to profit. Management over-delivered on their promises for the past quarter and called for even better things to come.
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0dd1b28a-589a-4628-83f5-2073137b0ccd
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722123.0
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2018-01-25 00:00:00 UTC
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Caterpillar Inc. Is on the Right Track, Regardless of Report
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DE
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https://www.nasdaq.com/articles/caterpillar-inc-right-track-regardless-report-2018-01-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you're looking for the best way to play the global economic rebound, sparked by tax cuts in the United States, Caterpillar Inc. (NYSE: CAT ) is one way to go.
That's the general consensus from expert stock-pickers anyway. A couple of key upgrades of CAT stock, along with a pair of increased price targets just within the past month, have bolstered an already amazing rally. All told, Caterpillar stock has gained 73% over the course of the past year, heading into Thursday morning's earnings report.
Too much bullishness? Nothing left for an encore? It's admittedly an intimidating move in front of a quarterly-results release. On the flipside, from valuation perspective, the big move simply puts CAT stock back where it needs to be.
10 Super Bowl Stocks to Buy and Sell
Analysts Agree on CAT
There's a good chance that by the time you're reading this, Caterpillar will have already dished out its fiscal fourth-quarter 2017 numbers. There's also a good chance CAT stock has already made a big move in response - up or down. Either way, while the use of common sense is always prudent when picking an entry price, any post-earnings volatility will be irrelevant just a few days from now. After that, it's still ultimately about long-term earnings growth.
To that end, Seaport Global thinks there's plenty of that in the cards. The organization raised its opinion on Caterpillar to a "buy" this week. It upped its target on CAT to $195, expecting "high-single-digit if not double-digit revenue growth in 2018."
Were it just Seaport, the optimism might be dismissible. It's not just Seaport though.
JPMorgan analyst Ann Duignan also recently upped her opinion of Caterpillar stock, calling it a "overweight" and suggesting shares are worth $200 apiece. Her hot button was the recently-instituted lower tax rates. But Duignan also believes we're in the early stages of a long-term cycle that favors resources like coal, gold, oil, metals and more.
More Upturn for CAT
That's a cyclical uptrend many investors may not see, by the way. As Berenberg analyst Rizk Maidi wrote last week, "Just as the mining downturn was more severe than expected, we believe the amplitude of the current upturn is underappreciated … CAT's mining original equipment (OE) and aftermarket revenues are depressed beyond normal and are set to grow at 25% (compound annual growth rate) through 2020 to make up for five years of under-investments."
It's a premise that jibes with observations from Seaport Global's analysts Michael Shlisky and Jordan Bender. They based much of their optimism on the notion that inventory levels of equipment are too low to meet actual demand.
Indirect rival Deere & Company (NYSE: DE ) is experiencing a similar cyclical tailwind.
Analyst opinions about a particular company can be misguided. And a company's guidance offered to investors can be self-serving. But external data speaks for itself. And the external tailwinds in favor of Caterpillar are undeniable.
One of those tailwinds is a weak - and weakening - U.S. dollar.
Falling Dollar Good for CAT
The U.S. Dollar Index reached a three-year low this week, and is still headed lower. Though the headlines are superficially troubling, as Treasury Secretary Steven Mnuchin explained this week , that bodes well for exporters like Caterpillar as it makes its equipment more affordable to overseas buyers. It matters to current and would-be owners of CAT stock, since more than half its business is driven by foreign customers .
The falling dollar doesn't just make its heavy equipment cheaper to overseas buyers though. It also lifts the price of commodities like gold and oil. Those are two industries that need big earth-moving equipment.
Ditto for the iron, copper and coal mining industries just to name a few - industries which, by the way, have also mostly enjoyed higher prices for their respective resources. Iron ore pellet prices are up nearly 20% for the past year , while copper prices are up just a little less . Both remain in uptrends though, driven largely by the fundamentals. That is, economic growth is inducing consumption. The United States has seen annualized gross domestic product growth in excess of 3.0% for two quarters in a row - for the first time since 2014 - and this week's initial look at Q4's GDP growth rate is expected to be on par with the last couple of readings.
It's the kind of environment that encourages purchases of major assets like bulldozers and dump trucks.
Still, a 73% runup over the course of the past 12 months?
Bottom Line for CAT Stock
Don't sweat it. Caterpillar has worked its way out of a financial hole in recent quarters. And where it's been for the past year isn't where it's going to be a year from now. Its current earnings trajectory translates into a forward-looking P/E of 21.3 , which is a price that's plenty palatable, given all the details, and in the context of all the tailwinds.
That's not to suggest CAT stock won't tumble after its fourth-quarter report, nor is it to suggest Caterpillar will be a buy should it soar following Thursday morning's release. It is to say, however, that no matter the short-term response to that news, Caterpillar is on the right path.
7 Millennial-Favorite Stocks for Young Investors to Buy
The only real question is finding the optimal entry point.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter , at @jbrumley.
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The post Caterpillar Inc. Is on the Right Track, Regardless of Report appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though the headlines are superficially troubling, as Treasury Secretary Steven Mnuchin explained this week , that bodes well for exporters like Caterpillar as it makes its equipment more affordable to overseas buyers. A couple of key upgrades of CAT stock, along with a pair of increased price targets just within the past month, have bolstered an already amazing rally. On the flipside, from valuation perspective, the big move simply puts CAT stock back where it needs to be.
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A couple of key upgrades of CAT stock, along with a pair of increased price targets just within the past month, have bolstered an already amazing rally. On the flipside, from valuation perspective, the big move simply puts CAT stock back where it needs to be. There's also a good chance CAT stock has already made a big move in response - up or down.
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As Berenberg analyst Rizk Maidi wrote last week, "Just as the mining downturn was more severe than expected, we believe the amplitude of the current upturn is underappreciated … CAT's mining original equipment (OE) and aftermarket revenues are depressed beyond normal and are set to grow at 25% (compound annual growth rate) through 2020 to make up for five years of under-investments." A couple of key upgrades of CAT stock, along with a pair of increased price targets just within the past month, have bolstered an already amazing rally. On the flipside, from valuation perspective, the big move simply puts CAT stock back where it needs to be.
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There's also a good chance CAT stock has already made a big move in response - up or down. A couple of key upgrades of CAT stock, along with a pair of increased price targets just within the past month, have bolstered an already amazing rally. On the flipside, from valuation perspective, the big move simply puts CAT stock back where it needs to be.
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ce62ac6c-e4ad-4906-bc29-f82c532de0c3
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722124.0
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2018-01-24 00:00:00 UTC
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Manitowoc to Grow on Strategic Initiatives Despite Headwinds
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DE
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https://www.nasdaq.com/articles/manitowoc-to-grow-on-strategic-initiatives-despite-headwinds-2018-01-24
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nan
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nan
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On Jan 24, we issued an updated research report on The Manitowoc Company Inc.MTW . The company is making significant progress in the implementation of The Manitowoc Way to drive four key strategic priorities that will help sustain long-term margin expansion. It will gain from the rising demand in the Americas' energy and commercial construction markets. However, excess inventory due to cancellation of an order in India, higher input costs (particularly steel) will thwart near-term results.
After incurring losses for three straight quarters, which bore the brunt of weak crane demand, the company returned to profitability in the second quarter of 2017. The momentum continued in the third quarter as well. This better-than-expected performance can be attributable to the company's efforts toward consolidating the manufacturing footprint and reducing cost of organizational structure. Additionally, the results were backed by improved U.S. energy and commercial construction markets that helped offset persisting weakness in U.S. large infrastructure, Asia Pacific and the Middle East.
Third-quarter orders increased 21% year over year to $376 million and the company ended the quarter with a robust backlog of $467.9 million, up 32% year over year. This bodes well for an improved fourth-quarter performance. The Zacks Consensus Estimate for the fourth quarter is currently pegged at a loss of 6 cents per share, a substantial improvement from the loss of 92 cents in the prior-year quarter.
Near-Term Headwinds Remain
Manitowoc declared a cancelation of an order in India worth about $18 million. After the customer took partial delivery of the order, the Indian government implemented a regulation change forbidding the import of the left-handed driven vehicles in the particular crane segment. Manitowoc will try to market this excess inventory in the fourth quarter. Further, the fourth quarter is historically a lower sequential margin quarter due to fewer working days.
Moreover, continuing weakness in mobile cranes and commercial construction projects are significantly hurting Manitowoc. Some key international APAC markets remain weak (except Australia). The Middle East remains challenging because of geopolitical uncertainties. Increased material costs, particularly steel as well as constraints in the supply chain are likely affect Manitowoc's results in the near term.
The company is facing stiff competition from China-based crane manufacturers. These crane manufacturers have undergone product-line expansion, primarily adding larger cranes, and captured growing shares of the export markets in Asia, Africa, the Middle East and South America.
Poised Well on The Manitowoc Way
Despite near-term headwinds, the company is poised well for the long term as evident from its significant progress in the implementation of The Manitowoc Way to boost the four key strategic priorities - margin expansion, growth, innovation and velocity - that are likely to aid in delivering double-digit margin growth in the long term.
Margin Expansion Remains the First Priority: To deliver improvement in margins, the company remains focused on controlling cost, reducing headcount, increasing productivity and eliminating waste. Moreover, it continues to align manufacturing capacity to match the current levels of demand.
Improving Competitive Position to Gain Market Share: The company is focusing on not only designing quality and reliability of it products but also in the process of manufacturing cranes. To drive growth, Manitowoc has also taken efforts to strengthen distribution network. Meanwhile, to ensure growth, the company implemented key account management on a global basis this year, which has already started reaping benefits. Evidently, Manitowoc received an order from a large crane operator in Poland that will be shipped in the fourth quarter. Previously, the company had received an order from this same operator in 2008.
Innovation Holds the Key: Manitowoc continues to focus on new product development to remain competitive. It also has hiked production and delivery of its newly developed TMS 9000-2 truck-mounted cranes. The product has received strong customer response and is gaining market share. While the latest product in the company's pipeline continues to be strong, it remains on track to introduce four new mobile products in June 2018.
Increasing velocity in all business processes: The company is striving to reduce the number of days it takes to complete an activity from design through manufacturing significantly.
Consequently, Manitowoc's long-term outlook remains strong. In addition, it continues to be committed toward reaching its target of double-digit operating margins with 150-200 basis points of improvement year over year. In fact, the company anticipates achieving long-term target of double-digit operating margins by 2020 through continued streamlining organizational structure.
Over the past six months, Manitowoc has outperformed the industry with respect to price performance on the back of improved results. While the stock gained around 72.4%, the industry recorded growth of 48.9%.
Manitowoc currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar Inc. CAT . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 32% in the past year.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The company's shares have appreciated 82.8% in a year.
Caterpillar has a long-term earnings growth rate of 10.3%. The stock has gained 48% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After the customer took partial delivery of the order, the Indian government implemented a regulation change forbidding the import of the left-handed driven vehicles in the particular crane segment. It will gain from the rising demand in the Americas' energy and commercial construction markets. However, excess inventory due to cancellation of an order in India, higher input costs (particularly steel) will thwart near-term results.
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Margin Expansion Remains the First Priority: To deliver improvement in margins, the company remains focused on controlling cost, reducing headcount, increasing productivity and eliminating waste. While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Third-quarter orders increased 21% year over year to $376 million and the company ended the quarter with a robust backlog of $467.9 million, up 32% year over year. Poised Well on The Manitowoc Way Despite near-term headwinds, the company is poised well for the long term as evident from its significant progress in the implementation of The Manitowoc Way to boost the four key strategic priorities - margin expansion, growth, innovation and velocity - that are likely to aid in delivering double-digit margin growth in the long term. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Innovation Holds the Key: Manitowoc continues to focus on new product development to remain competitive. It will gain from the rising demand in the Americas' energy and commercial construction markets. However, excess inventory due to cancellation of an order in India, higher input costs (particularly steel) will thwart near-term results.
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e5e37a66-08ad-45e3-a9fa-51f9f7f0c9d1
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722125.0
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2018-01-24 00:00:00 UTC
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Rockwell Automation (ROK) Tops Q1 Earnings, Revises Outlook
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DE
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https://www.nasdaq.com/articles/rockwell-automation-rok-tops-q1-earnings-revises-outlook-2018-01-24
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Rockwell Automation Inc.ROK reported adjusted earnings per share of $1.96 in first-quarter fiscal 2018 (ended Dec 31, 2017), up 12% from $1.75 recorded in the prior-year quarter. The year-over-year performance was driven by elevated sales, partially offset by higher investment spending. Earnings also surpassed the Zacks Consensus Estimate of $1.74.
Including one-time items, the company recorded a loss of $1.84 per share, compared to earnings of $1.65 per share reported in the year-ago quarter.
Total revenues came in at $1.59 billion in the quarter, up 6.5% year over year. Revenues, however, missed the Zacks Consensus Estimate of $1.60 billion. Organic sales rose 5.3%. Foreign currency translations boosted sales by 2.5%, while divestitures in the prior year reduced sales by 1.3%.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. Price, Consensus and EPS Surprise | Rockwell Automation, Inc. Quote
Operational Update
Cost of sales increased 4.9% year over year to $889.5 million. Gross profit inched up 0.6% to $697 million from $642 million reported in the year-ago quarter. Selling, general and administrative expenses flared up 5.2 % to $389.3 million.
Consolidated segment operating income was $355.5 million, up 12.3% from $316.6 million recorded in the prior-year quarter. Segment operating margin was 22.4% in the reported quarter, a 120-basis-point expansion from the year-earlier quarter due to higher sales, partially offset by higher investment spending.
Segment Results
Architecture & Software: Net sales rose 7.3% year over year to $746.9 million in the fiscal first quarter. Organic sales were up 4.6% and currency translation bolstered sales by 2.7%. Segment operating earnings were $224.6 million compared with $208.6 million recorded in the prior year. Segment operating margin was 30.1% compared with 30.0% witnessed in the year-ago quarter.
Control Products & Solutions: Net sales climbed 5.8% to $839.7 million in the reported quarter. Organic sales increased 5.9%, currency translation boosted sales by 2.3%, and the prior-year divestiture reduced sales by 2.4%. Segment operating earnings increased 21% to $131 million from $108 million in the year-ago quarter. Segment operating margin came in at 15.6% compared with 13.6% recorded in the prior-year quarter.
Financials
As of Dec 31, 2017, cash and cash equivalents were $1,547 million, up from $1,411 million as of Sep 30, 2017. As of Dec 31, 2017, total debt was $2,079 million, up from $1,844 million as of Sep 30, 2017.
Cash flow from operations came in at $212.7 million in the reported quarter compared with $310.8 million recorded in the year-ago quarter. Return on invested capital was 40.8% as of Dec 31, 2017, up from 34.6% as of Dec 31, 2016.
During the fiscal first quarter, Rockwell Automation repurchased 1.1 million shares for $208.6 million. As of Dec 31, 2017, $399.8 million remained available under the Apr 6, 2016 share repurchase authorization. On Jan 15, 2018, the board of directors authorized the company to expend up to an additional $1 billion to repurchase shares.
Guidance
Rockwell Automation revised its fiscal 2018 guidance. The company raised its adjusted EPS guidance to the range of $7.60-$7.90 from the prior band of $7.20-$7.50. However, the company lowered its reported sales growth outlook range to 4.5-7.5% from the previous range of 5-8%.
Rockwell Automation expects to benefit from expanded product offering and strong customer relationships. Its strategic focus on the Connected Enterprise and substantial investments in technology will steer growth. The company is well positioned to benefit from attractive opportunities in the industrial automation and information market.
Share Price Performance
Rockwell Automation's shares have underperformed the industry in the past year. The company's shares have appreciated 33.8%, while the industry recorded 34.1% growth.
Zacks Rank & Key Picks
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector are iRobot Corporation IRBT , Deere & Company DE and TriMas Corporation TRS , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
iRobot Corporation has a long-term earnings growth rate of 20%. Its shares have gained 4.3%, over the past six months.
Deere has a long-term earnings growth rate of 8.2%. The company's shares have rallied 31.8% during the same time frame.
TriMas Corporation has a long-term earnings growth rate of 5%. The stock has gained 26.2% in six months' time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
TriMas Corporation (TRS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rockwell Automation Inc.ROK reported adjusted earnings per share of $1.96 in first-quarter fiscal 2018 (ended Dec 31, 2017), up 12% from $1.75 recorded in the prior-year quarter. Rockwell Automation expects to benefit from expanded product offering and strong customer relationships. Including one-time items, the company recorded a loss of $1.84 per share, compared to earnings of $1.65 per share reported in the year-ago quarter.
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Better-ranked stocks in the same sector are iRobot Corporation IRBT , Deere & Company DE and TriMas Corporation TRS , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report TriMas Corporation (TRS): Free Stock Analysis Report To read this article on Zacks.com click here. Rockwell Automation Inc.ROK reported adjusted earnings per share of $1.96 in first-quarter fiscal 2018 (ended Dec 31, 2017), up 12% from $1.75 recorded in the prior-year quarter.
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Cash flow from operations came in at $212.7 million in the reported quarter compared with $310.8 million recorded in the year-ago quarter. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report TriMas Corporation (TRS): Free Stock Analysis Report To read this article on Zacks.com click here. Rockwell Automation Inc.ROK reported adjusted earnings per share of $1.96 in first-quarter fiscal 2018 (ended Dec 31, 2017), up 12% from $1.75 recorded in the prior-year quarter.
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Share Price Performance Rockwell Automation's shares have underperformed the industry in the past year. The company's shares have appreciated 33.8%, while the industry recorded 34.1% growth. Rockwell Automation Inc.ROK reported adjusted earnings per share of $1.96 in first-quarter fiscal 2018 (ended Dec 31, 2017), up 12% from $1.75 recorded in the prior-year quarter.
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8987948a-dfc4-45c1-8591-14fe1d99687a
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722126.0
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2018-01-24 00:00:00 UTC
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Pentair (PNR) to Post Q4 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/pentair-pnr-to-post-q4-earnings%3A-whats-in-the-offing-2018-01-24
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Pentair plcPNR is scheduled to report fourth-quarter 2017 results before the opening bell on Jan 30. The company's results for the quarter are anticipated to benefit from strong performance of the Filtration & Process business. However, results might bear the impact of hurricanes.
Last quarter, the company's adjusted earnings surpassed the Zacks Consensus Estimate by more than 2%. Notably, Pentair's earnings have surpassed estimates in three out of the trailing four quarters, with an average positive earnings surprise of 3.89%.
Let's see how things are shaping up for Q4 earnings.
Pentair PLC. Price and EPS Surprise
Pentair PLC. Price and EPS Surprise | Pentair PLC. Quote
Factors at Play
Pentair guided that adjusted EPS for the fourth quarter will be 93 cents, reflecting an increase of around 19% from fourth-quarter 2016. The company projects revenues to be $1.24 billion, up around 4% on a reported basis, and 1% on a core basis, compared to the fourth-quarter 2016 revenues.
Notably, Pentair estimates full-year 2017 adjusted EPS to be $3.53 and revenues to be roughly $4.9 billion. In the Filtration & Process business, the company continues to witness strength in the residential and commercial sector, and especially in food service. However, the company expects that headwinds in the energy and infrastructure businesses might impact the quarterly performance.
Pentair's Aquatic Systems business will bear the brunt of the impact of hurricanes in the fourth quarter. Although material inflation remains a headwind, the company continues to drive productivity and pricing actions to help mitigate this impact.
Our consensus estimates indicate that segment income of Pentair's Water Quality segment will reach $134 million in the to-be-reported quarter, relecting an year over year growth of 11.7%. The Zacks Consensus Estimate for segment income for the Electrical segment is pegged at $116 million for the quarter, representing an year over year improvement of 12.4%.
The company's price performance has not been impressive. Its shares have gained 21.5% in a year's time, underperforming 30.3% growth recorded by the industry it belongs to.
Earnings Whispers
Our proven model shows that Pentair is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Zacks ESP: The Earnings ESP for Pentair is +0.31%. This is because the Most Accurate estimate of 94 cents comes in higher than the Zacks Consensus Estimate of 93 cents. A favorable Earnings ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Pentair currently carries a Zacks Rank #3. It should be noted that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings.
Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.
The combination of Pentair's Zacks Rank #3 and Earnings ESP of +0.31% makes us confident of a likely earnings beat.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
iRobot Corporation IRBT , with an Earnings ESP of +17.65% and a Zacks Rank #1. Its shares have gained 4.3%, over the past six months. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company DE , with an Earnings ESP of +3.29% and a Zacks Rank #1. The company's shares have been up 31.8% during the same time frame.
Briggs & Stratton Corporation BGG , with an Earnings ESP of +10.29% and a Zacks Rank #1. The stock has gained 10.6% in six months' time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
Pentair PLC. (PNR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Quote Factors at Play Pentair guided that adjusted EPS for the fourth quarter will be 93 cents, reflecting an increase of around 19% from fourth-quarter 2016. In the Filtration & Process business, the company continues to witness strength in the residential and commercial sector, and especially in food service. Its shares have gained 21.5% in a year's time, underperforming 30.3% growth recorded by the industry it belongs to.
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Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Pentair PLC. Quote Factors at Play Pentair guided that adjusted EPS for the fourth quarter will be 93 cents, reflecting an increase of around 19% from fourth-quarter 2016. In the Filtration & Process business, the company continues to witness strength in the residential and commercial sector, and especially in food service.
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The combination of Pentair's Zacks Rank #3 and Earnings ESP of +0.31% makes us confident of a likely earnings beat. Stocks to Consider Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: iRobot Corporation IRBT , with an Earnings ESP of +17.65% and a Zacks Rank #1. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Pentair PLC.
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Stocks to Consider Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: iRobot Corporation IRBT , with an Earnings ESP of +17.65% and a Zacks Rank #1. Quote Factors at Play Pentair guided that adjusted EPS for the fourth quarter will be 93 cents, reflecting an increase of around 19% from fourth-quarter 2016. In the Filtration & Process business, the company continues to witness strength in the residential and commercial sector, and especially in food service.
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1c25c0ff-5559-40b4-8cc8-8247584d9acd
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722127.0
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2018-01-24 00:00:00 UTC
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3 Construction Stocks to Buy As U.S. Building Heats Up
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DE
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https://www.nasdaq.com/articles/3-construction-stocks-buy-us-building-heats-2018-01-24
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nan
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After a strong 2017 for the construction industry and most signs pointing to continued growth, it might be a great time to jump on some construction and homebuilding industry stocks.
Three-quarters of U.S. construction firms plan to increase their payrolls in 2018, according to a new survey from the Associated General Contractors of America. Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects.
"Construction firms appear to be very optimistic about 2018 as they expect demand for all types of construction services to continue to expand," Associated General Contractors of America CEO Stephen E. Sandherr said in a statement .
"This optimism is likely based on current economic conditions, an increasingly business-friendly regulatory environment and expectations the Trump administration will boost infrastructure investments."
With that said, let's take a look at three construction stocks that investors might want to scoop up before the spring-time building boom really picks up.
1. Fastenal Company FAST
Last week, this industrial and construction supply wholesale giant posted Q4 sales that climbed 14.8% year-over-year. Fastenal's strong fourth-quarter helped its shares climb to a new all-time high of $56.73 per share on Wednesday. However, it doesn't seem like the company will have a hard time breaking into a new range as its growth is expected to continue.
Looking ahead to the first quarter of 2018, Fastenal is projected to see its revenues surge 10.63% to hit $1.16 billion, based on our current Zacks Consensus Estimates. Earnings are expected to jump by 30.43% in the quarter. Fastenal is currently a Zacks Rank #2 (Buy) and sports "A" grades for both Growth and Momentum in our Styles Scores system.
On top of all of this, the company has earned six upward earnings estimate revisions against no downgrades for its current quarter, against no downgrades, all within the last 60 days. During this same time period, Fastenal earned a nine to zero ratio for its full year, as it seems analysts are indeed projecting a big year for this construction industry firm.
2. Caterpillar CAT
Shares of this construction industry titan are currently hovering around their all-time high as investors anticipate strong fourth-quarter results from CAT, which is set to report Q4 earnings Thursday morning before the opening bell.
Caterpillar is expected to see its Q4 EPS skyrocket 113% to hit $1.77, while its sales are projected to pop by 24%, based on current Zacks Consensus Estimates. These estimates take into account the massive construction industry gains at the close of 2017 that saw total construction spending hit a record $1.257 trillion in November, according to the Commerce Department. If these estimates are topped or matched-which CAT has done in 15 of the last 16 quarters, including the trailing 11 periods-shares of the construction icon are likely to fly into a new range.
CAT is currently a Zacks Rank #2 (Buy) and looks poised to benefit from the 2018 construction industry expansion.
3. Deere & Company DE
Shares of this manufacturing and construction equipment firm have soared 26.93% in the last 12 weeks and currently rest just below their all-time high. Deere's recent climb comes after the company posted strong Q4 results in late November. Looking ahead, investors should note that 2018 is projected to be another great year for Deere.
Within the last 60 days, Deere has earned eight upward earnings estimate revisions for its current full-year against no downgrades. What's more, the company has topped or matched earnings estimates every quarter for the last four years.
Deere is currently a Zacks Rank #1 (Strong Buy) and rocks an overall "B" VGM score, supported by "B" grades for Value and Momentum in our Style Scores system. In its upcoming quarter, Deere is projected to see its earnings reach $1.13 per share, which would mark an 85.25% year-over-year jump. On top of this EPS growth projection, Deere's sales are expected surge over 36% to reach $6.40 billion.
Looking even further down the road, the company is expected to see both its top and bottom-line grow by over 22% during its full fiscal 2018-and these might only go up if the U.S. construction industry expansion predictions prove true.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fastenal Company (FAST): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company DE Shares of this manufacturing and construction equipment firm have soared 26.93% in the last 12 weeks and currently rest just below their all-time high. Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects.
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Click to get this free report Fastenal Company (FAST): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects.
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Click to get this free report Fastenal Company (FAST): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects.
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Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects. "Construction firms appear to be very optimistic about 2018 as they expect demand for all types of construction services to continue to expand," Associated General Contractors of America CEO Stephen E. Sandherr said in a statement .
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7d9e9b9e-b3ba-4800-9d8e-9a7512f5b59e
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722128.0
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2018-01-24 00:00:00 UTC
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Grainger (GWW) Q4 Earnings, Revenues Beat on Higher Volumes
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DE
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https://www.nasdaq.com/articles/grainger-gww-q4-earnings-revenues-beat-on-higher-volumes-2018-01-24
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W.W. Grainger, Inc. 's GWW fourth-quarter 2017 adjusted earnings per share of $2.94 came in higher than the prior-year figure of $2.45 by 20%. Further, earnings beat the Zacks Consensus Estimate of $2.18 by wide margin of 35%. The company witnessed strong volumes in its U.S. business driven by strategic pricing initiatives as well as an improving demand environment. Grainger's shares gained 12.71% in pre-market trading .
Including one-time items such as restructuring charges and other charges, earnings came in at $2.63 per share in the reported quarter, up 160% from $1.01 in the year-ago quarter.
Operational Update
Grainger reported revenues of $2,632 million, up 6.5% from the prior-year quarter figure of $2,471 million, driven by an increase of 11 percentage point (pp) from volume growth. This was partly offset by a decline of 3 pp in price and 1 pp from the divestiture of a specialty business in the United States in mid-July. The figure also beat the Zacks Consensus Estimate of $2,568 million. There were 63 selling days in the reported quarter, same as in fourth-quarter 2016.
Cost of sales increased 8.8% year over year to $1,611 million. Gross profit increased 3% to $1,021 million from $990 million recorded in the year-ago quarter. Gross margin contracted 130 basis points (bps) to 38.8%.
Grainger's adjusted operating income in the quarter increased 4% to $285 million from $275 million recorded in the prior-year quarter. Adjusted operating margin fell 30 bps to 10.8% in the quarter from 11.1% in the year-earlier quarter.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. Price, Consensus and EPS Surprise | W.W. Grainger, Inc. Quote
Segment Performance
Revenues for the U.S. segment rose 5% year over year to $1,991 million, resulting from 11 pp increase from volume partially offset by declines of 5 pp from price and 1 pp from the divestiture of a specialty business. Adjusted operating income for the segment decreased 1% year over year to $299 million.
Revenues of $189 million from the Canada segment increased 4.5% in U.S. dollars. The increase consisted of 5 pp from favorable foreign exchange and 4 pp increase from price, partially negated by 4 pp decrease from volume. The segment reported an adjusted operating loss of $4.3 million compared with a loss of $10.7 million incurred in the prior-year quarter.
Revenues from Other businesses (which include Asia, Europe and Latin America) climbed 16% year over year to $559 million primarily driven by MonotaRO in Japan and Zoro in the United States. The segment's adjusted operating profit improved 51% to $25 million from $17 million recorded in the comparable period last year.
Financial Position
Grainger had cash and cash equivalents of $327 million at the end of 2017 compared with $274 million at the end of 2016. Cash provided by operating activities increased to $1.1 billion in fiscal 2017, compared with $1.0 billion in the prior year.
As of 2017-end, the company's long-term debt increased to $2.25 billion compared with $1.84 billion at the end of 2016. During 2017, the company returned $910 million in cash to shareholders through $304 million in dividends and $605 million to buy back 3 million shares.
Fiscal 2017 Performance
Grainger's adjusted earnings per share edged down 1% year over year to $11.46 in fiscal 2017. Earnings outpaced the Zacks Consensus Estimate of $10.71. Revenues came in at $10.4 billion that beat the Zacks Consensus Estimate of $10.36 and also improved 3% on a year-over-year basis.
Guidance
To reflect lower corporate taxes due to U.S. tax legislation and better-than-expected 2017 results, Grainger raised earnings per share guidance for 2018. The company maintains sales growth guidance in the range of 3-7%.
Earnings per share for 2018 is now projected at $12.95-$14.15, up from the previous range of $10.60-$11.80. The increase in the guidance factors in a 50 cents contribution from better-than-expected 2017 operating performance, a $2.15 benefit from a lower corporate tax rate under U.S. tax legislation and 6 cents from incremental share buybacks funded by the benefits of the tax legislation. However, these gains will be partially offset by 10 cents of lower benefits from clean energy investments and 26 cents in increased investment in the business funded by the gains of the tax legislation.
Share Price Performance
In the past six months, Grainger outperformed the industry with respect to price performance. The stock gained 56.6%, compared with industry's growth of 27.7%.
Zacks Rank
Grainger currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar Inc. CAT . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 32% in the past year.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The company's shares have appreciated 82.8% in a year.
Caterpillar has a long-term earnings growth rate of 10.3%. The stock has gained 48% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company witnessed strong volumes in its U.S. business driven by strategic pricing initiatives as well as an improving demand environment. W.W. Grainger, Inc. Price, Consensus and EPS Surprise W.W. Grainger, Inc. Price, Consensus and EPS Surprise | W.W. Grainger, Inc. Quote Segment Performance Revenues for the U.S. segment rose 5% year over year to $1,991 million, resulting from 11 pp increase from volume partially offset by declines of 5 pp from price and 1 pp from the divestiture of a specialty business. Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar Inc. CAT .
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W.W. Grainger, Inc. Price, Consensus and EPS Surprise W.W. Grainger, Inc. Price, Consensus and EPS Surprise | W.W. Grainger, Inc. Quote Segment Performance Revenues for the U.S. segment rose 5% year over year to $1,991 million, resulting from 11 pp increase from volume partially offset by declines of 5 pp from price and 1 pp from the divestiture of a specialty business. The increase in the guidance factors in a 50 cents contribution from better-than-expected 2017 operating performance, a $2.15 benefit from a lower corporate tax rate under U.S. tax legislation and 6 cents from incremental share buybacks funded by the benefits of the tax legislation. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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W.W. Grainger, Inc. Price, Consensus and EPS Surprise W.W. Grainger, Inc. Price, Consensus and EPS Surprise | W.W. Grainger, Inc. Quote Segment Performance Revenues for the U.S. segment rose 5% year over year to $1,991 million, resulting from 11 pp increase from volume partially offset by declines of 5 pp from price and 1 pp from the divestiture of a specialty business. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Further, earnings beat the Zacks Consensus Estimate of $2.18 by wide margin of 35%.
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Adjusted operating income for the segment decreased 1% year over year to $299 million. Further, earnings beat the Zacks Consensus Estimate of $2.18 by wide margin of 35%. The company witnessed strong volumes in its U.S. business driven by strategic pricing initiatives as well as an improving demand environment.
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fee6f38c-26e1-4428-bccb-932daf58f623
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722129.0
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2018-01-24 00:00:00 UTC
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Factors That Are Likely to Impact Dover's (DOV) Q4 Earnings
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DE
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https://www.nasdaq.com/articles/factors-that-are-likely-to-impact-dovers-dov-q4-earnings-2018-01-24
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nan
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nan
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Dover CorporationDOV is slated to report fourth-quarter earnings results on Jan 30, before the opening bell. Dover is expected to report year-over-year growth in both its top and bottom lines, as per our projections. The strong bookings trends, along with consistent rig count additions and higher-than-expected well completions, have poised the company for a stellar fourth quarter. Moreover, solid outlook for Dover's Engineered Systems and Fluid segments will drive the quarter's performance.
In third-quarter 2017, Dover reported adjusted earnings per share of $1.16, which surged 40% year over year. Total revenues increased 17% year over year to $2 billion in the quarter backed by acquisitions, organic growth and favorable impact from foreign, partly offset by an impact from dispositions. The company beat the Zacks Consensus Estimate on both counts.
Shares of Dover have gained 25.3% in the past six months, outperforming the industry 's growth of 18.0%.
However, despite the company beating the Zacks Consensus Estimate for earnings in three of the trailing four quarters, it has an average negative earnings surprise history of 1.22%.
Dover Corporation Price and EPS Surprise
Dover Corporation Price and EPS Surprise | Dover Corporation Quote
Let's delve deeper and take a look at factors that might influence the fourth-quarter results.
Factors at Play
The Energy segment grew sequentially for the fifth consecutive quarter in third quarter-2017, delivering year-over-year growth for the third straight quarter. We believe this feat will be repeated in the fourth quarter given that the Zacks Consensus Estimate for revenues of $649 million for the segment displays a sequential increase of 0.5% and year-over-year growth of 4%. Revenue growth continues to be driven by significant improvement in early-cycle oil and gas fundamentals, particularly U.S. rig count and well completions. The Zacks Consensus Estimate for the segment's operating earnings is pegged at $54 million, a 75% projected increase year over year.
In the Engineered Systems segment, Dover's Printing & Identification platform will consistently deliver solid performance, backed by continued strong growth in digital printing and solid activity in marking and coding markets. The estimate for the segment's revenues for the fourth quarter is pegged at $649 million, a 4% projected year-over-year growth. The segment's operating earnings is projected at $102 million, a 5% annual growth.
The Zacks Consensus Estimate for revenues for Dover's Refrigeration and Food Equipment segment is pegged at $363 million, a 3% year-over-year decline. Results in the segment remain affected by persistent softness in the commercial cooking equipment markets. The segment's earnings will fall 65% year over year to $41.6 million, as projected by the Zacks Consensus model, due to the decline in sales as well as higher raw material costs.
For the Fluids segment, the Zacks Consensus Estimate for revenues is pegged at $622 million, a projected 29% year-over-year rise on acquisition growth. The retail fueling integration continues to be on track and the segment continues to witness strong sequential margin improvement. The Zacks Consensus Estimate for the segment's operating earnings is $90 million, a substantial improvement of 160% year over year and a 3% sequential rise.
Dover's bookings at the end of the third quarter were worth $1.94 billion, up 15% year over year. Backlog increased 18% to $1.27 billion at the end of the reported quarter. Backed by strong bookings growth, the company is poised for a solid fourth quarter. The Zacks Consensus Estimate for revenues for Dover is at $1.99 billion, a 12% year-over-year growth.
Based on the latest Zacks Consensus Estimate, we expect Dover to report earnings of $1.04 per share in the fourth quarter. This would mark growth of 37% from the 76 cents per share posted in the year-ago quarter.
Currently, Dover carries a Zacks Rank #3 (Hold).
Stocks Worth Considering
Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an Earnings ESP of +3.29% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Deere's shares have surged 56% in the past year.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
iRobot Corporation IRBT has an Earnings ESP of +17.65% and a Zacks Rank #1. Its shares have gone up 47% in a year's time.
The Earnings ESP for Donaldson Company, Inc. DCI is +3.45%. It carries a Zacks Rank #2 (Buy). Shares of Donaldson Company have gone up 18% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, despite the company beating the Zacks Consensus Estimate for earnings in three of the trailing four quarters, it has an average negative earnings surprise history of 1.22%. Dover Corporation Price and EPS Surprise Dover Corporation Price and EPS Surprise | Dover Corporation Quote Let's delve deeper and take a look at factors that might influence the fourth-quarter results. Factors at Play The Energy segment grew sequentially for the fifth consecutive quarter in third quarter-2017, delivering year-over-year growth for the third straight quarter.
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Dover Corporation Price and EPS Surprise Dover Corporation Price and EPS Surprise | Dover Corporation Quote Let's delve deeper and take a look at factors that might influence the fourth-quarter results. In the Engineered Systems segment, Dover's Printing & Identification platform will consistently deliver solid performance, backed by continued strong growth in digital printing and solid activity in marking and coding markets. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. However, despite the company beating the Zacks Consensus Estimate for earnings in three of the trailing four quarters, it has an average negative earnings surprise history of 1.22%. Dover Corporation Price and EPS Surprise Dover Corporation Price and EPS Surprise | Dover Corporation Quote Let's delve deeper and take a look at factors that might influence the fourth-quarter results.
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However, despite the company beating the Zacks Consensus Estimate for earnings in three of the trailing four quarters, it has an average negative earnings surprise history of 1.22%. Dover Corporation Price and EPS Surprise Dover Corporation Price and EPS Surprise | Dover Corporation Quote Let's delve deeper and take a look at factors that might influence the fourth-quarter results. Factors at Play The Energy segment grew sequentially for the fifth consecutive quarter in third quarter-2017, delivering year-over-year growth for the third straight quarter.
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ef025f77-7801-4d08-9265-2f9476d952fd
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722130.0
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2018-01-23 00:00:00 UTC
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iShares Russell 3000 ETF Experiences Big Outflow
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DE
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https://www.nasdaq.com/articles/ishares-russell-3000-etf-experiences-big-outflow-2018-01-23
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.9% decrease week over week (from 53,450,000 to 52,950,000). Among the largest underlying components of IWV, in trading today Adobe Systems Inc (Symbol: ADBE) is up about 1.2%, FedEx Corp (Symbol: FDX) is down about 0.8%, and Deere & Co. (Symbol: DE) is lower by about 0.7%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $134.50 per share, with $167.54 as the 52 week high point - that compares with a last trade of $167.26. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $134.50 per share, with $167.54 as the 52 week high point - that compares with a last trade of $167.26. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $134.50 per share, with $167.54 as the 52 week high point - that compares with a last trade of $167.26. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.9% decrease week over week (from 53,450,000 to 52,950,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.9% decrease week over week (from 53,450,000 to 52,950,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $134.50 per share, with $167.54 as the 52 week high point - that compares with a last trade of $167.26. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $134.50 per share, with $167.54 as the 52 week high point - that compares with a last trade of $167.26. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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45fb274a-bcf5-4919-b094-cc630d03f78f
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722131.0
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2018-01-22 00:00:00 UTC
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Deere Reaches Analyst Target Price
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DE
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https://www.nasdaq.com/articles/deere-reaches-analyst-target-price-2018-01-22
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nan
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nan
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $167.92, changing hands for $170.32/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 12 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $119.00. And then on the other side of the spectrum one analyst has a target as high as $200.00. The standard deviation is $22.721.
But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $167.92/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $167.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Deere & Co.:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com . Get the latest Zacks research report on DE - FREE .
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $167.92, changing hands for $170.32/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $167.92/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $167.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $167.92, changing hands for $170.32/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level.
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When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. There are 12 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. And so with DE crossing above that average target price of $167.92/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $167.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised. There are 12 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. And then on the other side of the spectrum one analyst has a target as high as $200.00.
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747b778c-6b4a-4215-8f65-9e6a4b882382
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722132.0
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2018-01-22 00:00:00 UTC
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Will Improving End-Markets Aid Caterpillar's Q4 Earnings?
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DE
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https://www.nasdaq.com/articles/will-improving-end-markets-aid-caterpillars-q4-earnings-2018-01-22
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nan
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nan
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Caterpillar Inc.CAT is slated to report fourth-quarter 2017 results on Jan 25 before the opening bell. Notably, the company has outpaced earnings and revenue estimates in all the three quarters of 2017. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, Caterpillar has delivered continuous improvement over the course of 2017. This turnaround can be attributed to a continued improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts. Consequently, investors are keen to know whether Caterpillar will deliver fourth consecutive quarter of both top and bottom-line growth in the to-be-reported quarter.
Given impressive results, Caterpillar's share price has outperformed the industry in the past year. The shares gained 80.4%, ahead of the industry's growth of 78.3%. An earnings beat will help the company sustain the price momentum.
Looking at the upbeat estimates for the both earnings and revenues for the fourth quarter, it seems likely that the company will deliver improved year-over-year earnings on both metrics. This is also supported by strong fourth-quarter projections for its segments - Machinery, Energy & Transportation which garners a major chunk of revenues and earnings. Notably, performance will be driven by both the Construction and Resource Industries segments.
Let's delve deeper and take a look at factors that might influence the fourth-quarter results.
Segments Poised to Deliver Top-Line Growth
Per the Zacks Consensus Estimate, the Machinery, Energy & Transportation segment, which contributed approximately 94% of total revenues in third-quarter 2017, is expected to log year-over-year growth of 26% to $11.2 billion in the fourth quarter. We believe the company will witness growth in all its segments - Construction Industries, Resource Industries, Energy & Transportation.
The Zacks Consensus Estimate for total sales of $12.01 billion for the fourth quarter indicates 25.5% growth from the prior-year quarter.
Caterpillar, Inc. Price and EPS Surprise
Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote
The construction sector has been on an uptrend lately as evident from its leading indicators. The U.S. Architecture Billings Index (ABI), an economic indicator that provides an approximately nine to 12 month glimpse into the future of non-residential construction spending activity, has been at 50 or better recently, signaling robust conditions for the construction industry. Construction sales in Asia Pacific have shown resilience primarily owing to increased infrastructure and residential investment in China.
Caterpillar's Resource Industries' performance has also picked up lately. Sales are being driven by continued strong demand for aftermarket parts. Further, increased capital investments by mining customers also bode well. Per the Zacks Consensus Estimate, Resource Industries is also anticipated to witness expansion in the third quarter with 47% projected growth to $2.1 billion.
The Engine & Transportation is gaining on the back of higher sales across all applications. New engines and aftermarket sales for various industrial applications have also increased across the board. Strength in onshore North America oil and gas will drive results. Transportation is expected to grow, as higher rail traffic has propped up demand for rail services. The Zacks Consensus Estimates for the segment's revenues is at $4.5 billion, projecting 16% year-over-year growth.
Cost Control to Sustain the Bottom Line
In September 2015, Caterpillar set upon significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would lower annual operating costs by about $1.5 billion. In fourth-quarter 2017, revenue growth along with cost reduction will lead to an improved bottom-line as well. The Zacks Consensus Estimate for Profit before Taxes for the Machinery, Energy & Transportation segment is pegged at $1.2 billion, a reversal from its year ago loss of $1.5 billion.
This will be driven by an impressive 164% rise in the Construction segment's operating profit. Further, the Resource Industries segment will report an operating profit of $194 million in contrast to the operating loss of $711 million reported in fourth-quarter 2016. The Energy & Transportation segment is expected to report operating profit of $842 million, a 32% rise from the prior-year quarter.
Further, the Zacks Consensus Estimate for earnings of $1.77 for the fourth quarter reflects an improvement of 113.3% on a year-over-year basis.
Here is what our quantitative model predicts:
Caterpillar has the right combination of two main ingredients - a positive Earnings ESP and Zacks Rank #3 (Hold) or higher - which shows that it is likely to beat earnings in the to-be-reported quarter.
Zacks ESP: The Earnings ESP for Caterpillar is +6.22%. This is because the Most Accurate estimate of $1.88 is above the Zacks Consensus Estimate of $1.77. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Caterpillar carries a Zacks Rank #2 (Buy), which combined with a positive ESP makes us reasonably confident of a positive earnings surprise.
Other Stocks Worth a Look
Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an Earnings ESP of +2.65% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here . Deere's shares have surged 59% in the past year.
The Earnings ESP for Donaldson Company, Inc. DCI is +9.09%. It carries a Zacks Rank #2. Shares of Donaldson Company have gone up 25% in a year's time.
iRobot Corporation IRBT has an Earnings ESP of +20.00% and a Zacks Rank #2. Its shares have gone up 49% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRobot Corporation (IRBT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, Caterpillar has delivered continuous improvement over the course of 2017. Construction sales in Asia Pacific have shown resilience primarily owing to increased infrastructure and residential investment in China. Consequently, investors are keen to know whether Caterpillar will deliver fourth consecutive quarter of both top and bottom-line growth in the to-be-reported quarter.
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Segments Poised to Deliver Top-Line Growth Per the Zacks Consensus Estimate, the Machinery, Energy & Transportation segment, which contributed approximately 94% of total revenues in third-quarter 2017, is expected to log year-over-year growth of 26% to $11.2 billion in the fourth quarter. Caterpillar, Inc. Price and EPS Surprise Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote The construction sector has been on an uptrend lately as evident from its leading indicators. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Segments Poised to Deliver Top-Line Growth Per the Zacks Consensus Estimate, the Machinery, Energy & Transportation segment, which contributed approximately 94% of total revenues in third-quarter 2017, is expected to log year-over-year growth of 26% to $11.2 billion in the fourth quarter. Zacks Rank: Caterpillar carries a Zacks Rank #2 (Buy), which combined with a positive ESP makes us reasonably confident of a positive earnings surprise. Click to get this free report iRobot Corporation (IRBT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, Caterpillar has delivered continuous improvement over the course of 2017. Consequently, investors are keen to know whether Caterpillar will deliver fourth consecutive quarter of both top and bottom-line growth in the to-be-reported quarter. Looking at the upbeat estimates for the both earnings and revenues for the fourth quarter, it seems likely that the company will deliver improved year-over-year earnings on both metrics.
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6723e2c5-a381-48af-afd9-dac2c3ea3d1f
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722133.0
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2018-01-20 00:00:00 UTC
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3 Reasons Deere Is Set for a Good Year
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DE
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https://www.nasdaq.com/articles/3-reasons-deere-set-good-year-2018-01-20
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nan
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nan
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Shares in Deere & Company (NYSE: DE) have gone up nearly 60% in the last 12 months, but there could be more to come. After a difficult few years operationally, the company looks set for a strong 2018. I think there are three key reasons to like Deere this year. Let's look at why this could be the case.
Deere's core market is turning
Management is guiding toward 9% net sales growth in its key agriculture and turf segment in its fiscal 2018, a figure merely matching that achieved in 2017. But don't worry, that's only a part of the story. The reality is that last year's sales growth was bolstered by a 20% bounce in South America agriculture machinery sales, while U.S. and Canada agriculture machinery actually declined -- a concern because it's Deere's core market.
However, Deere is forecasting 5% to 10% growth in net sales in U.S. and Canada -- a reversal of a declining trend. Moreover, it's most troubled areas, large agricultural equipment, is set for a bounce.
To put this into context, Deere generates nearly 60% of its equipment sales from the U.S. and Canada and around half of its overall agriculture and turf sales from large equipment sales. Unfortunately, sales of large agricultural equipment declined by 60% from 2013-2016, and the impact on Deere's overall sales and profit can be seen below.
DE Revenue (TTM) data by YCharts .
Speaking on the last earnings call in November, Manager of Investor Communications Josh Jepsen said, "Despite current commodities prices the industry is experiencing stronger replacement demand for large equipment," and CFO Raj Kalathr went on to argue, "Even in 2018, with the sales on the upswing, we see the US market for things like large tractors, for example remaining over 25% below what we consider to be a mid-cycle level." In other words, the upside potential is significant.
Risk dissipating
Deere's forecast for a 22% increase in net sales in 2018 (excluding the Wirtgen acquisition it comes to around 10%) comes as the company appears to be over the worst in terms of potential risk from the amount of equipment it has on operating leases. It's an issue that has worried investors .
Simply put, Deere has significantly increased the equipment it has on short-term leases (notably one-year) in the past few years as farmers have been reluctant to buy equipment outright. This creates a situation whereby a glut of used equipment could hit the market after the leases expire, and if this occurs in a period of weak sales, then the downward pressure on prices of Deere's new equipment could be significant.
Fortunately, as you can see below, peak growth in operating leases occurred in the first quarter of 2016, and Deere has dealt well with the issue. Going into 2018, equipment sales are set for growth, and operating leases, although still growing, are increasing at a slowing rate.
In fact, Deere's execution during the downturn has been excellent on the whole .
Wirtgen looks like a good deal
Shares in Caterpillar Inc. (NYSE: CAT) have surged partly on the back of an improving outlook for infrastructural spending. Caterpillar's often seen as one of the best ways to play the theme, but Deere's intended acquisition of Wirtgen -- expected to close by the first quarter of 2018 -- will significantly increase Deere's exposure.
Based on Deere management's figures, the contribution of the construction and forestry segment's sales to overall equipment sales in 2016 would have been 30% with Wirtgen included, compared to 21% as reported. Moreover, Wirtgen is the global leader in road construction equipment (around 26% of Caterpillar's construction sales), so if you're buying Caterpillar as a play on growth in infrastructural spending, then Deere also deserves a close look.
Deere in 2018
While it's true that the company ultimately needs to see a return to growth in U.S. farm incomes (usually caused by higher crop prices) in order embark on multiyear sales growth, the immediate outlook for large agricultural machinery sales looks good -- farmers can't avoid buying equipment forever.
In addition, the company has managed the downturn well in terms of productivity improvements, inventory management, and equipment on operating leases, and the Wirtgen acquisition comes at the right time for believers in the infrastructural boom investment thesis. Deere looks set for a good year.
10 stocks we like better than Deere & Company
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's core market is turning Management is guiding toward 9% net sales growth in its key agriculture and turf segment in its fiscal 2018, a figure merely matching that achieved in 2017. Speaking on the last earnings call in November, Manager of Investor Communications Josh Jepsen said, "Despite current commodities prices the industry is experiencing stronger replacement demand for large equipment," and CFO Raj Kalathr went on to argue, "Even in 2018, with the sales on the upswing, we see the US market for things like large tractors, for example remaining over 25% below what we consider to be a mid-cycle level." Wirtgen looks like a good deal Shares in Caterpillar Inc. (NYSE: CAT) have surged partly on the back of an improving outlook for infrastructural spending.
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Deere's core market is turning Management is guiding toward 9% net sales growth in its key agriculture and turf segment in its fiscal 2018, a figure merely matching that achieved in 2017. Moreover, Wirtgen is the global leader in road construction equipment (around 26% of Caterpillar's construction sales), so if you're buying Caterpillar as a play on growth in infrastructural spending, then Deere also deserves a close look. Deere in 2018 While it's true that the company ultimately needs to see a return to growth in U.S. farm incomes (usually caused by higher crop prices) in order embark on multiyear sales growth, the immediate outlook for large agricultural machinery sales looks good -- farmers can't avoid buying equipment forever.
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The reality is that last year's sales growth was bolstered by a 20% bounce in South America agriculture machinery sales, while U.S. and Canada agriculture machinery actually declined -- a concern because it's Deere's core market. To put this into context, Deere generates nearly 60% of its equipment sales from the U.S. and Canada and around half of its overall agriculture and turf sales from large equipment sales. Deere in 2018 While it's true that the company ultimately needs to see a return to growth in U.S. farm incomes (usually caused by higher crop prices) in order embark on multiyear sales growth, the immediate outlook for large agricultural machinery sales looks good -- farmers can't avoid buying equipment forever.
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To put this into context, Deere generates nearly 60% of its equipment sales from the U.S. and Canada and around half of its overall agriculture and turf sales from large equipment sales. Unfortunately, sales of large agricultural equipment declined by 60% from 2013-2016, and the impact on Deere's overall sales and profit can be seen below. Shares in Deere & Company (NYSE: DE) have gone up nearly 60% in the last 12 months, but there could be more to come.
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722134.0
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2018-01-19 00:00:00 UTC
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Zacks Value Investor Highlights: General Electric, Masco, Fortune Brands Home & Security, Sherwin Williams and Deere
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https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-general-electric-masco-fortune-brands-home-security
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For Immediate Release
Chicago, IL - Jan 19, 2018 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/289191/forget-blockchain-invest-in-oldschool-winners-instead )
Forget Blockchain: Invest in Old School Winners Instead
Welcome to Episode #77 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Recently, Warren Buffett gave an interview on CNBC where anchor Becky Quick asked him about Bitcoin and cryptocurrencies.
He answered that he didn't own any, wasn't short any and would never have a position in them. Buffett then went on to say that they will come to a "bad ending" but he didn't know when or how it would happen.
As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
It's nearly the identical response dot-commers had to his comments in the late 1990s.
Picking Winners in Emerging Technologies
When a new technology bursts on the scene, there are always dozens of competitors. After all, it's seen as a gold rush and some people will get rich off of what is new.
In the 1800s, there were hundreds of railroads in the United States. But now, there are less than 10 big commercial railroad companies.
Similarly, there were thousands of automobile manufacturers and hundreds of domestic airlines when cars and airplanes came on the scene in the early 1900s.
But, again, today, the "winners" have won the contest. There are only a handful of big names in those industries. They are the survivors.
With cryptocurrencies and blockchain technology, it's so new, there's no way of knowing who the winners may be. Buffett's strategy, then, is to simply avoid those emerging technologies until winners can be determined.
Investing in the Old-School Winners
Why not invest in those that have become the winners in the older industries?
These companies, some of whom have survived for nearly two hundred years, are clearly doing something right.
1. General Electric (GE) is one of the original Dow Industrial components. Becky Quick asked Buffett about GE in their interview but he wouldn't say, due to compliance issues, if he was buying now that shares have plunged. Is it even cheap enough? It still has a forward P/E of 18.3.
2. Masco (MAS) makes plumbing parts like faucets, paints, cabinets and countertops. Founded in 1929, it now has a $14 billion market cap. Earnings are expected to rise 18% in 2018 after jumping about 29% in 2017.
3. Fortune Brands Home & Security (FBHS) makes cabinets and plumbing, including the Moen brand, but it also makes doors and security devices such as padlocks by Master Lock. With a $10 billion market cap, it's expected to see double digit earnings growth in both 2017 and 2018.
4. Sherwin Williams (SHW) recently acquired Valspar and is now one of the largest paint manufacturers in the world. Founded in 1866 in Cleveland, it's still producing double digit earnings growth all of these years later with analysts expecting earnings to pop 25.5% in 2018.
5. Deere & Company (DE) traces its roots all the way back to 1837 in Moline, Illinois. This agriculture and construction equipment giant has had a few tough years as farmers cut back on their equipment spending but is turning it around with fiscal 2018 earnings expected to jump 22%.
Sometimes, for investors, the tried and true is just as attractive as the shiny and new.
What else should you know about why Buffett is avoiding bitcoin and thinks the market isn't over valued?
Tune into this week's podcast to find out.
Exclusive Buffett Report for Podcast Listeners
What 3 secrets drive the success of arguably the world's greatest value investor? Which 5 stocks might he buy right now if he weren't already a billionaire?
Today, podcast listeners are invited to download Zacks' Special Report, Invest Like Warren Buffett for free . At the same time, you may also look inside Tracey Ryniec's personal Value Investor portfolio to see more stocks at exceptional "discounts."
Click to see them now >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Masco Corporation (MAS): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report
Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/289191/forget-blockchain-invest-in-oldschool-winners-instead ) Forget Blockchain: Invest in Old School Winners Instead Welcome to Episode #77 of the Value Investor Podcast. As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
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Fortune Brands Home & Security (FBHS) makes cabinets and plumbing, including the Moen brand, but it also makes doors and security devices such as padlocks by Master Lock. Click to get this free report Masco Corporation (MAS): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report To read this article on Zacks.com click here. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/289191/forget-blockchain-invest-in-oldschool-winners-instead ) Forget Blockchain: Invest in Old School Winners Instead Welcome to Episode #77 of the Value Investor Podcast.
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Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Masco Corporation (MAS): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report To read this article on Zacks.com click here. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/289191/forget-blockchain-invest-in-oldschool-winners-instead ) Forget Blockchain: Invest in Old School Winners Instead Welcome to Episode #77 of the Value Investor Podcast.
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To listen to the podcast, click here: ( https://www.zacks.com/stock/news/289191/forget-blockchain-invest-in-oldschool-winners-instead ) Forget Blockchain: Invest in Old School Winners Instead Welcome to Episode #77 of the Value Investor Podcast. Investing in the Old-School Winners Why not invest in those that have become the winners in the older industries? As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
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722135.0
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2018-01-19 00:00:00 UTC
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What's in Store for Rockwell Automation (ROK) Q1 Earnings?
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https://www.nasdaq.com/articles/whats-in-store-for-rockwell-automation-rok-q1-earnings-2018-01-19
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Rockwell Automation Inc.ROK is scheduled to report first-quarter fiscal 2018 results before the market opens on Jan 24.
In the last quarter, Rockwell Automation posted earnings of $1.69 per share, missing the Zacks Consensus Estimate. However, the company's earnings have surpassed estimates in three out of the trailing four quarters, recording an average positive earnings surprise of 9.08%.
Let's see how things are shaping up for this announcement.
Rockwell Automation, Inc. Price and EPS Surprise
Rockwell Automation, Inc. Price and EPS Surprise | Rockwell Automation, Inc. Quote
Key Factors to Consider
Rockwell Automation witnessed strong order activity in fourth-quarter fiscal 2017 which instils optimism for the fiscal first-quarter results. Additionally, improving global macroeconomic conditions and industrial production remain tailwinds. However, the company does not expect year-over-year EPS growth in the fiscal first quarter as incentive compensation remains a headwind. In addition, restructuring costs as well as elevated input costs might hinder the company's quarterly performance.
The company will, however, benefit from its restructuring actions initiated in fiscal 2017. These actions will support the company's efforts to focus on the Connected Enterprise (CE) strategy, and enhance competitiveness of its products, services and solutions.
Rockwell Automation expects its Architecture & Software and Control Products & Solutions segments to be impacted by restructuring charges in the fiscal first quarter. The Zacks Consensus Estimate for the Architecture & Software segment's net sales is pegged at $752 million. The estimate for the Control Products & Solutions segment's sales is pegged at $844 million.
Over the last 30 days, the Zacks Consensus Estimate for the fiscal first-quarter's earnings remained unchanged at $1.73. Shares of the company have appreciated around 46.5% over the past year underperforming growth of 46.7% recorded by the industry .
Earnings Whispers
Our proven model shows that Rockwell Automation is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Zacks ESP: The Earnings ESP for Rockwell Automation is +0.73%. This is because the Most Accurate estimate of $1.75 comes in higher than the Zacks Consensus Estimate of $1.73. A favorable Earnings ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Rockwell Automation currently carries a Zacks Rank #3. It should be noted that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings.
Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.
The combination of Rockwell Automation's Zacks Rank #3 and Earnings ESP of +0.73% makes us confident of a likely earnings beat.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
iRobot Corporation IRBT , with an Earnings ESP of +17.65% and a Zacks Rank #1. Its shares have gained 1.5%, over the past six months. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company DE , with an Earnings ESP of +5.64% and a Zacks Rank #1. The company's shares have been up 33.7% during the same time frame.
Briggs & Stratton Corporation BGG , with an Earnings ESP of +10.29% and a Zacks Rank #1. The stock has gained 10.1% in six months' time.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rockwell Automation, Inc. Price and EPS Surprise Rockwell Automation, Inc. Price and EPS Surprise | Rockwell Automation, Inc. Quote Key Factors to Consider Rockwell Automation witnessed strong order activity in fourth-quarter fiscal 2017 which instils optimism for the fiscal first-quarter results. In addition, restructuring costs as well as elevated input costs might hinder the company's quarterly performance. Shares of the company have appreciated around 46.5% over the past year underperforming growth of 46.7% recorded by the industry .
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Rockwell Automation, Inc. Price and EPS Surprise Rockwell Automation, Inc. Price and EPS Surprise | Rockwell Automation, Inc. Quote Key Factors to Consider Rockwell Automation witnessed strong order activity in fourth-quarter fiscal 2017 which instils optimism for the fiscal first-quarter results. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, restructuring costs as well as elevated input costs might hinder the company's quarterly performance.
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Rockwell Automation, Inc. Price and EPS Surprise Rockwell Automation, Inc. Price and EPS Surprise | Rockwell Automation, Inc. Quote Key Factors to Consider Rockwell Automation witnessed strong order activity in fourth-quarter fiscal 2017 which instils optimism for the fiscal first-quarter results. Stocks to Consider Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: iRobot Corporation IRBT , with an Earnings ESP of +17.65% and a Zacks Rank #1. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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The combination of Rockwell Automation's Zacks Rank #3 and Earnings ESP of +0.73% makes us confident of a likely earnings beat. Rockwell Automation, Inc. Price and EPS Surprise Rockwell Automation, Inc. Price and EPS Surprise | Rockwell Automation, Inc. Quote Key Factors to Consider Rockwell Automation witnessed strong order activity in fourth-quarter fiscal 2017 which instils optimism for the fiscal first-quarter results. In addition, restructuring costs as well as elevated input costs might hinder the company's quarterly performance.
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2018-01-19 00:00:00 UTC
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Grainger (GWW) to Report Q4 Earnings: What's in Store?
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https://www.nasdaq.com/articles/grainger-gww-to-report-q4-earnings%3A-whats-in-store-2018-01-19
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W.W. Grainger, Inc.GWW is scheduled to release fourth-quarter 2017 financial numbers before the opening bell on Jan 24. Its fourth-quarter earnings are likely to dip year over year due to higher expenses despite a rise in revenues.
In the last reported quarter as well, the distributor of maintenance, repair, and operating (MRO) supplies; and other related products and services reported a dip of 5% in earnings to $2.90 per share while revenues edged up 1.5%. However, both earnings and revenues managed to beat the Zacks Consensus Estimates.
The stock has struggled so far this year due to multiple headwinds, underperforming the industry it belongs to. The stock has tanked 6.8%, wider than the industry's decline of 3.9%.
Will the upcoming earnings release exert more pressure on the stock? Notably, Grainger delivered an earnings beat in three of the trailing four quarters, with an average positive earnings surprise of 4.23%.
Our proven model does not conclusively predict an earnings beat in the third quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below:
Zacks ESP: Grainger has an Earnings ESP of +3.76%. This is because the Most Accurate estimate of $2.27 is pegged higher than the Zacks Consensus Estimate of $2.18. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Grainger's Zacks Rank #5 (Strong Sell) lowers the predictive power of ESP. It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
W.W. Grainger, Inc. Price and EPS Surprise
W.W. Grainger, Inc. Price and EPS Surprise | W.W. Grainger, Inc. Quote
Factors Likely at Play
While volumes will improve driven by price initiatives and improved demand environment, the bottom line is likely to face the brunt of elevated expenses. Expenses in the fourth quarter will be higher due to normal seasonality and also due to the incremental investments in the single channel online business and digital marketing.
The Zacks Consensus Estimate for total sales of $2.6 billion indicates 2% growth from the prior-year quarter. However, growth in the top line will not translate to growth in earnings due to higher expenses as evident from drop of 11% in earnings projected by the Zacks Consensus model. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $2.18 compared with $2.45 reported in fourth-quarter 2016.
Even though the company remains focused on improving gross margins and reducing cost structure in Canada, the segment continues to be challenged due to higher expenses. Further, given that oil and gas and energy exposure in Canada is very high, the segment remains affected by fluctuation oil and gas prices. Per the Zacks Consensus Estimates, net sales in the Canada segment will rise 6% to around $191 million in the fourth quarter. However, due to the abovementioned reasons, the segment will likely report an adjusted operating loss of $11.4 million, wider than the operating loss of $10.7 million in fourth-quarter 2016.
Per the Zacks Consensus Estimate, net sales in the Unites States will increase 2% year over year to $1,935 million. The segment will report 12% drop in adjusted operating income to $263 million due to higher expenses.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE , with an Earnings ESP of +5.64% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Briggs & Stratton Corporation BGG with an Earnings ESP of +5.64% and a Zacks Rank #1.
Caterpillar, Inc. CAT , with an Earnings ESP of +8.62% and a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its fourth-quarter earnings are likely to dip year over year due to higher expenses despite a rise in revenues. The stock has struggled so far this year due to multiple headwinds, underperforming the industry it belongs to. The stock has tanked 6.8%, wider than the industry's decline of 3.9%.
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W.W. Grainger, Inc. Price and EPS Surprise W.W. Grainger, Inc. Price and EPS Surprise | W.W. Grainger, Inc. Quote Factors Likely at Play While volumes will improve driven by price initiatives and improved demand environment, the bottom line is likely to face the brunt of elevated expenses. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Its fourth-quarter earnings are likely to dip year over year due to higher expenses despite a rise in revenues.
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However, growth in the top line will not translate to growth in earnings due to higher expenses as evident from drop of 11% in earnings projected by the Zacks Consensus model. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Its fourth-quarter earnings are likely to dip year over year due to higher expenses despite a rise in revenues.
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Its fourth-quarter earnings are likely to dip year over year due to higher expenses despite a rise in revenues. The stock has struggled so far this year due to multiple headwinds, underperforming the industry it belongs to. The stock has tanked 6.8%, wider than the industry's decline of 3.9%.
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18f79159-968b-407b-866b-615521cdbb19
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722137.0
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2018-01-18 00:00:00 UTC
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Emerson (EMR) Closes Buyout of Software Supplier, ProSys
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DE
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https://www.nasdaq.com/articles/emerson-emr-closes-buyout-of-software-supplier-prosys-2018-01-18
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nan
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nan
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Emerson Electric Co.EMR recently acquired ProSys, a global supplier of software and services that facilitates increased production and safety for chemical, pulp & paper, oil & gas, as well as refining industries. ProSys' unique technologies and proficiency will enable Emerson to aid customers in improving plant performance, safety and profitability by optimizing human as well as automation resources.
Acquisition Rationale
The acquisition complements Emerson's buyout of MYNAH Technologies in May 2017. ProSys' portfolio consists of solutions that aid management of alarms crucial to plant production, as well as handling changing plant states.
ProSys' software portfolio supports Emerson's Operational Certainty program, which allows industrial companies to realize Top Quartile performance in areas such as safety, reliability as well as production. ProSys' technologies, when combined with Emerson's added expertise will enable operators to navigate plant systems safely and efficiently. This will also allow customers to accommodate the changing state and age of the industrial workforce.
Our Take
Emerson has been executing restructuring activities since 2015 to drive efficiency and growth. The company has taken a series of concerted efforts to develop a better brand with significant customer focus. It has also devised cost cutting and divestment plans to unlock greater benefits in the coming quarters. All of its segments garnered significant savings from restructuring actions. Notably, this Zacks Rank #3 (Hold) company has returned 22.1% in the past six months, outperforming the industry 's average gain of 11.6%.
The company's ardent eye for acquisitions is anticipated to be conducive to core business. The company is on a constant lookout for small bolt-on and strategic acquisitions to restore sales, up to $20 billion and cash flow back to over $3.2 billion, over a span of next five years. Recently, the company completed the buyout of Pentair Valves & Controls and a business unit of Pentair plc. Further, the company expanded global capabilities in fresh food monitoring, with the acquisitions of Locus Traxx and PakSense. We believe such strategic buyouts will supplement the top-line performance, going forward. This apart, the company's diligent efforts for launching new products and technologies helps it to gain a competitive advantage over peers.
However, the fact remains that, prolonged softness in the oil and gas markets has affected both capital spending and operational expenditure of clients, which in turn are hurting Emerson's operations. Moreover, the company's operations have been suffering as a result of slow spending in general industrial markets. This has affected its order rates across the related segments, consequently pulling down the company's top line.
Stocks to Consider
Some better-ranked stocks from the same space include Deere & Company DE , Barnes Group, Inc. B and Donaldson Company, Inc. DCI . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Barnes Group and Donaldson Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 19.5%.
Barnes Group has outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 9.0%.
Donaldson Company has surpassed estimates thrice in the preceding four quarters, with an average positive earnings surprise of 5.2%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Emerson Electric Company (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Barnes Group, Inc. (B): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ProSys' technologies, when combined with Emerson's added expertise will enable operators to navigate plant systems safely and efficiently. The company has taken a series of concerted efforts to develop a better brand with significant customer focus. It has also devised cost cutting and divestment plans to unlock greater benefits in the coming quarters.
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Stocks to Consider Some better-ranked stocks from the same space include Deere & Company DE , Barnes Group, Inc. B and Donaldson Company, Inc. DCI . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Barnes Group and Donaldson Company carry a Zacks Rank #2 (Buy). Click to get this free report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks from the same space include Deere & Company DE , Barnes Group, Inc. B and Donaldson Company, Inc. DCI . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Barnes Group and Donaldson Company carry a Zacks Rank #2 (Buy). Click to get this free report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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While Deere & Company sports a Zacks Rank #1 (Strong Buy), Barnes Group and Donaldson Company carry a Zacks Rank #2 (Buy). ProSys' technologies, when combined with Emerson's added expertise will enable operators to navigate plant systems safely and efficiently. The company has taken a series of concerted efforts to develop a better brand with significant customer focus.
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7646e630-5e50-4270-b758-c4f2b6b1760a
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722138.0
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2018-01-17 00:00:00 UTC
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Lincoln Electric Crafts 52-Week High: What's Driving It?
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DE
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https://www.nasdaq.com/articles/lincoln-electric-crafts-52-week-high%3A-whats-driving-it-2018-01-17
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nan
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nan
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Shares of Lincoln Electric Holdings, Inc.LECO scaled a 52-week high of $100.68 on Jan 16, eventually closing lower at $99.03. The upswing stemmed from improving end markets.
The company has a market cap of $6.5 billion. Over the last three months, its average volume of shares traded has been approximately 392K. Also, Lincoln Electric surpassed the Zacks Consensus Estimate in three out of the trailing four quarters, with an average positive earnings surprise of 3.65%.
Price Performance
Notably, the stock has gained 8.9% over the past month, higher than the S&P 500's gain of 3.4%. Lincoln Electric has also outperformed the industry 's rally of 4.3% during the same time frame, with respect to price performance.
What Led to the 52-Week High?
Around 90% of Lincoln Electric's revenues are exposed to end-sector applications which are, currently on a positive trend. The company's focus on commercializing innovative products, relatively stable pricing environment and cost-cutting initiatives will also drive growth.
Lincoln Electric Holdings, Inc. Price and Consensus
Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote
Further, Lincoln Electric has increased investment in research and development, and also acquired complementary technologies to boost the strength of its existing product lines. The company has also rolled out new offerings such as automation to supplement growth in the core markets.
With the rationalization of its production and the elimination of unprofitable products, the company has been generating higher operating margins in China. Although the penetration of automated systems is relatively low in the nation, the rising demand for increased efficiency and higher-quality output creates opportunity for growth.
Zacks Rank & Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Sandvik AB SDVKY . While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Sandvik carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 32.9%, over the past six months.
Kennametal has a long-term earnings growth rate of 8.3%. The company's shares have been up 32.6% during the same time frame.
Sandvik has a long-term earnings growth rate of 7.5%. Shares of the company have gained 19.8% in six months' time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Sandvik AB (SDVKY): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although the penetration of automated systems is relatively low in the nation, the rising demand for increased efficiency and higher-quality output creates opportunity for growth. Over the last three months, its average volume of shares traded has been approximately 392K. Lincoln Electric Holdings, Inc. Price and Consensus Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote Further, Lincoln Electric has increased investment in research and development, and also acquired complementary technologies to boost the strength of its existing product lines.
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Lincoln Electric Holdings, Inc. Price and Consensus Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote Further, Lincoln Electric has increased investment in research and development, and also acquired complementary technologies to boost the strength of its existing product lines. Some better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Sandvik AB SDVKY . Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Sandvik AB (SDVKY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Lincoln Electric Holdings, Inc. Price and Consensus Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote Further, Lincoln Electric has increased investment in research and development, and also acquired complementary technologies to boost the strength of its existing product lines. Zacks Rank & Stocks to Consider Lincoln Electric currently carries a Zacks Rank #3 (Hold). Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Sandvik AB (SDVKY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Lincoln Electric Holdings, Inc. Price and Consensus Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote Further, Lincoln Electric has increased investment in research and development, and also acquired complementary technologies to boost the strength of its existing product lines. Over the last three months, its average volume of shares traded has been approximately 392K. Although the penetration of automated systems is relatively low in the nation, the rising demand for increased efficiency and higher-quality output creates opportunity for growth.
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a83b07be-376a-448f-a0f4-0e34d6ee3663
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722139.0
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2018-01-17 00:00:00 UTC
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Higher Expenses, Weak Canada Operations Ail Grainger (GWW)
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DE
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https://www.nasdaq.com/articles/higher-expenses-weak-canada-operations-ail-grainger-gww-2018-01-17
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nan
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nan
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We issued an updated research report on W.W. Grainger, Inc.GWW on Jan 16, 2018. Weakness on Canada operations and inflationary expenses are expected to weigh on the company's results in the near term.
Tepid Guidance
Grainger's third-quarter 2017 adjusted earnings per share of $2.90 came in lower than the prior-year figure of $3.06 by 5%. During the third-quarter conference call, the company lowered 2017 guidance. It now expects 2017 sales growth of 1.5-2.5%, down from previously projected range of 1-4%. Earnings per share are now expected to lie between $10.40 and $10.90, down from the prior guidance range of $10.00-$11.30. The midpoint of the earnings guidance reflects an 8% year-over-year decline due to ongoing challenges in Canada operations and headwind from the sale of the specialty business.
Results Anticipated to be Lower than Prior-Year Levels
The Zacks Consensus Estimate for 2017 for earnings is $10.71, reflecting dip of 7.51% from 2016 levels. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $2.18, depicting year-over-year decline of 11.02%.
Factors That Will Dent Margins
Expenses in the fourth quarter will be higher due to normal seasonality and incremental investments in the single channel online business as well as digital marketing. From 2017 to 2019, Grainger expects inflationary expenses to be approximately $80-$85 million, which is about 2% of the base annually. These actions will result in significant operating expense leverage which is likely to hurt the margin performance.
Grainger's new web pricing strategy was launched to reverse unfavorable market share trends, which the company has witnessed in certain market segments in recent years. Meanwhile, Grainger's pricing initiatives are driving solid growth. Further, the company will continue pricing strategies in the United States through 2018 and expects to cut down prices by 6.9% in the period. However, it will affect margins in the short term. Also, it remains to be seen whether the company can retain customer base if competitors also resort to slashing prices.
Weak Canada Operations Continues to be a Drag
Grainger's Canada segment continues to be underperform due to higher expenses and weakness in the energy sector. The company is amid a substantial transformation in the Canadian business. The company continues to manage expenses and trying to turnaround the business. It has announced the closure of 59 branches and eliminated poorly performing assets. It remains to be seen whether its efforts will yield results.
Grainger's shares have fallen 5.2% in the past year, wider than the industry 's decline of 1.5%.
Currently, Grainger carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Graphic Packaging carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 34.5% in the past year.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The company's shares have surged 77% over a year's time.
Graphic Packaging has a long-term earnings growth rate of 5%. The stock has gained 28% in a year's time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The midpoint of the earnings guidance reflects an 8% year-over-year decline due to ongoing challenges in Canada operations and headwind from the sale of the specialty business. Factors That Will Dent Margins Expenses in the fourth quarter will be higher due to normal seasonality and incremental investments in the single channel online business as well as digital marketing. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $2.18, depicting year-over-year decline of 11.02%.
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Stocks to Consider Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Graphic Packaging carries a Zacks Rank #2 (Buy). Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Graphic Packaging carries a Zacks Rank #2 (Buy). Click to get this free report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . The midpoint of the earnings guidance reflects an 8% year-over-year decline due to ongoing challenges in Canada operations and headwind from the sale of the specialty business. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $2.18, depicting year-over-year decline of 11.02%.
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1ace4d4a-a3db-4a51-a84a-c3681ea86707
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722140.0
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2018-01-17 00:00:00 UTC
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Forget Blockchain: Invest in Old-School Winners Instead
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DE
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https://www.nasdaq.com/articles/forget-blockchain-invest-old-school-winners-instead-2018-01-17
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nan
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nan
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(0: 30 ) - Warren Buffett Thoughts On Cyptocurrency
(4: 15 ) - Emerging Technology: Boom or Bust
(8: 30 ) - Buffett's 3 Ways The Market Could Keep Rising
(11: 45 ) - How To Play The Market Like Buffett
(15: 15 ) - Tracey's Top Picks: Old School Winners
(22: 00 ) - Episode Roundup: Podcast@Zacks.com
Welcome to Episode #77 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Recently, Warren Buffett gave an interview on CNBC where anchor Becky Quick asked him about Bitcoin and cryptocurrencies.
He answered that he didn't own any, wasn't short any and would never have a position in them. Buffett then went on to say that they will come to a "bad ending" but he didn't know when or how it would happen.
As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
It's nearly the identical response dot-commers had to his comments in the late 1990s.
Picking Winners in Emerging Technologies
When a new technology bursts on the scene, there are always dozens of competitors. After all, it's seen as a gold rush and some people will get rich off of what is new.
In the 1800s, there were hundreds of railroads in the United States. But now, there are less than 10 big commercial railroad companies.
Similarly, there were thousands of automobile manufacturers and hundreds of domestic airlines when cars and airplanes came on the scene in the early 1900s.
But, again, today, the "winners" have won the contest. There are only a handful of big names in those industries. They are the survivors.
With cryptocurrencies and blockchain technology, it's so new, there's no way of knowing who the winners may be. Buffett's strategy, then, is to simply avoid those emerging technologies until winners can be determined.
Investing in the Old-School Winners
Why not invest in those that have become the winners in the older industries?
These companies, some of whom have survived for nearly two hundred years, are clearly doing something right.
1. General Electric GE is one of the original Dow Industrial components. Becky Quick asked Buffett about GE in their interview but he wouldn't say, due to compliance issues, if he was buying now that shares have plunged. Is it even cheap enough? It still has a forward P/E of 18.3.
2. Masco MAS makes plumbing parts like faucets, paints, cabinets and countertops. Founded in 1929, it now has a $14 billion market cap. Earnings are expected to rise 18% in 2018 after jumping about 29% in 2017.
3. Fortune Brands Home & Security FBHS makes cabinets and plumbing, including the Moen brand, but it also makes doors and security devices such as padlocks by Master Lock. With a $10 billion market cap, it's expected to see double digit earnings growth in both 2017 and 2018.
4. Sherwin Williams SHW recently acquired Valspar and is now one of the largest paint manufacturers in the world. Founded in 1866 in Cleveland, it's still producing double digit earnings growth all of these years later with analysts expecting earnings to pop 25.5% in 2018.
5. Deere & Company DE traces its roots all the way back to 1837 in Moline, Illinois. This agriculture and construction equipment giant has had a few tough years as farmers cut back on their equipment spending but is turning it around with fiscal 2018 earnings expected to jump 22%.
Sometimes, for investors, the tried and true is just as attractive as the shiny and new.
What else should you know about why Buffett is avoiding bitcoin and thinks the market isn't over valued?
Tune into this week's podcast to find out.
Exclusive Buffett Report for Podcast Listeners
What 3 secrets drive the success of arguably the world's greatest value investor? Which 5 stocks might he buy right now if he weren't already a billionaire?
Today, podcast listeners are invited to download Zacks' Special Report, Invest Like Warren Buffett for free . At the same time, you may also look inside Tracey Ryniec's personal Value Investor portfolio to see more stocks at exceptional "discounts."
Click to see them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Masco Corporation (MAS): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report
Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(0: 30 ) - Warren Buffett Thoughts On Cyptocurrency (4: 15 ) - Emerging Technology: Boom or Bust (8: 30 ) - Buffett's 3 Ways The Market Could Keep Rising (11: 45 ) - How To Play The Market Like Buffett (15: 15 ) - Tracey's Top Picks: Old School Winners (22: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #77 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant. It's nearly the identical response dot-commers had to his comments in the late 1990s.
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(0: 30 ) - Warren Buffett Thoughts On Cyptocurrency (4: 15 ) - Emerging Technology: Boom or Bust (8: 30 ) - Buffett's 3 Ways The Market Could Keep Rising (11: 45 ) - How To Play The Market Like Buffett (15: 15 ) - Tracey's Top Picks: Old School Winners (22: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #77 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report Masco Corporation (MAS): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report To read this article on Zacks.com click here. As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
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(0: 30 ) - Warren Buffett Thoughts On Cyptocurrency (4: 15 ) - Emerging Technology: Boom or Bust (8: 30 ) - Buffett's 3 Ways The Market Could Keep Rising (11: 45 ) - How To Play The Market Like Buffett (15: 15 ) - Tracey's Top Picks: Old School Winners (22: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #77 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report Masco Corporation (MAS): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report To read this article on Zacks.com click here. As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
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(0: 30 ) - Warren Buffett Thoughts On Cyptocurrency (4: 15 ) - Emerging Technology: Boom or Bust (8: 30 ) - Buffett's 3 Ways The Market Could Keep Rising (11: 45 ) - How To Play The Market Like Buffett (15: 15 ) - Tracey's Top Picks: Old School Winners (22: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #77 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Investing in the Old-School Winners Why not invest in those that have become the winners in the older industries? As you can imagine, he immediately came under attack from those in the crypto community for being out-of-touch, too old, and ignorant.
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6276c38a-e572-4680-bd57-12d6b4d23ac3
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722141.0
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2018-01-16 00:00:00 UTC
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Sonoco (SON) Arm to Hike Prices for Paper-Based Tubes & Core
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DE
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https://www.nasdaq.com/articles/sonoco-son-arm-to-hike-prices-for-paper-based-tubes-core-2018-01-16
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nan
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nan
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Sonoco Alcore S.a.r.l., a wholly owned subsidiary of Sonoco Products Co.SON , has announced a price hike of up to 7% for paper-based tubes and cores in Europe. The price increase, which will be effective with shipments beginning in February 2018, has been made to counter price rise in OCC (old corrugated containers) in a number of European countries.
OCC prices across Europe have reportedly soared a whopping 250% over the past 10 years. This follows the continued rise in coreboard prices, stemming from strong demand and elevated recovered paper and energy costs. Higher OCC recovery rate will escalate OCC collection costs, along with rising transportation and labor costs. An increase in costs can adversely affect Sonoco's business and financial results. The company also uses derivatives to mitigate some of the impact of raw material and energy-cost fluctuations.
Paperboard tubes and cores are the key elements of Sonoco's Paper and Industrial Converted Products segment. The segment, which serves its markets through 177 plants on five continents, accounted for approximately 35% of Sonoco's consolidated net sales in 2016.
Sonoco Products Company Price
Sonoco Products Company price | Sonoco Products Company Quote
In December 2017, Sonoco Alcore announced a price hike of $55 (€50) per ton on all recycled paperboard grades sold in the Central European regions in order to combat elevated raw material and energy prices. The price hike became effective with shipments after Jan 1, 2018.
For fourth-quarter 2017, the company projects earnings per share in the range of 68-74 cents. This guidance takes into consideration the impact of acquisitions, net of divestitures, and higher recovered paper prices during the quarter. Compared with the prior-year quarter's earnings per share of 62 cents, the mid-point of the guidance reflects year-over-year growth of 14.5%.
Share Price Performance
In the last year, Sonoco has underperformed the industry it belongs to, led by sluggish demand trends in the consumer business. The stock has gained just 0.3%, while the industry has ascended 17.1%.
Zacks Rank & Stocks to Consider
Currently, Sonoco carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . While Deere and H&E Equipment sport a Zacks Rank #1 (Strong Buy), Graphic Packaging carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 34.5%, over the past six months.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The company's shares have been up 89.1% during the same time frame.
Graphic Packaging has a long-term earnings growth rate of 5%. The stock has gained 19.9% in six months' time.
Today's Stocks from Zacks' Hottest Strategies
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Sonoco Products Company (SON): Free Stock Analysis Report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This follows the continued rise in coreboard prices, stemming from strong demand and elevated recovered paper and energy costs. This guidance takes into consideration the impact of acquisitions, net of divestitures, and higher recovered paper prices during the quarter. Share Price Performance In the last year, Sonoco has underperformed the industry it belongs to, led by sluggish demand trends in the consumer business.
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Sonoco Products Company Price Sonoco Products Company price | Sonoco Products Company Quote In December 2017, Sonoco Alcore announced a price hike of $55 (€50) per ton on all recycled paperboard grades sold in the Central European regions in order to combat elevated raw material and energy prices. Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sonoco Products Company Price Sonoco Products Company price | Sonoco Products Company Quote In December 2017, Sonoco Alcore announced a price hike of $55 (€50) per ton on all recycled paperboard grades sold in the Central European regions in order to combat elevated raw material and energy prices. Zacks Rank & Stocks to Consider Currently, Sonoco carries a Zacks Rank #3 (Hold). Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sonoco Products Company Price Sonoco Products Company price | Sonoco Products Company Quote In December 2017, Sonoco Alcore announced a price hike of $55 (€50) per ton on all recycled paperboard grades sold in the Central European regions in order to combat elevated raw material and energy prices. Some better-ranked stocks in the sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and Graphic Packaging Holding Company GPK . The price increase, which will be effective with shipments beginning in February 2018, has been made to counter price rise in OCC (old corrugated containers) in a number of European countries.
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22c772fc-ee63-4dd8-b2a8-139229d45a03
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722142.0
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2018-01-16 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Deere & Company (DE) Stock?
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DE
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-deere-company-de-stock-2018-01-16
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nan
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nan
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Investors in Deere & CompanyDE need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2018 $90.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Deere & Company shares, but what is the fundamental picture for the company? Currently, Deere & Company is a Zacks Rank #1 (Strong Buy) in the Manufacturing - Farm Equipment industry that ranks in the Top 24% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 91 cents per share to $1.10 in that period.
Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Deere & CompanyDE need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details: Want the latest recommendations from Zacks Investment Research?
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Deere & CompanyDE need to pay close attention to the stock based on moves in the options market lately.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there's a trade developing. Investors in Deere & CompanyDE need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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6ce17aae-919e-4b48-9fbd-ed5b09f12247
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722143.0
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2018-01-16 00:00:00 UTC
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Noteworthy Tuesday Option Activity: ADNT, DE, LCII
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-adnt-de-lcii-2018-01-16
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Adient plc (Symbol: ADNT), where a total volume of 4,538 contracts has been traded thus far today, a contract volume which is representative of approximately 453,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.5% of ADNT's average daily trading volume over the past month, of 762,245 shares. Especially high volume was seen for the $90 strike call option expiring February 16, 2018 , with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of ADNT. Below is a chart showing ADNT's trailing twelve month trading history, with the $90 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 59% of DE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $167.50 strike put option expiring February 09, 2018 , with 1,017 contracts trading so far today, representing approximately 101,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
And LCI Industries (Symbol: LCII) saw options trading volume of 617 contracts, representing approximately 61,700 underlying shares or approximately 55.3% of LCII's average daily trading volume over the past month, of 111,605 shares. Particularly high volume was seen for the $125 strike put option expiring July 20, 2018 , with 405 contracts trading so far today, representing approximately 40,500 underlying shares of LCII. Below is a chart showing LCII's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for ADNT options , DE options , or LCII options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $90 strike call option expiring February 16, 2018 , with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of ADNT. Especially high volume was seen for the $167.50 strike put option expiring February 09, 2018 , with 1,017 contracts trading so far today, representing approximately 101,700 underlying shares of DE. Particularly high volume was seen for the $125 strike put option expiring July 20, 2018 , with 405 contracts trading so far today, representing approximately 40,500 underlying shares of LCII.
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Especially high volume was seen for the $90 strike call option expiring February 16, 2018 , with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of ADNT. Below is a chart showing ADNT's trailing twelve month trading history, with the $90 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 59% of DE's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange: And LCI Industries (Symbol: LCII) saw options trading volume of 617 contracts, representing approximately 61,700 underlying shares or approximately 55.3% of LCII's average daily trading volume over the past month, of 111,605 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Adient plc (Symbol: ADNT), where a total volume of 4,538 contracts has been traded thus far today, a contract volume which is representative of approximately 453,800 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ADNT's trailing twelve month trading history, with the $90 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 12,794 contracts, representing approximately 1.3 million underlying shares or approximately 59% of DE's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange: And LCI Industries (Symbol: LCII) saw options trading volume of 617 contracts, representing approximately 61,700 underlying shares or approximately 55.3% of LCII's average daily trading volume over the past month, of 111,605 shares.
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Especially high volume was seen for the $90 strike call option expiring February 16, 2018 , with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of ADNT. Especially high volume was seen for the $167.50 strike put option expiring February 09, 2018 , with 1,017 contracts trading so far today, representing approximately 101,700 underlying shares of DE. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Adient plc (Symbol: ADNT), where a total volume of 4,538 contracts has been traded thus far today, a contract volume which is representative of approximately 453,800 underlying shares (given that every 1 contract represents 100 underlying shares).
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5e71a42a-360b-4aa0-a56c-bb6752d4f239
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722144.0
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2018-01-15 00:00:00 UTC
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Why Should You Dump Apogee (APOG) From Your Portfolio Now?
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DE
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https://www.nasdaq.com/articles/why-should-you-dump-apogee-apog-from-your-portfolio-now-2018-01-15
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nan
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nan
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Apogee Enterprises, Inc.APOG has been disappointing investors, of late. The stock has lost 14.8%, over the past six months. Here's what might pull down its shares further and why investors should sell the stock.
Estimates Moving South
The Zacks Consensus Estimate for fiscal 2018 and 2019 earnings has been revised downward over the past 30 days, reflecting analysts' bearish sentiments. Apogee's earnings estimate has dropped 7.8% to $2.82 for fiscal 2018 and 4.4% to $3.89 for fiscal 2019.
Price Performance
Shares of Apogee have underperformed the industry in a year's time. The stock has lost 16.6%, while the industry has recorded growth of 5.1%.
Negative Earnings Surprise History
The company missed the Zacks Consensus Estimate in three out of the trailing four quarters. Further, it witnessed an average negative earnings surprise of 6.9% during the same time frame.
Expensive Valuation
Apogee's trailing 12-month price to earnings (P/E) ratio is 15.2, above the industry's ratio of 9.8. This implies that the stock is overvalued.
Headwinds
Apogee lowered its fiscal 2018 guidance due to lesser-than-expected volume and pricing in the Architectural Glass segment, and higher-than-expected health-care costs. In addition, the trimmed outlook reflects charges which will result from restructuring activities in fourth-quarter fiscal 2018. The company also narrowed its revenue growth guidance to around 20% due to hurricane-related delays. It also trimmed its earnings per share guidance for the fiscal to the $2.58-$2.68 range.
Notably, Apogee's Architectural Glass segment's performance will be impacted by heightened competition in both large- and mid-sized projects, in turn putting pressure on top- and bottom-line performance. Further, increase in imports of competitive products from international suppliers might hamper the Architectural Framing Systems segment's results.
Zacks Rank & Stocks to Consider
Apogee currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and MSC Industrial Direct Co., Inc. MSM . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 34.5%, over the past six months.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The company's shares have been up 89.1% during the same time frame.
MSC Industrial has a long-term earnings growth rate of 11.5%. The stock has gained 27.5% in six months' time.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the same sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and MSC Industrial Direct Co., Inc. MSM . Price Performance Shares of Apogee have underperformed the industry in a year's time. The stock has lost 16.6%, while the industry has recorded growth of 5.1%.
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Some better-ranked stocks in the same sector are Deere & Company DE , H&E Equipment Services, Inc. HEES and MSC Industrial Direct Co., Inc. MSM . Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report To read this article on Zacks.com click here. Price Performance Shares of Apogee have underperformed the industry in a year's time.
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Zacks Rank & Stocks to Consider Apogee currently carries a Zacks Rank #4 (Sell). Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report To read this article on Zacks.com click here. Price Performance Shares of Apogee have underperformed the industry in a year's time.
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Price Performance Shares of Apogee have underperformed the industry in a year's time. The stock has lost 16.6%, while the industry has recorded growth of 5.1%. The company also narrowed its revenue growth guidance to around 20% due to hurricane-related delays.
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6cd86fd9-c464-41a0-92f8-0a170c6b8f98
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722145.0
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2018-01-12 00:00:00 UTC
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Noteworthy ETF Outflows: FXR, DE, ETN, PH
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows-fxr-de-etn-ph-2018-01-12
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (Symbol: FXR) where we have detected an approximate $388.2 million dollar outflow -- that's a 17.8% decrease week over week (from 51,700,002 to 42,500,002). Among the largest underlying components of FXR, in trading today Deere & Co. (Symbol: DE) is up about 1.6%, Eaton Corp plc (Symbol: ETN) is down about 0.1%, and Parker Hannifin Corp (Symbol: PH) is higher by about 0.2%. For a complete list of holdings, visit the FXR Holdings page » The chart below shows the one year price performance of FXR, versus its 200 day moving average:
Looking at the chart above, FXR's low point in its 52 week range is $33.02 per share, with $42.369 as the 52 week high point - that compares with a last trade of $42.35. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (Symbol: FXR) where we have detected an approximate $388.2 million dollar outflow -- that's a 17.8% decrease week over week (from 51,700,002 to 42,500,002). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the FXR Holdings page » The chart below shows the one year price performance of FXR, versus its 200 day moving average: Looking at the chart above, FXR's low point in its 52 week range is $33.02 per share, with $42.369 as the 52 week high point - that compares with a last trade of $42.35. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (Symbol: FXR) where we have detected an approximate $388.2 million dollar outflow -- that's a 17.8% decrease week over week (from 51,700,002 to 42,500,002).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (Symbol: FXR) where we have detected an approximate $388.2 million dollar outflow -- that's a 17.8% decrease week over week (from 51,700,002 to 42,500,002). For a complete list of holdings, visit the FXR Holdings page » The chart below shows the one year price performance of FXR, versus its 200 day moving average: Looking at the chart above, FXR's low point in its 52 week range is $33.02 per share, with $42.369 as the 52 week high point - that compares with a last trade of $42.35. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (Symbol: FXR) where we have detected an approximate $388.2 million dollar outflow -- that's a 17.8% decrease week over week (from 51,700,002 to 42,500,002). For a complete list of holdings, visit the FXR Holdings page » The chart below shows the one year price performance of FXR, versus its 200 day moving average: Looking at the chart above, FXR's low point in its 52 week range is $33.02 per share, with $42.369 as the 52 week high point - that compares with a last trade of $42.35. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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3a60086f-0f61-417b-b84d-341314c46932
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722146.0
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2018-01-12 00:00:00 UTC
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Caterpillar Forged Ahead in 2017: Can It Sustain the Thrust?
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DE
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https://www.nasdaq.com/articles/caterpillar-forged-ahead-in-2017%3A-can-it-sustain-the-thrust-2018-01-12
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nan
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nan
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Caterpillar Inc.CAT made a comeback in 2017 driven by strength in the Asia Pacific region and relentless focus on cutting costs. In fact, this is evident from the mining and equipment behemoth's return to top and bottom-line growth. Retail sales growth entered the positive trajectory in March following an unprecedented stretch of declines for 51 months and has shown significant improvement ever since. With its end markets - construction, mining and energy showing positive momentum lately, the company is likely to report strong results for the final quarter of 2017 and seems poised for an improved 2018.
Stellar Share Performance in the Past Year
After bearing the brunt of negative trends in past few years, Caterpillar's shares surged around 79.1% in the past year, outperforming its industry 's growth of 76.8% as well as the S&P500's rise of 18.2%. In fact, Caterpillar was one of the top five performing stocks in Dow Jones industrial average in 2017.
Notably, Caterpillar touched a 52-week high of $169.53 on Jan 11. The company has a market cap of roughly $100.7 billion and average volume of shares traded in the last three months is around 3.86 million.
What Stoked the Stellar Performance?
Caterpillar started scripting its turnaround story in 2017 with cost-cutting efforts in the wake of a weak mining sector. The company reported year-over-year improvement in the first quarter of 2017 in both top and bottom lines for the first time in 10 quarters. Backlog also improved on a year-over-year basis for the first time since third-quarter 2014. Strong Asia Pacific markets also drove the results. The company continued to report growth in both top and bottom lines in the second and third quarters as well.
Another noteworthy improvement in 2017 was Caterpillar's retail sales growth graph returning to positive in March. Since then, retail sales growth has remained positive, averaging 11% till November. Per latest figures, Caterpillar reported a rise of 26% in global retail sales for the three months ended November 2017 - its best performance in 2017.
Given that the company had suffered a drop in earnings in 2015 and 2016 affected by weak end-user demand in most of the industries it served, this turnaround performance was indeed a relief for the investors. Upbeat results, encouraging order rates, encouraging economic indicators and an increasing backlog have fueled the share price.
Further, Caterpillar hiked guidance three times in 2017. At its first-quarter 2017 conference call, Caterpillar had issued a revenue guidance range of $38-$41 billion and earnings guidance of $3.75 per share for 2017. The latest guidance is now at $44 billion for revenues and earnings per share of $6.25. The mid-point of the revenues and earnings guidance reflects a year-over-year growth of 14% and 83% respectively. The Zacks Consensus Estimate for 2017 for revenues is at $44.52 billion and for earnings at $6.46, both ahead of the company's guidance.
Also, Caterpillar's share price got a much needed boost with the victory of President Trump as the company is touted to be one of the biggest beneficiaries from his plans of infrastructure spending.
What Turned the Tide in Favor?
In Sep 2015, Caterpillar set upon a major restructuring by retrenching employees and closing or consolidating 30 facilities globally, that would decrease manufacturing square footage by more than 10%. With actions expected through 2018, once fully implemented, the plan would aid in lowering annual operating costs by about $1.5 billion. These costs savings helped the behemoth sustain margins in the wake of weak revenues. Moreover, strength in Asia Pacific sales as well as in the Construction sector helped propel revenues.
What to Expect from Q4 Results?
For fourth-quarter 2017, the Zacks Consensus Estimate for earnings projects a year-over-year growth of 108% on the back of 25% rise in revenues. Consequently, Caterpillar is set to deliver fourth consecutive quarter of both top and bottom-line growth. The Zacks Consensus Estimate for the fourth quarter for earnings and revenues are pegged at $1.73 billion and $11.97 billion, respectively.
Caterpillar, Inc. Price and EPS Surprise
Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote
Caterpillar has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 53.06%. Our proven model shows that the company is likely to beat earnings in the fourth quarter when it reports results on Jan 25, as it has the right combination of two key ingredients - a positive Earnings ESP of 3.76% and Zacks Rank #2 (Buy). A positive ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Better Performance Ahead
The Zacks Consensus Estimate for 2017 and 2018 reflect healthy growth of 88.9% and 21.5%, respectively. Estimates for Caterpillar have moved up in the past 30 days, reflecting the optimistic outlook of analysts. The earnings estimate for 2017 has surged 23% while that of 2018 has moved north by 16%, in the past 90 days. The stock has an estimated long-term earnings growth rate of 10.3%.
Leading indicators of U.S. construction signal robust conditions ahead, that bodes well for Caterpillar. In China, the construction industry is improving owing to government spending. Recently, the Resource Industries segment has also shown considerable improvement. There exists key opportunities in the precious metals sector as miners resume projects that were placed in the back burner and expand current operations thanks to the recent rally in metal prices. Strength in onshore North America oil and gas will drive results. Shipments to North America gas compression customers will improve driven largely by demand for reciprocating engines. Transportation is anticipated to grow, as higher rail traffic has propped up demand for rail services. All these factors, along with savings from restricting actions will boost revenues and earnings.
We believe that implementation of Trump administration's growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will be a boon for Caterpillar. Further, manufacturing is likely to get a boost this year from $1.5 trillion tax cut approved by the Republican-controlled U.S. Congress. The overhaul of the tax code resulted in the slashing of the corporate income tax rate to 21% from 35%.
Caterpillar's Zacks Rank #2 (Buy) combined with a VGM Score of B makes it a compelling investment. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here .
Other Stocks to Consider
Other top-ranked stocks in the same sector include Deere & Company DE , H&E Equipment Services, Inc. HEES and Kennametal Inc. KMT . While Deere sports a Zacks Rank #1, Astec and Kennametal carry a Zacks Rank #2.
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 59% in the past year.
H&E Equipment Services has a long-term earnings growth rate of 18.56%. Its shares have rallied 86% in the past year.
Kennametal has a long-term earnings growth rate of 8.3%. The company's shares have been up 49% in a year.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Caterpillar's share price got a much needed boost with the victory of President Trump as the company is touted to be one of the biggest beneficiaries from his plans of infrastructure spending. In Sep 2015, Caterpillar set upon a major restructuring by retrenching employees and closing or consolidating 30 facilities globally, that would decrease manufacturing square footage by more than 10%. Caterpillar Inc.CAT made a comeback in 2017 driven by strength in the Asia Pacific region and relentless focus on cutting costs.
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Per latest figures, Caterpillar reported a rise of 26% in global retail sales for the three months ended November 2017 - its best performance in 2017. Caterpillar, Inc. Price and EPS Surprise Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote Caterpillar has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 53.06%. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Caterpillar, Inc. Price and EPS Surprise Caterpillar, Inc. Price and EPS Surprise | Caterpillar, Inc. Quote Caterpillar has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 53.06%. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Caterpillar Inc.CAT made a comeback in 2017 driven by strength in the Asia Pacific region and relentless focus on cutting costs.
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Our proven model shows that the company is likely to beat earnings in the fourth quarter when it reports results on Jan 25, as it has the right combination of two key ingredients - a positive Earnings ESP of 3.76% and Zacks Rank #2 (Buy). Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential. Caterpillar Inc.CAT made a comeback in 2017 driven by strength in the Asia Pacific region and relentless focus on cutting costs.
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995fc878-456c-4af1-922b-bfc4ea4d4cad
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722147.0
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2018-01-11 00:00:00 UTC
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Avery Dennison (AVY) Grows on Acquisitions as Costs Flare Up
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https://www.nasdaq.com/articles/avery-dennison-avy-grows-on-acquisitions-as-costs-flare-up-2018-01-11
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On Jan 10, we issued an updated research report on Avery Dennison CorporationAVY . The company is poised to gain from its focus on productivity and acquisitions. However, escalating costs are expected to affect results.
Acquisitions Drive Avery Dennison's Growth
Avery Dennison continues to increase the pace of investment in order to leverage its specialty labels, graphics and reflective solutions business. The acquisitions of Mactac Europe, Hanita Coatings and Ink Mill, as well as the company's investment to expand the plant in Luxembourg reflect its efforts to grow in the space.
In second-quarter 2017, the company acquired Yongle Tape Company Ltd. - a manufacturer of specialty tapes and related products used in a variety of industrial market. Avery Dennison has also acquired Finesse Medical, a maker of materials used for wound care and skin treatments. Finesse Medical is a strategic fit with Avery Dennison's Vancive Medical Technologies.
Focus on Productivity to Fuel Sales
Avery Dennison has been focusing on efforts to drive productivity and increasing its investments to support growth. Its Label and Graphic Materials segment will benefit from growth in emerging markets, including high single-digit growth in India and China.
Further, the company's Retail Branding and Information Solutions segment continues to perform well, backed by the business model transformation that has enabled it to gain market share, while driving significant margin expansion. Avery Dennison also boosted this segment's competitiveness through strategic pricing initiatives.
Escalating Costs to Impede Near-Term Profit
Avery Dennison expects that one-time transition costs related to the acquisition of Yongle will impact margins in the Industrial and Healthcare Materials segment in the fourth quarter. In addition, the company might witness higher interest expense due to elevated debt levels following the Yongle and Finesse acquisitions.
Share Price Performance
Avery Dennison has outperformed its industry with respect to price performance in a year's time. The stock has appreciated around 64.4%, while the industry has recorded growth of 51.5% during the same time frame.
Zacks Rank & Stocks to Consider
Avery Dennison currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kennametal Inc. KMT . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kennametal carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 33.6%, over the past six months.
Caterpillar has a long-term earnings growth rate of 10.3%. The company's shares have been up 53.3% during the same time frame.
Kennametal has a long-term earnings growth rate of 8.3%. The stock has gained 30.5% in six months' time.
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Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Avery Dennison Corporation (AVY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, the company's Retail Branding and Information Solutions segment continues to perform well, backed by the business model transformation that has enabled it to gain market share, while driving significant margin expansion. On Jan 10, we issued an updated research report on Avery Dennison CorporationAVY . Acquisitions Drive Avery Dennison's Growth Avery Dennison continues to increase the pace of investment in order to leverage its specialty labels, graphics and reflective solutions business.
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Acquisitions Drive Avery Dennison's Growth Avery Dennison continues to increase the pace of investment in order to leverage its specialty labels, graphics and reflective solutions business. While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kennametal carry a Zacks Rank #2 (Buy). Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Acquisitions Drive Avery Dennison's Growth Avery Dennison continues to increase the pace of investment in order to leverage its specialty labels, graphics and reflective solutions business. Zacks Rank & Stocks to Consider Avery Dennison currently carries a Zacks Rank #3 (Hold). Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank & Stocks to Consider Avery Dennison currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kennametal Inc. KMT . On Jan 10, we issued an updated research report on Avery Dennison CorporationAVY .
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394f5288-d7c9-433e-89ca-950f888ff7bb
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722148.0
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2018-01-10 00:00:00 UTC
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Apogee (APOG) Hikes Dividend, Share Repurchase Authorization
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https://www.nasdaq.com/articles/apogee-apog-hikes-dividend-share-repurchase-authorization-2018-01-10
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Apogee Enterprises, Inc. 's APOG Board of Directors has approved a 12.5% hike in quarterly dividend and also increased existing share repurchase authorization by 1 million shares.
The company will now reward shareholders with a quarterly dividend payout of 15.75 cents per share compared with the current 14.0 cents. This translates to a dividend of 63 cents per share on an annualized basis. Based on the current 28.4 million shares outstanding, the hiked dividend will translate to a total payout of $17.9 million.
The raised dividend will be paid on Feb 14 to shareholders on record as of Jan 30. Based on the closing price of $46.00 as of Jan 9, the increased dividend translates to a yield of 1.37%. Apogee's current dividend yield is much higher than the industry yield of 0.32%.
Also with the increase in share repurchase authorization, the company's total available share repurchase program is currently at approximately 1.5 million shares. The increase in the authorization positions the company to occasionally buy back stock to offset dilution from its stock compensation programs.
Apogee, a leader in technologies for design and development of value-added glass products, possesses a strong cash balance that supports its effective capital deployment. The company remains focused on boosting shareholders' value through dividend hikes as well as share buybacks. Further, it increases dividend payout each year. The last dividend hike was announced on Jan 11, 2016, when the company had raised the payout by 12% to 14 cents.
Apogee reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. As of the end of the quarter, Apogee had cash and cash equivalents of $12.8 million and debt-to-capitalization ratio of 30.84%.
During third-quarter 2018earnings call Apogee lowered fiscal 2018 guidance due to lesser-than-expected volume and pricing, primarily in the architectural glass segment, and higher-than-expected health care costs. It trimmed earnings per share guidance for the fiscal year to the range of $2.58-$2.68 from the previous band of $3.05-$3.25.
Apogee has underperformed the industry with respect to price performance over the past year. The stock has lost around 17.3%, while the industry recorded growth of 6.3%.
For fiscal 2019, Apogee anticipates double-digit revenue growth and triple-digit basis-point improvement in operating margin. The company expects to incur around $4.5 million for restructuring projects, which is likely to yield roughly $4 million in annual savings in fiscal 2019 and beyond.
The company will gain on solid U.S. commercial construction markets, healthy backlog and a solid pipeline of projects, as well as encouraging external market metrics. Further, Apogee's focus on executing growth strategies and productivity initiatives will fortify business. Its focus on cost-reduction actions will also stoke growth.
In line with this, Apogee recently announced details of the planned restructuring per which, the company will close its Viracon architectural glass plant in St. George, UT, to counter the headwinds of the glass business. The company remains confident that despite the closure, given the capacity additions and productivity investments made over the past five years, it will have adequate glass capacity to cater to the peak commercial construction market demand.
Zacks Rank & Stocks to Consider
Apogee currently carries a Zacks Rank #5 (Sell).
Better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Caterpillar Inc. CAT . While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Caterpillar carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 57% in the past year.
Kennametal has a long-term earnings growth rate of 8.3%. The company's shares have been up 44% in a year.
Caterpillar has a long-term earnings growth rate of 10.3%. Caterpillar's shares have clocked a gain of 76% in the past year.
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Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apogee, a leader in technologies for design and development of value-added glass products, possesses a strong cash balance that supports its effective capital deployment. Better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Caterpillar Inc. CAT . Apogee Enterprises, Inc. 's APOG Board of Directors has approved a 12.5% hike in quarterly dividend and also increased existing share repurchase authorization by 1 million shares.
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While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Caterpillar carry a Zacks Rank #2 (Buy). Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises, Inc. 's APOG Board of Directors has approved a 12.5% hike in quarterly dividend and also increased existing share repurchase authorization by 1 million shares.
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Apogee Enterprises, Inc. 's APOG Board of Directors has approved a 12.5% hike in quarterly dividend and also increased existing share repurchase authorization by 1 million shares. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The company will now reward shareholders with a quarterly dividend payout of 15.75 cents per share compared with the current 14.0 cents.
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The company remains focused on boosting shareholders' value through dividend hikes as well as share buybacks. Apogee reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. The stock has lost around 17.3%, while the industry recorded growth of 6.3%.
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158f44d0-089f-4b3a-9a50-61ba830acd85
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722149.0
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2018-01-10 00:00:00 UTC
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Zacks Investment Ideas feature highlights: NVIDIA, Deere & Company and DXC Technology
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-nvidia-deere-company-and-dxc-technology-2018-01
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For Immediate Release
Chicago, IL - January 10, 2018 - Today, Zacks Investment Ideas feature highlights Features: NVIDIA CorporationNVDA , Deere & CompanyDE and DXC TechnologyDXC .
3 Stocks Rising into Their Earnings Reports
Eat your heart out Christmastime. Here at Zacks, our favorite season is Earnings Season…and we get four of them each year! It's just about time for the next one, and this more than 8-year long bull market has taught us not to fear companies that are rising into their report.
With that in mind, today we're focused on the Zacks #1 Rank Uptrends screen. The stocks that pass these parameters are strong buys that are approaching or at their 52-week highs.
Below are three stocks that have passed this screen's criteria. They are Strong buys that are outpacing the market….and they are all scheduled to report next month. Make sure to click on the screen above to learn about the parameters and see the full list of names.
NVIDIA Corporation
Earnings estimates for NVIDIA Corporation soared in the double digits following its fiscal third quarter report a couple of months ago, but haven't moved much since then. Fortunately, we are just a little more than a month away from this chip-making giant's fiscal fourth quarter numbers. Given this company's penchant for beating quarterly EPS expectations (topping in 19 out of the last 20) and its ongoing innovations, there's an excellent chance that NVDA will be outperforming again when it reports on February 8…leading to another round of rising estimates.
NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games. As if that wasn't cool enough, the company has also become a leader in other intriguing fields like self-driving cars and artificial intelligence. With such emerging technologies providing a solid foundation, NVDA soared by more than 85% in 2017. And with this hot start to 2018, the company has advanced another 10% in just the past few days.
In its fiscal third quarter, earnings per share of $1.33 crushed the Zacks Consensus Estimate of 94 cents by 41.5%. The company has now registered a positive surprise in 10 straight quarters, averaging 33.5% in the past four. Revenues jumped 31.5% to $2.64 billion thanks to growth across all of its platforms. The Zacks Consensus Estimate was only expected $2.36 billion. For example, its GPU business jumped 31% to $2.22 billion, while emerging fields like AI also gained strength.
Following the report, earnings estimates for this fiscal year (ending this month) jumped 16% to $4.19 per share from $3.61. The Zacks Consensus Estimate for next fiscal year (ending January 2019) increased 18.2% to $4.67 per share, which suggests year-over-year growth of 11.5%. And this is where the expectations remain to this day, having not moved in the past 30 days. But that's likely to change when NVDA reports again early next month.
Deere & Company
Take a look at that chart below. It's not easy to find such a good-looking chart outside of technology these days. Deere & Company hasn't missed quarterly earnings expectations in years and its stock has zoomed higher by approximately 54% in the past 12 months. This agriculture and construction equipment company has been impressive for a long time, but it's not resting on its laurels.
Last month, DE closed its more than $5 billion acquisition of Germany-based Wirtgen, the world's leading road-construction equipment maker. The company is looking to become as much a household name globally as it already is here in the U.S.A. The move catapults DE into an industry leader in global road construction and is expected to contribute around $3.1 billion in net sales in fiscal 2018.
The next quarterly report drops on February 16 and currently has an Earnings ESP of nearly 16%, which can be attributed to a mixture of the acquisition, strong demand and its fantastic record of outperformance. In its fiscal fourth quarter, earnings per share of $1.57 topped the Zacks Consensus Estimate by 7.5%, completing a four-quarter average surprise of 19.5%. For all of fiscal 2017, earnings per share of $6.68 bettered our estimate of $6.51. Revenues also outpaced Zacks expectations for both the quarter and year.
Looking forward, DE expects net sales to be up about 19% year over year in fiscal 2018 with net income at around $2.6 billion. Total equipment sales are expected to increase 38% in the first quarter and 22% in fiscal 2018. In other words, the company expects demand to continue. Given the strong quarter and guidance, analysts raised estimates in the aftermath.
The Zacks Consensus Estimate for this fiscal year (ending October 2018) has gained 15% in the past two months to $7.95 per share. Most impressively though, earnings are then forecasted to rise another 20% next fiscal year (ending October 2019) to $9.55, which has advanced more than 21% in the past 60 days.
DXC Technology
DXC Technology ended the first week of 2018 by eclipsing $100 a share on Friday, which means this IT services company has now soared approximately 70% over the past 12 months. Earnings estimates have also been improving for this Zacks Rank #1 (Strong Buy) stock, especially since its fiscal second quarter report from early November. Now we are less than a month away from its next release on February 1.
DXC came together from the merger of Computer Sciences Corp. with the Enterprise Services Division of Hewlett Packard Enterprise. These days, it is the world's second largest end-to-end IT services company. But it's really just getting started. The merger opens up tons of possibilities for insurance, healthcare and financial services in spaces like transportation, pharma and technology, among others.
The company is on an epic streak of positive earnings surprises (see graph below). It has amassed an average beat of more than 25% in just the past four quarters. Most recently, it reported earnings per share of $1.93 for its fiscal second quarter, easily eclipsing the Zacks Consensus Estimate of $1.53 by more than 26%. Revenues of $6.163 billion was even more impressive as that skyrocketed by nearly 230% year over year, while still beating our expectations of $5.993 billion.
DXC raised its non-GAAP EPS outlook for fiscal 2018 to between $7.25 and $7.75, compared to the previous guidance of $6.50 to $7. Revenues are still expected at $24 billion to $24.5 billion. The Zacks Consensus Estimate for this fiscal year (ending March 2018) is at $7.51, which marks gains of 10% over the past 3 months and 4% in the past two. More importantly, earnings for next fiscal year (ending March 2019) are expected to soar from the previous year by more than 15% to $8.65 per share. This guidance is up 5.4% in 3 months and 2.6% in two.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Deere & Company (DE): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The next quarterly report drops on February 16 and currently has an Earnings ESP of nearly 16%, which can be attributed to a mixture of the acquisition, strong demand and its fantastic record of outperformance. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. For Immediate Release Chicago, IL - January 10, 2018 - Today, Zacks Investment Ideas feature highlights Features: NVIDIA CorporationNVDA , Deere & CompanyDE and DXC TechnologyDXC .
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - January 10, 2018 - Today, Zacks Investment Ideas feature highlights Features: NVIDIA CorporationNVDA , Deere & CompanyDE and DXC TechnologyDXC . NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games.
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Deere & Company hasn't missed quarterly earnings expectations in years and its stock has zoomed higher by approximately 54% in the past 12 months. Click to get this free report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - January 10, 2018 - Today, Zacks Investment Ideas feature highlights Features: NVIDIA CorporationNVDA , Deere & CompanyDE and DXC TechnologyDXC .
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For Immediate Release Chicago, IL - January 10, 2018 - Today, Zacks Investment Ideas feature highlights Features: NVIDIA CorporationNVDA , Deere & CompanyDE and DXC TechnologyDXC . NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games. As if that wasn't cool enough, the company has also become a leader in other intriguing fields like self-driving cars and artificial intelligence.
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722150.0
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2018-01-09 00:00:00 UTC
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Packaging Corporation Hits 52-Week High: What's Driving It?
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https://www.nasdaq.com/articles/packaging-corporation-hits-52-week-high%3A-whats-driving-it-2018-01-09
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Shares of Packaging Corporation of AmericaPKG scaled a 52-week high of $130.19 on Jan 8, eventually closing lower at $129.58. The gain is driven by its solid performance in third-quarter 2017, encouraging outlook and the Sacramento Container acquisition.
The company has a market cap of $12 billion. Over the last three months, its average volume of shares traded is approximately 721K. Also, Packaging Corporation surpassed the Zacks Consensus Estimate in three out of the trailing four quarters, with an average positive earnings surprise of 2.64%.
Price Performance
Notably, the stock has gained 47.3% in a year's time, higher than the S&P 500's gain of 21.3%. Packaging Corporation has also outperformed the industry 's gain of 16.8% during the same time frame with respect to price performance.
What Led to the 52-Week High?
Packaging Corporation's earnings and sales improved year over year in the third quarter, thus fueling the share price appreciation. The company projects packaging segment demand to remain strong in fourth-quarter 2017 compared to the prior quarter. Further, the implementation of price increases will aid margin performance in the next quarter.
Packaging Corporation of America Price and Consensus
Packaging Corporation of America Price and Consensus | Packaging Corporation of America Quote
Packaging Corporation also believes production in 2017 will benefit from improvements on both DeRidder mill No. 1 and mill No. 3. Its other mills also continue to benefit from the continued attention on improving the efficiencies. Thus, the company estimates production to be up probably 150,000 tons in 2017 over 2016.
Notably, Packaging Corporation has been active on the acquisition front for the last few years. It bought corrugated-products producer Tim-Bar Corporation for $386 million in August 2016 and acquired corrugated manufacturer Columbus Container for $100 million later that November.
Further, its acquisition of Sacramento Container will boost the company's operations both geographically and strategically. Notably, Packaging Corporation's shares have gained more than 10% since it acquired all assets of Sacramento Container for $265 million on Oct 2, 2017. The company expects that the contribution from this acquisition will drive fourth-quarter performance.
The above-mentioned tailwinds raised investors' optimism on the stock and are anticipated to boost the company's share price in the days ahead.
Zacks Rank & Stocks to Consider
Packaging Corporation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include Deere & Company DE , Graphic Packaging Holding Company GPK and Sonoco Products Company SON . While Deere sports a Zacks Rank #1 (Strong Buy), Graphic Packaging and Sonoco carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 25.7%, over the past six months.
Graphic Packaging has a long-term earnings growth rate of 5%. The company's shares have been up 17% during the same time frame.
Sonoco has a long-term earnings growth rate of 4.7%. Shares of the company have increased 6% during the same time period.
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Sonoco Products Company (SON): Free Stock Analysis Report
Packaging Corporation of America (PKG): Free Stock Analysis Report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks' Best Private Investment Ideas While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public. Over the last three months, its average volume of shares traded is approximately 721K. The company projects packaging segment demand to remain strong in fourth-quarter 2017 compared to the prior quarter.
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Packaging Corporation of America Price and Consensus Packaging Corporation of America Price and Consensus | Packaging Corporation of America Quote Packaging Corporation also believes production in 2017 will benefit from improvements on both DeRidder mill No. Some better-ranked stocks in the same sector include Deere & Company DE , Graphic Packaging Holding Company GPK and Sonoco Products Company SON . Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Packaging Corporation of America Price and Consensus Packaging Corporation of America Price and Consensus | Packaging Corporation of America Quote Packaging Corporation also believes production in 2017 will benefit from improvements on both DeRidder mill No. Some better-ranked stocks in the same sector include Deere & Company DE , Graphic Packaging Holding Company GPK and Sonoco Products Company SON . Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Packaging Corporation of America Price and Consensus Packaging Corporation of America Price and Consensus | Packaging Corporation of America Quote Packaging Corporation also believes production in 2017 will benefit from improvements on both DeRidder mill No. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. Over the last three months, its average volume of shares traded is approximately 721K.
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09166b2e-04f7-49df-9a7e-80bcd672cf26
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722151.0
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2018-01-09 00:00:00 UTC
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Bull of the Day: Rush Enterprises (RUSHA)
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DE
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https://www.nasdaq.com/articles/bull-day-rush-enterprises-rusha-2018-01-09
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nan
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nan
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Rush Enterprises (RUSHA) owns and operates the biggest network of commercial vehicle dealerships in the U.S., with over 100 locations in 22 states.
From Peterbilt heavy-duty trucks to John Deere (DE) construction equipment, its dealerships provide an integrated, one-stop source for new and used heavy-duty trucks and construction equipment; aftermarket parts, service and body shop facilities; and a wide array of financial services.
Rush was actually the first automotive or truck dealer to go public-its IPO was in 1996-and this Zacks Rank #1 (Strong Buy) stock could see huge gains going forward, especially in this current market environment.
Strong Third Quarter Results
Back in October, Rush reported strong third quarter results across the board.
Earnings came in at 72 cents a share, a record high for the company and soaring way past the Zacks Consensus of 48 cents per share. Net income was $29.8 million compared to $14.9 million reported in the year ago quarter.
Total revenues were $1.257 billion, also surpassing our consensus estimate and growing 14.7% year-over-year, while parts, service and body shop revenues increased 11.7% to $375.8 million.
U.S. Class 8 truck sales of 51,574 units jumped 11%, outpaced the broader industry, and accounted for 7.1% of the U.S. Class 8 truck market. The company's Class 4-7 medium-duty sales were also on the rise last quarter, spiking 14.5% to over 61,000 units.
Rush attributed this growth mainly to "increased activity from energy customers," and noted that vehicles sales remain "solid" in other industries like construction, refuse, and general freight, among others.
Rising Earnings Estimates
As a result, growth estimates have been steadily increasing, with analysts growing more and more bullish on RUSHA lately.
Earnings are expected to grow over 77% for the current quarter, and revenues could see growth of 17.4% in the same time frame.
As for the current year, year-over-year earnings growth sits at roughly 92%, with one analyst revising their estimate upwards in the last 60 days. The current consensus is $2.17 per share, up from $2.08 just two months ago.
This sentiment is even carrying over into next year, and Rush's earnings are projected to rise about 14.6%. The Zacks Consensus has jumped from $2.32 to $2.49 in the past 60 days.
Can the Rally Continue?
2017 was a good year for RUSHA, and over the past one year, shares have surged well over 57%.
Rush Enterprises, Inc. Price, Consensus and EPS Surprise
Rush Enterprises, Inc. Price, Consensus and EPS Surprise | Rush Enterprises, Inc. Quote
Rush is now trading with a forward P/E of 20.
And, it helps that the company is in a strong industry at the moment. Automotive-Retail and Wholesale sits in the top 19% of all industries that we cover, and returned nearly 11% over the last year.
2018 could be another strong year for the automotive retailer, and if customer demand remains solid and the company continues to advance their strategic initiatives, Rush looks to be an intriguing opportunity for investors.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits. Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rush was actually the first automotive or truck dealer to go public-its IPO was in 1996-and this Zacks Rank #1 (Strong Buy) stock could see huge gains going forward, especially in this current market environment. 2018 could be another strong year for the automotive retailer, and if customer demand remains solid and the company continues to advance their strategic initiatives, Rush looks to be an intriguing opportunity for investors. Rush Enterprises (RUSHA) owns and operates the biggest network of commercial vehicle dealerships in the U.S., with over 100 locations in 22 states.
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Click to get this free report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Rush Enterprises (RUSHA) owns and operates the biggest network of commercial vehicle dealerships in the U.S., with over 100 locations in 22 states. From Peterbilt heavy-duty trucks to John Deere (DE) construction equipment, its dealerships provide an integrated, one-stop source for new and used heavy-duty trucks and construction equipment; aftermarket parts, service and body shop facilities; and a wide array of financial services.
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2018 could be another strong year for the automotive retailer, and if customer demand remains solid and the company continues to advance their strategic initiatives, Rush looks to be an intriguing opportunity for investors. Click to get this free report Rush Enterprises, Inc. (RUSHA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Rush Enterprises (RUSHA) owns and operates the biggest network of commercial vehicle dealerships in the U.S., with over 100 locations in 22 states.
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2018 could be another strong year for the automotive retailer, and if customer demand remains solid and the company continues to advance their strategic initiatives, Rush looks to be an intriguing opportunity for investors. Rush Enterprises (RUSHA) owns and operates the biggest network of commercial vehicle dealerships in the U.S., with over 100 locations in 22 states. From Peterbilt heavy-duty trucks to John Deere (DE) construction equipment, its dealerships provide an integrated, one-stop source for new and used heavy-duty trucks and construction equipment; aftermarket parts, service and body shop facilities; and a wide array of financial services.
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d03002a3-0f13-48ed-97ee-7816a2ce2103
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722152.0
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2018-01-09 00:00:00 UTC
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5 Stocks Surging to Start the Year
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DE
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https://www.nasdaq.com/articles/5-stocks-surging-start-year-2018-01-09
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nan
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nan
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The market was on solid footing again today as the large caps of the Dow led the way higher. On the radar this month is a big earnings season which will help spell out what to expect for the rest of the year. While we're all looking at equities and cryptocurrencies the bond market is beginning to move. Rates on the 10-Year Treasury note topped 2.5% for the first time in months which has some of us wondering if this is finally the year that rates make their move.
Check out Dave's Daily Dive video above where I break down the market action today!!!
Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
But it doesn't stop there because the highlight of today's video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks that are breaking out to new 52-week highs today. These stocks have a ton of momentum behind them and are charging higher. The list of stocks I cover today include:
CBOE Holdings CBOE
E*TRADE Financial Corporation Price and Consensus
E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. It offers marketplaces for trading options on various market indexes; futures on the VIX Index; options on the stocks of individual corporations comprising equity options; and options on other exchange-traded products that include ETP options, such as exchange-traded funds and exchange-traded notes, as well as other index options.
Deere & Company DE
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. The company's Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, such as large, medium, and utility tractors; loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; related front-end harvesting equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment, including sprayers, nutrient management, and soil preparation machinery.
E*Trade Financial ETFC
E*TRADE Financial Corporation Price and Consensus
E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily deposits to retail investors; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients.
NVIDIA NVDA
NVIDIA Corporation Price and Consensus
NVIDIA Corporation Price and Consensus | NVIDIA Corporation Quote
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for deep learning, accelerated computing, and general purpose computing; and GRID for cloud-based visual computing users.
Statoil STO
Statoil ASA Price and Consensus
Statoil ASA Price and Consensus | Statoil ASA Quote
Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development and Production Norway; Development and Production International; Marketing, Midstream and Processing; and Other segments.
Now See All Our Private Trades
While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
E*TRADE Financial Corporation (ETFC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
CBOE Holdings, Inc. (CBOE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, such as large, medium, and utility tractors; loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; related front-end harvesting equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment, including sprayers, nutrient management, and soil preparation machinery. Rates on the 10-Year Treasury note topped 2.5% for the first time in months which has some of us wondering if this is finally the year that rates make their move. Check out Dave's Daily Dive video above where I break down the market action today!!!
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The list of stocks I cover today include: CBOE Holdings CBOE E*TRADE Financial Corporation Price and Consensus E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. E*Trade Financial ETFC E*TRADE Financial Corporation Price and Consensus E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. Click to get this free report E*TRADE Financial Corporation (ETFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report CBOE Holdings, Inc. (CBOE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The list of stocks I cover today include: CBOE Holdings CBOE E*TRADE Financial Corporation Price and Consensus E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. E*Trade Financial ETFC E*TRADE Financial Corporation Price and Consensus E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. Click to get this free report E*TRADE Financial Corporation (ETFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report CBOE Holdings, Inc. (CBOE): Free Stock Analysis Report To read this article on Zacks.com click here.
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But it doesn't stop there because the highlight of today's video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks that are breaking out to new 52-week highs today. The list of stocks I cover today include: CBOE Holdings CBOE E*TRADE Financial Corporation Price and Consensus E*TRADE Financial Corporation Price and Consensus | E*TRADE Financial Corporation Quote Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. from stocks under $10 to ETF and option moves .
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182dfbe5-16df-41b8-8a81-c429e38926ae
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722153.0
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2018-01-08 00:00:00 UTC
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Apogee Plans Restructuring, To Shut Down Viracon Glass Plant
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DE
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https://www.nasdaq.com/articles/apogee-plans-restructuring-to-shut-down-viracon-glass-plant-2018-01-08
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nan
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nan
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Apogee Enterprises, Inc.APOG recently announced details of the planned restructuring which was referred to in the third-quarter fiscal 2018 earnings release. Per the plan, the company will close its Viracon architectural glass plant in St. George, UT, to counter the headwinds of the glass business.
The company remains confident that despite the closure, given the capacity additions and productivity investments made over the past five years, the company will have adequate glass capacity to cater to the peak commercial construction market demand.
In the fiscal third-quarter earnings release, Apogee lowered the fiscal 2018 guidance due to lower-than-expected volume and pricing in the Architectural Glass segment. In the recently-reported quarter, the segment's revenues fell 9% year over year, largely due to delays resulting from hurricanes in Florida and a smaller number of large-scale projects. Further, the segment's operating income dropped as improved productivity couldn't offset the loss of business.
Apogee Enterprises, Inc. Price
Apogee Enterprises, Inc. Price | Apogee Enterprises, Inc. Quote
However, Apogee has been making significant investments in its Viracon architectural glass business, weakness in the architectural glass area remains a major concern for the business. Apogee expects that the Architectural Glass segment will be adversely affected by the intensifying competition in both large- and mid-sized projects, in turn putting more pressure on top- and bottom-line growth.
Thus, the company has decided to close the Viracon-St. George facility in March 2018. Apogee will incur a restructuring charge of approximately $4.5 million, or 11 cents per share in the fiscal 2018 fourth quarter, primarily related to the plant closure. This was reflected in the fiscal 2018 outlook. It expects a payback period of one year and the glass business will be beneficial as reduced cost will result in savings in fiscal 2019.
Moreover, Apogee has underperformed the industry with respect to price performance over the past year. The stock has lost around 15.3%, while the industry has recorded growth of 10.2% during the same time frame.
Apogee currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Caterpillar Inc. CAT . While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Caterpillar carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 25.1%, over the past six months.
Kennametal has a long-term earnings growth rate of 8.3%. The company's shares have been up 28% during the same time frame.
Caterpillar has a long-term earnings growth rate of 10.3%. Shares of the company have appreciated 50% during the same time period.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apogee Enterprises, Inc.APOG recently announced details of the planned restructuring which was referred to in the third-quarter fiscal 2018 earnings release. The company remains confident that despite the closure, given the capacity additions and productivity investments made over the past five years, the company will have adequate glass capacity to cater to the peak commercial construction market demand. In the recently-reported quarter, the segment's revenues fell 9% year over year, largely due to delays resulting from hurricanes in Florida and a smaller number of large-scale projects.
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While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Caterpillar carry a Zacks Rank #2 (Buy). Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises, Inc.APOG recently announced details of the planned restructuring which was referred to in the third-quarter fiscal 2018 earnings release.
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises, Inc.APOG recently announced details of the planned restructuring which was referred to in the third-quarter fiscal 2018 earnings release. The company remains confident that despite the closure, given the capacity additions and productivity investments made over the past five years, the company will have adequate glass capacity to cater to the peak commercial construction market demand.
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While Deere sports a Zacks Rank #1 (Strong Buy), Kennametal and Caterpillar carry a Zacks Rank #2 (Buy). Apogee Enterprises, Inc.APOG recently announced details of the planned restructuring which was referred to in the third-quarter fiscal 2018 earnings release. The company remains confident that despite the closure, given the capacity additions and productivity investments made over the past five years, the company will have adequate glass capacity to cater to the peak commercial construction market demand.
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a6127c6f-6493-460a-854b-25a94eea23ce
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722154.0
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2018-01-08 00:00:00 UTC
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Will Strong Order Activity at Astec Offset Headwinds in Q4?
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DE
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https://www.nasdaq.com/articles/will-strong-order-activity-at-astec-offset-headwinds-in-q4-2018-01-08
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nan
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nan
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On Jan 5, we issued an updated research report on Astec Industries, Inc. (ASTE). The company is poised to benefit from investment in infrastructure, introduction of new products, acquisitions as well as organic growth. However, its fourth-quarter results are likely to be hurt by product mix and holiday schedules.
In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets. The company identified significant design issues at the plant sites and is making necessary upgrades to achieve full production at both the sites. This affected third-quarter earnings by 59 cents in the third quarter. Adjusting for the wood pellet investment, Astec projects earnings in fourth-quarter 2017 to be slightly below third-quarter earnings.
The company remains cautious for the fourth quarter due to product mix and contract to delivery dates. Further, considering the Thanksgiving and Christmas holiday schedules, the company expects fourth quarter-2017 earnings per share to be sequentially lower. The company also stated it will not take an order for another pellet plant until it has passed the production test at the plants in Georgia and Arkansas.
The Zacks Consensus Estimate for the fourth quarter is at 45 cents, reflecting a year-over-year decline of 15.09%. Astec's earnings in the third quarter were pegged at 47 cents per shares, after adjusting for the wood pellet plant investment. Including this, the company had suffered a loss of 12 cents per share.
Consequently, Astec has underperformed its industry's performance with respect to share price since October. The stock gained around 12%, while the industry recorded growth of 29.6%. However, we believe there is scope for further upside as despite the current setback on the Georgia and Arkansas plants, the long-term outlook for pellet plants remains robust. Success at these sites will put the company in a strong leadership position for orders going forward. Including the recent investment, the company has invested approximately $31 million over seven years to develop this annual $100 million business.
Further, orders have been good in the Infrastructure group and Aggregate Mining group. The Infrastructure Group's revenues will benefit from infrastructure rebuild benefiting from the passage of the highway bill. In the Aggregate & Mining segment, there is pent-up demand for new quarries and the company will benefit as these translates into orders. Energy group continues to experience good order intake for products targeted at the construction industry along with increased order activity for water, oil and gas drilling products.
Growing part sales volume in the long term, along with competitive part sales and service sales will boost revenues in the future. Majority of customers in the United States have been experiencing a stable product market and the company remains focused on selling existing and new products. It remains optimistic regarding the infrastructure group's outlook on infrastructure-related equipment. Moreover, acquisitions remain a key piece of Astec's growth strategy along with organic growth and targeted sales growth efforts, both in the United States and international markets.
Astec carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Some better-ranked stocks in the same sector include Deere & Company, Sun Hydraulics Corporation (SNHY) and Caterpillar Inc. (CAT).
Deere has delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Its shares have gained 52% in the past year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sun Hydraulics, a Zacks Rank #1 stock, has an average positive earnings surprise of 9.58% in the trailing four quarters. Its shares have rallied 71% in the past year.
Caterpillar, has a Zacks Rank #2 (Buy) and an average positive earnings surprise of 53.06% in the trailing four quarters. Its shares have gained 75% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
On Jan 5, we issued an updated research report on Astec Industries, Inc.ASTE . The company is poised to benefit from investment in infrastructure, introduction of new products, acquisitions as well as organic growth. However, its fourth-quarter results are likely to be hurt by product mix and holiday schedules.
In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets. The company identified significant design issues at the plant sites and is making necessary upgrades to achieve full production at both the sites. This affected third-quarter earnings by 59 cents in the third quarter. Adjusting for the wood pellet investment, Astec projects earnings in fourth-quarter 2017 to be slightly below third-quarter earnings.
The company remains cautious for the fourth quarter due to product mix and contract to delivery dates. Further, considering the Thanksgiving and Christmas holiday schedules, the company expects fourth quarter-2017 earnings per share to be sequentially lower. The company also stated it will not take an order for another pellet plant until it has passed the production test at the plants in Georgia and Arkansas.
The Zacks Consensus Estimate for the fourth quarter is at 45 cents, reflecting a year-over-year decline of 15.09%. Astec's earnings in the third quarter were pegged at 47 cents per shares, after adjusting for the wood pellet plant investment. Including this, the company had suffered a loss of 12 cents per share.
Consequently, Astec has underperformed its industry 's performance with respect to share price since October. The stock gained around 12%, while the industry recorded growth of 29.6%. However, we believe there is scope for further upside as despite the current setback on the Georgia and Arkansas plants, the long-term outlook for pellet plants remains robust. Success at these sites will put the company in a strong leadership position for orders going forward. Including the recent investment, the company has invested approximately $31 million over seven years to develop this annual $100 million business.
Further, orders have been good in the Infrastructure group and Aggregate Mining group. The Infrastructure Group's revenues will benefit from infrastructure rebuild benefiting from the passage of the highway bill. In the Aggregate & Mining segment, there is pent-up demand for new quarries and the company will benefit as these translates into orders. Energy group continues to experience good order intake for products targeted at the construction industry along with increased order activity for water, oil and gas drilling products.
Growing part sales volume in the long term, along with competitive part sales and service sales will boost revenues in the future. Majority of customers in the United States have been experiencing a stable product market and the company remains focused on selling existing and new products. It remains optimistic regarding the infrastructure group's outlook on infrastructure-related equipment. Moreover, acquisitions remain a key piece of Astec's growth strategy along with organic growth and targeted sales growth efforts, both in the United States and international markets.
Astec carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Some better-ranked stocks in the same sector include Deere & Company DE , Sun Hydraulics Corporation SNHY and Caterpillar Inc. CAT .
Deere has delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Its shares have gained 52% in the past year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Sun Hydraulics, a Zacks Rank #1 stock, has an average positive earnings surprise of 9.58% in the trailing four quarters. Its shares have rallied 71% in the past year.
Caterpillar, has a Zacks Rank #2 (Buy) and an average positive earnings surprise of 53.06% in the trailing four quarters. Its shares have gained 75% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Astec Industries, Inc. (ASTE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sun Hydraulics Corporation (SNHY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, considering the Thanksgiving and Christmas holiday schedules, the company expects fourth quarter-2017 earnings per share to be sequentially lower. The company remains cautious for the fourth quarter due to product mix and contract to delivery dates. In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets.
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Energy group continues to experience good order intake for products targeted at the construction industry along with increased order activity for water, oil and gas drilling products. In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets. The company identified significant design issues at the plant sites and is making necessary upgrades to achieve full production at both the sites.
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In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets. The company identified significant design issues at the plant sites and is making necessary upgrades to achieve full production at both the sites. The company remains cautious for the fourth quarter due to product mix and contract to delivery dates.
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In early October, Astec announced that it has initiated significant design upgrades to customers' plants in Georgia and Arkansas to meet wood production for wood pellets. The company identified significant design issues at the plant sites and is making necessary upgrades to achieve full production at both the sites. The company remains cautious for the fourth quarter due to product mix and contract to delivery dates.
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dea355e1-8cd1-45d0-8ac9-4b4cfd782172
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722155.0
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2018-01-08 00:00:00 UTC
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TriMas Rides on Stable Orders, Hurricane Impact to Dent Q4
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https://www.nasdaq.com/articles/trimas-rides-on-stable-orders-hurricane-impact-to-dent-q4-2018-01-08
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nan
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nan
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On Jan 5, we issued an updated research report on TriMas Corporation (TRS). The company's upcoming fourth-quarter results will be hampered by the impact of Hurricane Harvey, currency volatility and uncertainty in the macroeconomic environment as well as escalating steel and resin prices. However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint.
Due to the Hurricane Harvey, TriMas' Lamons business idled six Gulf Coast branch locations and Houston main production facility for several days. A number of its customers' locations remained closed for much longer than expected due to prolonged equipment repairs. The hurricane largely led to production inefficiencies and increased off-standard costs given the overall disruption to operations. A secondary impact related to the idling of petrochemical facilities in the Gulf region resulted in resin pricing spiking sharply. Separately, another natural disaster impacted operations at one of TriMas' facilities. The tragic fires in Northern California resulted in the Rieke team having to stop production at its Rohnert Park facility for about a week. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter.
Further, steel prices have been increasing all year. Steel is the main input material to produce high-pressure cylinders, consequently, this is impacting Norris business. Particularly, TriMas experienced significantly elevated costs for coiled steel utilized in the manufacture of small high-pressure and acetylene cylinders in the third quarter further compressing margins. The company anticipates these steel costs and sales mix trends to continue into fourth-quarter 2017. As it is, TriMas' fourth quarter is typically the lowest sales and profit quarter, given lower levels of production activity due to holidays and year-end customer shutdowns.
Nevertheless, the company continues to see more stable order patterns from customers in the Aerospace segment and is optimistic that more consistent demand level will result in further opportunity for improved manufacturing efficiencies over time. It also continues to make progress improving the operational performance of plants. In its Packaging segment, TriMas continues to invest in new products and remains focused on sales initiatives to drive sustainable, long-term growth in this business.
Meanwhile, the company remains committed to exploring actions to improve manufacturing footprint and strategies to drive long-term success. It recently closed the sale of Mexico City facility. Following relocation to a new facility in San Miguel, TriMas immediately began marketing the old facility to secure a nice disposition. Additionally, the company is evaluating strategic options related to one of Lamons' branch manufacturing locations in Asia. TriMas is also in the process of exiting a location in Tulsa to further reduce 2018 infrastructure costs in Arrow Engine business.
TriMas currently carries a Zacks Rank #3 (Hold).
Share Price Performance
In the last six months, TriMas has outperformed the industry with respect to price performance. The stock gained around 26.8%, while the industry recorded growth of 9.9%.
Stocks That Warrant a Look
Some better-ranked stocks in the same sector include Deere & Company, Sun Hydraulics Corporation (SNHY) and Caterpillar Inc. (CAT).
Deere has delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Its shares have gained 52% in the past year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sun Hydraulics, another Zacks Rank #1 stock, has an average positive earnings surprise of 9.58% in the trailing four quarters. Its shares have rallied 71% in the past year.
Caterpillar, carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 53.06% in the trailing four quarters. Its shares have gained 75% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
On Jan 5, we issued an updated research report on TriMas CorporationTRS . The company's upcoming fourth-quarter results will be hampered by the impact of Hurricane Harvey, currency volatility and uncertainty in the macroeconomic environment as well as escalating steel and resin prices. However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint.
Due to the Hurricane Harvey, TriMas' Lamons business idled six Gulf Coast branch locations and Houston main production facility for several days. A number of its customers' locations remained closed for much longer than expected due to prolonged equipment repairs. The hurricane largely led to production inefficiencies and increased off-standard costs given the overall disruption to operations. A secondary impact related to the idling of petrochemical facilities in the Gulf region resulted in resin pricing spiking sharply. Separately, another natural disaster impacted operations at one of TriMas' facilities. The tragic fires in Northern California resulted in the Rieke team having to stop production at its Rohnert Park facility for about a week. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter.
Further, steel prices have been increasing all year. Steel is the main input material to produce high-pressure cylinders, consequently, this is impacting Norris business. Particularly, TriMas experienced significantly elevated costs for coiled steel utilized in the manufacture of small high-pressure and acetylene cylinders in the third quarter further compressing margins. The company anticipates these steel costs and sales mix trends to continue into fourth-quarter 2017. As it is, TriMas' fourth quarter is typically the lowest sales and profit quarter, given lower levels of production activity due to holidays and year-end customer shutdowns.
Nevertheless, the company continues to see more stable order patterns from customers in the Aerospace segment and is optimistic that more consistent demand level will result in further opportunity for improved manufacturing efficiencies over time. It also continues to make progress improving the operational performance of plants. In its Packaging segment, TriMas continues to invest in new products and remains focused on sales initiatives to drive sustainable, long-term growth in this business.
Meanwhile, the company remains committed to exploring actions to improve manufacturing footprint and strategies to drive long-term success. It recently closed the sale of Mexico City facility. Following relocation to a new facility in San Miguel, TriMas immediately began marketing the old facility to secure a nice disposition. Additionally, the company is evaluating strategic options related to one of Lamons' branch manufacturing locations in Asia. TriMas is also in the process of exiting a location in Tulsa to further reduce 2018 infrastructure costs in Arrow Engine business.
TriMas currently carries a Zacks Rank #3 (Hold).
Share Price Performance
In the last six months, TriMas has outperformed the industry with respect to price performance. The stock gained around 26.8%, while the industry recorded growth of 9.9%.
Stocks That Warrant a Look
Some better-ranked stocks in the same sector include Deere & Company DE , Sun Hydraulics Corporation SNHY and Caterpillar Inc. CAT .
Deere has delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Its shares have gained 52% in the past year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Sun Hydraulics, another Zacks Rank #1 stock, has an average positive earnings surprise of 9.58% in the trailing four quarters. Its shares have rallied 71% in the past year.
Caterpillar, carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 53.06% in the trailing four quarters. Its shares have gained 75% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sun Hydraulics Corporation (SNHY): Free Stock Analysis Report
TriMas Corporation (TRS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nevertheless, the company continues to see more stable order patterns from customers in the Aerospace segment and is optimistic that more consistent demand level will result in further opportunity for improved manufacturing efficiencies over time. However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter.
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However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter. Steel is the main input material to produce high-pressure cylinders, consequently, this is impacting Norris business.
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However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter. Steel is the main input material to produce high-pressure cylinders, consequently, this is impacting Norris business.
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However, we believe going forward, TriMas will gain from stable order patterns, investment in new products and focus on improving manufacturing footprint. Consequently, the company expects modest loss of production and inefficiencies in the fourth quarter. Steel is the main input material to produce high-pressure cylinders, consequently, this is impacting Norris business.
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42dde35c-62c9-4769-a834-009251881cab
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722156.0
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2018-01-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Microsoft, Intel, UnitedHealth, Mondelez and Deere
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-microsoft-intel-unitedhealth-mondelez-and-deere-2018-01
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For Immediate Release
Chicago, IL - January 08, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include MicrosoftMSFT , IntelINTC , UnitedHealthUNH , MondelezMDLZ and DeereDE .
Here are highlights from Friday's Analyst Blog:
Top Research Reports for Microsoft, Intel and UnitedHealth
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft, Intel and UnitedHealth. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-rated Microsoft 's shares have outperformed the Zacks Technology sector over the last year (up +38.6% versus +28.1%) The company is dealing with the recent security bug which poses a huge risk for users. In this context, it is rolling out patches to fix Windows kernels in order to address the vulnerability.
Additionally, Microsoft's recent blockchain deals with Hapoalim and Accenture and its Coco framework are tailwinds. The Zacks analyst expects rapid adoption of Azure and Office 365 to remain the key catalysts in the near future. Further, collaborations with the likes of Amazon, Red Hat, Symantec, Cray and PAREXEL are beneficial for the company's growth prospects.
Microsoft's strategic initiatives to enter the augmented reality and virtual reality market with the acquisition of Altspace VR and launch of mixed reality headsets are other positives. However, intense competition from Sony's PS4 is a headwind.
Shares of Intel have gained +21.8% year to date, underperforming the broader Zacks Technology sector as well as the red-hot semiconductors space, which are up +28.1% and +49.1%, respectively. But Intel is benefiting from robust performance of the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group. These segments form the crux of Intel's data-centric business model.
Further, the launch of Xeon Scalable, Core 8 chips, Myriad X and next-generation desktop processors are key catalysts. The new desktop processors are expected to help Intel's gaming endeavors amid stiff competition from AMD and NVIDIA. Moreover, the Core 8 launch is expected to boost Intel's PC market share.
However, recently, the company has encountered a major security issue. The bug is apparently present in nearly every Intel CPU made within the last decade. The security flaw could provide attackers with access to security keys, passwords, and cached files of a device's kernel memory. Stiff competition from peers adds to its woes.
UnitedHealth 's shares have outperformed the Zacks Medical Insurance industry in the last six months (up +20% vs. +18.9%). The Zacks analyst likes the company's robust Government business and continued strong performance at Optum. International business and strong capital position are its other positives.
The recent announced acquisition of a Chilean company will further expand its overseas business. It has been witnessing an increase in membership for the past many years.
On the back of its impressive earnings in the first nine months, the company raised its 2017 guidance. Its strong guidance for 2018 also instills investors' confidence in the company. It has reduced exposure to the troubled public exchange business. Though this move will shield it from losses in this business, premium revenues are likely to be affected. Charges related to Penn Treaty are other causes of concern.
Other noteworthy reports we are featuring today include Mondelez and Deere.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buy-rated Microsoft 's shares have outperformed the Zacks Technology sector over the last year (up +38.6% versus +28.1%) The company is dealing with the recent security bug which poses a huge risk for users. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Stocks recently featured in the blog include MicrosoftMSFT , IntelINTC , UnitedHealthUNH , MondelezMDLZ and DeereDE .
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Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include MicrosoftMSFT , IntelINTC , UnitedHealthUNH , MondelezMDLZ and DeereDE . Buy-rated Microsoft 's shares have outperformed the Zacks Technology sector over the last year (up +38.6% versus +28.1%) The company is dealing with the recent security bug which poses a huge risk for users.
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Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include MicrosoftMSFT , IntelINTC , UnitedHealthUNH , MondelezMDLZ and DeereDE . Buy-rated Microsoft 's shares have outperformed the Zacks Technology sector over the last year (up +38.6% versus +28.1%) The company is dealing with the recent security bug which poses a huge risk for users.
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Stocks recently featured in the blog include MicrosoftMSFT , IntelINTC , UnitedHealthUNH , MondelezMDLZ and DeereDE . Buy-rated Microsoft 's shares have outperformed the Zacks Technology sector over the last year (up +38.6% versus +28.1%) The company is dealing with the recent security bug which poses a huge risk for users. In this context, it is rolling out patches to fix Windows kernels in order to address the vulnerability.
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6e23d2d2-c13d-4800-96ad-c6c6475c4910
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722157.0
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2018-01-08 00:00:00 UTC
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3 Stocks Rising Into Their Reports
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https://www.nasdaq.com/articles/3-stocks-rising-their-reports-2018-01-08
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Eat your heart out Christmastime. Here at Zacks, our favorite season is Earnings Season…and we get four of them each year! It's just about time for the next one, and this more than 8-year long bull market has taught us not to fear companies that are rising into their report.
With that in mind, today we're focused on the Zacks #1 Rank Uptrends screen. The stocks that pass these parameters are strong buys that are approaching or at their 52-week highs.
Below are three stocks that have passed this screen's criteria. They are Strong buys that are outpacing the market….and they are all scheduled to report next month. Make sure to click on the screen above to learn about the parameters and see the full list of names.
NVIDIA Corporation ( NVDA )
Earnings estimates for NVIDIA Corporation (NVDA) soared in the double digits following its fiscal third quarter report a couple of months ago, but haven't moved much since then. Fortunately, we are just a little more than a month away from this chip-making giant's fiscal fourth quarter numbers. Given this company's penchant for beating quarterly EPS expectations (topping in 19 out of the last 20) and its ongoing innovations, there's an excellent chance that NVDA will be outperforming again when it reports on February 8…leading to another round of rising estimates.
NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games. As if that wasn't cool enough, the company has also become a leader in other intriguing fields like self-driving cars and artificial intelligence. With such emerging technologies providing a solid foundation, NVDA soared by more than 85% in 2017. And with this hot start to 2018, the company has advanced another 10% in just the past few days.
In its fiscal third quarter, earnings per share of $1.33 crushed the Zacks Consensus Estimate of 94 cents by 41.5%. The company has now registered a positive surprise in 10 straight quarters, averaging 33.5% in the past four. Revenues jumped 31.5% to $2.64 billion thanks to growth across all of its platforms. The Zacks Consensus Estimate was only expected $2.36 billion. For example, its GPU business jumped 31% to $2.22 billion, while emerging fields like AI also gained strength.
Following the report, earnings estimates for this fiscal year (ending this month) jumped 16% to $4.19 per share from $3.61. The Zacks Consensus Estimate for next fiscal year (ending January 2019) increased 18.2% to $4.67 per share, which suggests year-over-year growth of 11.5%. And this is where the expectations remain to this day, having not moved in the past 30 days. But that's likely to change when NVDA reports again early next month.
NVIDIA Corporation Price, Consensus and EPS Surprise
NVIDIA Corporation Price, Consensus and EPS Surprise | NVIDIA Corporation Quote
Deere & Company ( DE )
Take a look at that chart below. It's not easy to find such a good-looking chart outside of technology these days. Deere & Company (DE) hasn't missed quarterly earnings expectations in years and its stock has zoomed higher by approximately 54% in the past 12 months. This agriculture and construction equipment company has been impressive for a long time, but it's not resting on its laurels.
Last month, DE closed its more than $5 billion acquisition of Germany-based Wirtgen, the world's leading road-construction equipment maker. The company is looking to become as much a household name globally as it already is here in the U.S.A. The move catapults DE into an industry leader in global road construction and is expected to contribute around $3.1 billion in net sales in fiscal 2018.
The next quarterly report drops on February 16 and currently has an Earnings ESP of nearly 16%, which can be attributed to a mixture of the acquisition, strong demand and its fantastic record of outperformance. In its fiscal fourth quarter, earnings per share of $1.57 topped the Zacks Consensus Estimate by 7.5%, completing a four-quarter average surprise of 19.5%. For all of fiscal 2017, earnings per share of $6.68 bettered our estimate of $6.51. Revenues also outpaced Zacks expectations for both the quarter and year.
Looking forward, DE expects net sales to be up about 19% year over year in fiscal 2018 with net income at around $2.6 billion. Total equipment sales are expected to increase 38% in the first quarter and 22% in fiscal 2018. In other words, the company expects demand to continue. Given the strong quarter and guidance, analysts raised estimates in the aftermath.
The Zacks Consensus Estimate for this fiscal year (ending October 2018) has gained 15% in the past two months to $7.95 per share. Most impressively though, earnings are then forecasted to rise another 20% next fiscal year (ending October 2019) to $9.55, which has advanced more than 21% in the past 60 days.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote
DXC Technology ( DXC )
DXC Technology (DXC) ended the first week of 2018 by eclipsing $100 a share on Friday, which means this IT services company has now soared approximately 70% over the past 12 months. Earnings estimates have also been improving for this Zacks Rank #1 (Strong Buy) stock, especially since its fiscal second quarter report from early November. Now we are less than a month away from its next release on February 1.
DXC came together from the merger of Computer Sciences Corp. with the Enterprise Services Division of Hewlett Packard Enterprise. These days, it is the world's second largest end-to-end IT services company. But it's really just getting started. The merger opens up tons of possibilities for insurance, healthcare and financial services in spaces like transportation, pharma and technology, among others.
The company is on an epic streak of positive earnings surprises (see graph below). It has amassed an average beat of more than 25% in just the past four quarters. Most recently, it reported earnings per share of $1.93 for its fiscal second quarter, easily eclipsing the Zacks Consensus Estimate of $1.53 by more than 26%. Revenues of $6.163 billion was even more impressive as that skyrocketed by nearly 230% year over year, while still beating our expectations of $5.993 billion.
DXC raised its non-GAAP EPS outlook for fiscal 2018 to between $7.25 and $7.75, compared to the previous guidance of $6.50 to $7. Revenues are still expected at $24 billion to $24.5 billion. The Zacks Consensus Estimate for this fiscal year (ending March 2018) is at $7.51, which marks gains of 10% over the past 3 months and 4% in the past two. More importantly, earnings for next fiscal year (ending March 2019) are expected to soar from the previous year by more than 15% to $8.65 per share. This guidance is up 5.4% in 3 months and 2.6% in two.
DXC Technology Company. Price, Consensus and EPS Surprise
DXC Technology Company. Price, Consensus and EPS Surprise | DXC Technology Company. Quote
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
DXC Technology Company. (DXC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company (DE) hasn't missed quarterly earnings expectations in years and its stock has zoomed higher by approximately 54% in the past 12 months. The move catapults DE into an industry leader in global road construction and is expected to contribute around $3.1 billion in net sales in fiscal 2018. NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games.
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NVIDIA Corporation Price, Consensus and EPS Surprise NVIDIA Corporation Price, Consensus and EPS Surprise | NVIDIA Corporation Quote Deere & Company ( DE ) Take a look at that chart below. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote DXC Technology ( DXC ) DXC Technology (DXC) ended the first week of 2018 by eclipsing $100 a share on Friday, which means this IT services company has now soared approximately 70% over the past 12 months. (DXC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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NVIDIA Corporation Price, Consensus and EPS Surprise NVIDIA Corporation Price, Consensus and EPS Surprise | NVIDIA Corporation Quote Deere & Company ( DE ) Take a look at that chart below. Deere & Company (DE) hasn't missed quarterly earnings expectations in years and its stock has zoomed higher by approximately 54% in the past 12 months. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote DXC Technology ( DXC ) DXC Technology (DXC) ended the first week of 2018 by eclipsing $100 a share on Friday, which means this IT services company has now soared approximately 70% over the past 12 months.
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NVIDIA has always been a trailblazer, especially in developing high-performance graphics processing units (GPUs) for video games. As if that wasn't cool enough, the company has also become a leader in other intriguing fields like self-driving cars and artificial intelligence. NVIDIA Corporation Price, Consensus and EPS Surprise NVIDIA Corporation Price, Consensus and EPS Surprise | NVIDIA Corporation Quote Deere & Company ( DE ) Take a look at that chart below.
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722158.0
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2018-01-05 00:00:00 UTC
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Manufacturing Activity on a High: 4 Industrial Stocks to Buy
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DE
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https://www.nasdaq.com/articles/manufacturing-activity-on-a-high%3A-4-industrial-stocks-to-buy-2018-01-05
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The manufacturing sector which accounts for about 12% of the U.S. economy drew the curtains on 2017 with a strong performance, going by the data provided by the Institute for Supply Management ("ISM"). This upbeat performance was driven by a surge in new orders growth, signaling strong economic momentum.
Upbeat Manufacturing Data Instill Optimism
According to ISM, its index of national factory activity surged to a reading of 58.7 in December from 58.2 in November - the second highest reading in six years. The index had hit a peak of 60.8 in September. Notably, a reading above 50 indicates improved factory activity. The average PMI for 2017 was pegged at a promising 57.6. The December PMI indicates growth for the 103nd consecutive month in the overall economy. The sector is in the 16th consecutive month of expansion, with growth noted in 16 of the 18 manufacturing industries.
The New Orders Index, per the ISM, shot up 5.4 points to 69.4 - the highest reading since January 2004, when the index had recorded a 70.6 reading. Further, December marked the seventh consecutive month with a score above 60 - the highest expansion level witnessed in 14 years. The production index was at 65.8 in December, a 1.9 point expansion from November, the highest reading since May 2010.
On a broader note, per the latest data available, industrial production - a measure of the level of output of manufacturing, mining and utilities sectors in a country - increased 3.4% till November, above its year-ago level.
Construction Sector Shows Resilience
Per recent data released by the Commerce Department, total construction spending in the United States was at $1.26 trillion - an all-time high. Construction spending rose 0.8% in November on a sequential basis and 2.4% on a year-on-year basis. Spending on private residential projects improved 1% in November from October levels and also hit the highest level since February 2007. Residential construction improved 1% while non-residential construction went up 0.9%, both compared with October. Outlays on public construction projects rose 0.2% in November from October.
The construction sector has demonstrated stability through 2017 and witnessed sustainable growth amid various challenges. It goes without saying that President Donald Trump was the biggest factor. Investors were expecting faster growth based on Trump's assurance of significant tax cuts, higher infrastructure spending and lesser regulations.
The trend is anticipated to continue in 2018, owing to improving economy, modest wage growth, low unemployment levels, positive consumer confidence, a tight supply situation and escalating rent costs. Despite the repeated hikes of the Federal Reserve's interest rates, optimism surrounding the housing market remains largely unaffected.
U.S Economy on the Growth Path
The U.S. GDP expanded at 3.2% in the third quarter of 2017 - the fastest pace of growth in three years. Notably, it is the first time since 2014 that the U.S. economy has witnessed growth of 3% or more for two straight quarters. According to several recent forecasts, U.S economic growth in the fourth quarter is expected to be at or near the solid pace that's been reported in the prior two quarters.
Unemployment in the United States was at 4.1% in December - the lowest rate since February 2001. In December, the country created 148,000 jobs, the 87th consecutive month of job gains. Manufacturing added 25,000 jobs while construction created 30,000 jobs. Overall in 2017, the construction sector added 210,000 jobs, up from 155,000 in 2016. The manufacturing sector added 196,000 jobs during the year, a significant improvement over the 16,000 jobs lost in 2016. The upbeat manufacturing and construction reports as well as positive developments in the labor market and consumer spending are portraying robust picture for the U.S. economy.
What Awaits in 2018?
Lately, there has been a recovery in the mining sector driven by improvement in commodity prices. Miners are resuming capital investments which are translating to better order flows for mining machinery companies. The continuous advancements in technologies applied in agriculture and mining industries keep demand strong for farming and mining machinery. Construction machinery demand will remain strong in the years to come aided by population growth, urbanization, increased energy consumption and an expanding middle class. Further, increasing demand for global infrastructure, such as roads, housing, airports, and energy will help maintain growth.
We believe that implementation of Trump administration's growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will be a boon for industrial machinery stocks. Further, manufacturing is likely to get a boost this year from $1.5 trillion tax cut approved by the Republican-controlled U.S. Congress last month. The overhaul of the tax code, slashed the corporate income tax rate to 21% from 35%.
Sector Position, Performance
All the machinery industries are broadly clubbed under the industrial products sector. This sector has been outperforming the S&P 500 market in recent times. In the past year, the sector has gained around 25.1%, above the S&P 500's growth of 18.2%.
Notably, the Industrial Products sector put up a 19.6% growth in earnings in third-quarter 2017 and 22% growth in earnings is projected for fourth-quarter 2017. The sector is expected to deliver double-digit growth in all the quarters of 2018. Per our projections, the sector will log growth of 14% in first-quarter 2018, followed by 13.4%, 10% and 13.1% in the second, third and fourth quarters, respectively. (Read more: Q4 Earnings Season Gets Underway )
We note that the industrial products sector is currently enjoying a place in the top 50% of the 16 broad Zacks sectors. (To learn more visit: About Zacks Sector Rank ).
Consequently, investing in the industrial space makes perfect sense at this point. We have selected four industrial stocks which carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Our research shows that stocks with an impressive VGM Score of A or B when combined with a Zacks Rank 1 or 2, offer the best upside potential.
4 Machinery Stocks That Fit the Bill
Deere & CompanyDE manufactures and distributes agriculture and turf, along with construction and forestry equipment worldwide. The company has a Zacks Rank #1 and VGM Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
The long-term expected earnings growth rate for Deere is 8.0%. It has outpaced the Zacks Consensus Estimate in the trailing four quarters, generating a positive average earnings surprise of 19.5%.
The estimate for fiscal 2018 climbed 15% in the past 60 days and moved north by 21% for fiscal 2019. The Zacks Consensus Estimate for fiscal 2018 reflects growth of 18.86% while the estimate for fiscal 2019 reflects growth of 19.88%. The stock has gained 52% in the past year.
Caterpillar Inc.CAT , the world's largest construction and mining equipment manufacturer, has a Zacks Rank #2 and a VGM Score of B. The company has a long-term earnings growth rate of 10.33%. The earnings estimates for the company have gone up 1% for 2017 and 2% for 2018, in the past 60 days. The company also has an impressive earnings surprise history, beating the Zacks Consensus Estimate in the trailing four quarters. It delivered an average positive earnings surprise of 53.06%. The Zacks Consensus Estimate for fiscal 2018 reflects a growth of 20.73%. The stock has soared 71% in the past year.
Kennametal Inc.KMT , is a manufacturer, marketer and distributor of high-speed metal cutting tools, tooling systems and wear-resistant parts. The stock has a Zacks Rank #2 and VGM Score of B. The company has a long-term earnings growth rate of 8.33%. The earnings estimates for the company have gone up 2% for fiscal 2017 and 4% for fiscal 2019, in the past 60 days. The company also has an impressive earnings surprise history, beating the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 20.56%. The Zacks Consensus Estimate for fiscal 2018 reflects growth of 67.39% while the estimate for fiscal 2019 projects a growth of 14.32% Its shares have surged 55% in the past year.
Lakeland Industries, Inc.LAKE manufactures and sells safety garments and accessories for the industrial and public protective clothing market globally. The stock carries a Zacks Rank #2 and VGM Score of A.
The company has been seeing an upward trend in earnings estimate revision. In the past 30 days, the Zacks Consensus Estimate for fiscal 2018 earnings has increased 6% and for the next fiscal has gone up 2%. The Zacks Consensus Estimate for fiscal 2018 reflects growth of 66.98% and 1.69% for fiscal 2019. The company has an average earnings surprise of 20.64% in the trailing four quarters, beating estimates thrice. Its long-term projected EPS growth rate is 10%. The company's shares have gained 32% in the past year.
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Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lakeland Industries, Inc. (LAKE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The trend is anticipated to continue in 2018, owing to improving economy, modest wage growth, low unemployment levels, positive consumer confidence, a tight supply situation and escalating rent costs. Construction machinery demand will remain strong in the years to come aided by population growth, urbanization, increased energy consumption and an expanding middle class. The manufacturing sector which accounts for about 12% of the U.S. economy drew the curtains on 2017 with a strong performance, going by the data provided by the Institute for Supply Management ("ISM").
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The company also has an impressive earnings surprise history, beating the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 20.56%. Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lakeland Industries, Inc. (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here. The manufacturing sector which accounts for about 12% of the U.S. economy drew the curtains on 2017 with a strong performance, going by the data provided by the Institute for Supply Management ("ISM").
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Click to get this free report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lakeland Industries, Inc. (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here. The manufacturing sector which accounts for about 12% of the U.S. economy drew the curtains on 2017 with a strong performance, going by the data provided by the Institute for Supply Management ("ISM"). This upbeat performance was driven by a surge in new orders growth, signaling strong economic momentum.
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The production index was at 65.8 in December, a 1.9 point expansion from November, the highest reading since May 2010. The continuous advancements in technologies applied in agriculture and mining industries keep demand strong for farming and mining machinery. Sector Position, Performance All the machinery industries are broadly clubbed under the industrial products sector.
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8a6ccdde-7900-4fd5-b2d1-5b3749177c31
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722159.0
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2017-12-29 00:00:00 UTC
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Here's Why You Should Buy Komatsu (KMTUY) Stock Right Now
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https://www.nasdaq.com/articles/heres-why-you-should-buy-komatsu-kmtuy-stock-right-now-2017-12-29
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We find Komatsu Ltd.KMTUY a solid choice for investors seeking exposure in the machinery space. The construction and mining equipment manufacturer and supplier has strong growth prospects driven by solid product demand from China and Indonesia. Also, the company's raised projections and dividend rates for fiscal 2017 as well as synergistic benefits from acquired assets will work in its favor.
The stock, currently with approximately $34.5 billion market capitalization, has been upgraded to a Zacks Rank #1 (Strong Buy) on Dec 29. Its investment appeal is further accentuated by a favorable VGM Score of B.
Below we discuss why investors should consider buying Komatsu's stock.
Why the Upgrade?
Market sentiments have been positive for Komatsu with the stock yielding 26.7% return in the last three months compared with roughly 25.6% growth of the industry . We believe that the rally has been primarily supported by the company's upward revision of its projections for fiscal 2017 (ending Mar 31, 2018).
Komatsu seems positive about its growth prospects for fiscal 2017. It anticipates net sales to be approximately ¥2,328 billion, an increase of 9% from its previous forecast. On a segmental basis, the company increased its sales projection for the Construction, mining & utility equipment by 10.8% on the back of healthy demand in China and Indonesia, and for the Retail finance by 19.8%.
Likewise, Komatsu raised its operating income and net income guidance for fiscal 2017 by 38.5% and 72.8%, respectively. Earnings per share are projected to be ¥168.58 versus ¥97.56 expected earlier. The revision mainly incorporates the company's anticipation of solid demand for its construction and mining equipments across various nations.
Additionally, Komatsu's hike of its semi-annual dividend rate from ¥29 per share to ¥36 has worked in its favor. Now, the annual dividend rate is ¥72, above ¥58 in the previous fiscal year.
Also, acquisitions have been Komatsu's one of the most favored ways for expanding business. In this regard, the buyout of Joy Global Inc. (in April 2017) is worth mentioning. This acquired business has strengthened the company's equipment business for the mining industry.
The stock's earnings estimates for both fiscal 2017 and fiscal 2018 has been raised by one brokerage firm in the last 60 days. Currently, the Zacks Consensus Estimate is pegged at $1.58 for fiscal 2017 and $2.02 for fiscal 2018, representing growth of 14.5% and 8% from their respective tallies 60 days ago.
Komatsu Ltd. Price and Consensus
Komatsu Ltd. Price and Consensus | Komatsu Ltd. Quote
Other Stocks to Consider
Some other stocks worth considering in the machinery space are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar, Inc. CAT . While Deere & Company sports a Zacks Rank #1, both H&E Equipment and Caterpillar carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Also, earnings estimates for fiscal 2018 and fiscal 2019 improved in the past 60 days.
H&E Equipment Services pulled off an average positive earnings surprise of 34.66% in the last four quarters. Also, earnings estimates for 2017 remained stable while that for 2018 improved in the last 60 days.
Caterpillar's financial performance was impressive, with an average positive earnings surprise of 53.06% in the last four quarters. Also, earnings estimates for 2017 and 2018 were revised upward in the last 60 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Komatsu Ltd. (KMTUY): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The construction and mining equipment manufacturer and supplier has strong growth prospects driven by solid product demand from China and Indonesia. On a segmental basis, the company increased its sales projection for the Construction, mining & utility equipment by 10.8% on the back of healthy demand in China and Indonesia, and for the Retail finance by 19.8%. Also, the company's raised projections and dividend rates for fiscal 2017 as well as synergistic benefits from acquired assets will work in its favor.
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Komatsu Ltd. Price and Consensus Komatsu Ltd. Price and Consensus | Komatsu Ltd. Quote Other Stocks to Consider Some other stocks worth considering in the machinery space are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar, Inc. CAT . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The construction and mining equipment manufacturer and supplier has strong growth prospects driven by solid product demand from China and Indonesia.
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Komatsu Ltd. Price and Consensus Komatsu Ltd. Price and Consensus | Komatsu Ltd. Quote Other Stocks to Consider Some other stocks worth considering in the machinery space are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar, Inc. CAT . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The construction and mining equipment manufacturer and supplier has strong growth prospects driven by solid product demand from China and Indonesia.
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The stock, currently with approximately $34.5 billion market capitalization, has been upgraded to a Zacks Rank #1 (Strong Buy) on Dec 29. The construction and mining equipment manufacturer and supplier has strong growth prospects driven by solid product demand from China and Indonesia. Also, the company's raised projections and dividend rates for fiscal 2017 as well as synergistic benefits from acquired assets will work in its favor.
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708e01b0-4fe7-490a-9e91-d44c26012c07
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722160.0
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2017-12-29 00:00:00 UTC
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Lindsay (LNN) Secures Alex Fraser Bridge Contract Worth $14M
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https://www.nasdaq.com/articles/lindsay-lnn-secures-alex-fraser-bridge-contract-worth-%2414m-2017-12-29
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Lindsay CorporationLNN has secured a contract from the Province of British Columbia's Ministry of Transportation and Infrastructure, worth around $14 million. Per the contract, Lindsay will install its Road Zipper System on the Alex Fraser Bridge.
Located in Vancouver, British Columbia, the Alex Fraser Bridge is a cable-stayed bridge which connects Richmond and New Westminster with North Delta. It is one of the most congested bridges in Vancouver as more than 119,000 vehicles use it daily on an average.
The bridge is also very prone to accidents and a number of collisions have occurred in recent times. On Dec 17, a massive mishap occurred when five cars crashed on this bridge. Thus, the Government of British Columbia has decided to introduce a seventh lane to the bridge, in addition to a moveable barrier system.
Lindsay Corporation Price
Lindsay Corporation Price | Lindsay Corporation Quote
Notably, the deployment of Lindsay's Road Zipper System on the Alex Fraser Bridge will improve capacity and help reduce traffic congestion during peak periods. Its moveable barrier technology will replace an existing static concrete barrier, creating four lanes northbound and three lanes southbound during the morning rush hour. At all other times, there will be four lanes southbound and three lanes northbound.
Work under the contract is expected to begin in third-quarter fiscal 2018 and likely to close in first-quarter fiscal 2019. The contract will help drive growth in Lindsay's Infrastructure segment.
This irrigation equipment maker recorded order backlog of $80.3 million at the end of first-quarter fiscal 2018, up around 44% year over year, indicating an increase in backlog in both the Irrigation and Infrastructure segments. The company expects its backlog to grow, backed by the latest order for the Alex Fraser Bridge project.
However, Lindsay's shares have underperformed the industry in a year's time. The stock has gained around 17.5%, while the industry has recorded growth of 47.4% during the same time frame.
Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kubota carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 53%, year to date.
Caterpillar has a long-term earnings growth rate of 10.3%. So far this year, shares of the company have gained 70.8%.
Kubota has a long-term earnings growth rate of 10.7%. The company's shares are up 37.3% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Kubota Corp. (KUBTY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Thus, the Government of British Columbia has decided to introduce a seventh lane to the bridge, in addition to a moveable barrier system. The company expects its backlog to grow, backed by the latest order for the Alex Fraser Bridge project. Located in Vancouver, British Columbia, the Alex Fraser Bridge is a cable-stayed bridge which connects Richmond and New Westminster with North Delta.
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Lindsay Corporation Price Lindsay Corporation Price | Lindsay Corporation Quote Notably, the deployment of Lindsay's Road Zipper System on the Alex Fraser Bridge will improve capacity and help reduce traffic congestion during peak periods. Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Lindsay Corporation Price Lindsay Corporation Price | Lindsay Corporation Quote Notably, the deployment of Lindsay's Road Zipper System on the Alex Fraser Bridge will improve capacity and help reduce traffic congestion during peak periods. Zacks Rank & Stocks to Consider Lindsay currently carries a Zacks Rank #3 (Hold). Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
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However, Lindsay's shares have underperformed the industry in a year's time. Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . Located in Vancouver, British Columbia, the Alex Fraser Bridge is a cable-stayed bridge which connects Richmond and New Westminster with North Delta.
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5f6405b1-df3a-4ffd-acd9-f8766753a805
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722161.0
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2017-12-28 00:00:00 UTC
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Lindsay Rides on Irrigation Business, Commodity Prices Ail
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https://www.nasdaq.com/articles/lindsay-rides-on-irrigation-business-commodity-prices-ail-2017-12-28
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On Dec 27, we issued an updated research report on Lindsay CorporationLNN . The company is poised to gain from growth in the U.S. irrigation business and strong order backlog. Also, the recent tax reform is expected to have a beneficial impact. However, rising commodity prices and lower infrastructure spending are expected to affect results.
U.S. Irrigation Business to Drive Growth
As of November 2017, the U.S. Department of Agriculture (USDA) expects net farm income for fiscal 2017 to be $63.2 billion, up around 3% from the prior fiscal. This would be the first increase in net farm income, following three straight years of decline. Additionally, general economic optimism has also contributed to improved sentiment toward investment, particularly in high yield-enhancing equipment. On the back of these factors, Lindsay projects modest growth in the U.S. irrigation business in fiscal 2018.
Strong Backlog to Aid Results
Lindsay' order backlog at the end of first-quarter fiscal 2018 surged around 44% to $80.3 million from $55.9 million reported in the comparable quarter of the prior fiscal, reflecting increase in backlog in both Irrigation and Infrastructure segments. The company expects its backlog to be up, driven by the order for the Alex Fraser Bridge project. The value of this order is around $14 million, with delivery expected to begin in third-quarter fiscal 2018.
Tax Reform to Benefit
Notably, Lindsay is expected to gain from the recent tax reform. With the statutory rate declining to 21% from 35%, the company expects this to have a beneficial impact on its effective tax rate. For fiscal 2018, Lindsay will compute tax at the rate of 35% for four months and at 21% for the next eight months.
Higher Commodity Prices A Concern
Lindsay's irrigation revenues are highly dependent on the need for irrigated agricultural crop production, which, in turn, depends upon many factors, including commodity prices. As of November 2017, corn prices have flared up roughly 5%. Thus, further escalation in commodity prices will hinder margin performance.
Constrained Spending to Hit Infrastructure Segment
In the infrastructure segment, Lindsay continues to witness strong interest, domestically and internationally, in Road Zipper System projects, as well as elevated demand for its road safety products. However, constrained spending for surface transportation projects will impact the segment's performance.
Share Price Performance
Lindsay has underperformed its industry with respect to price performance in a year's time. The stock has gained around 15.4%, while the industry has recorded growth of 47.6% during the same time frame.
Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kubota carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 53.9%, year to date.
Caterpillar has a long-term earnings growth rate of 10.3%. So far this year, shares of the company have gained 69.9%.
Kubota has a long-term earnings growth rate of 10.7%. The company's shares have been up 36.1% during the same time frame.
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Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Kubota Corp. (KUBTY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Constrained Spending to Hit Infrastructure Segment In the infrastructure segment, Lindsay continues to witness strong interest, domestically and internationally, in Road Zipper System projects, as well as elevated demand for its road safety products. Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . On Dec 27, we issued an updated research report on Lindsay CorporationLNN .
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Some better-ranked stocks in the same industry are Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kubota carry a Zacks Rank #2 (Buy). Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Strong Backlog to Aid Results Lindsay' order backlog at the end of first-quarter fiscal 2018 surged around 44% to $80.3 million from $55.9 million reported in the comparable quarter of the prior fiscal, reflecting increase in backlog in both Irrigation and Infrastructure segments. Share Price Performance Lindsay has underperformed its industry with respect to price performance in a year's time. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Share Price Performance Lindsay has underperformed its industry with respect to price performance in a year's time. On Dec 27, we issued an updated research report on Lindsay CorporationLNN . The company is poised to gain from growth in the U.S. irrigation business and strong order backlog.
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aaa47f42-04ed-4860-8ec1-253939fd6adb
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722162.0
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2017-12-27 00:00:00 UTC
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Alamo's Investment Appeal Rises on Solid Growth Potential
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https://www.nasdaq.com/articles/alamos-investment-appeal-rises-on-solid-growth-potential-2017-12-27
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We find Alamo Group, Inc.ALG a solid choice for investors seeking exposure in the machinery space. The agriculture and infrastructure equipment manufacturer and supplier has solid growth prospects driven by improving domestic and global economic backdrop, initiatives undertaken for improvement of operational initiatives and synergistic benefits from acquired assets.
The stock, currently with $1.3 billion market capitalization, has been upgraded to a Zacks Rank #2 (Buy) on Dec 26. Its investment appeal is further accentuated by a favorable VGM Score of B.
Below we discuss why investors should consider buying Alamo Group's stock.
Why the Upgrade?
Market sentiments have been positive for Alamo Group, with the stock yielding 50.8% return year to date compared with 47.1% growth of the industry . Also, the company delivered better-than-expected results in two of the first three quarters of 2017 while recording in line results in one. In the last reported quarter, the company pulled off a positive earnings surprise of 12.90%. The stock price has increased 8.7% since the earnings announcement on Oct 31.
Also, the stock's earnings estimates for both 2017 and 2018 have been raised by two brokerage firms. Currently, the Zacks Consensus Estimate is pegged at $4.49 for 2017 and $5.05 for 2018, representing growth of 7.7% and 11.7% from their respective tallies 60 days ago.
Alamo Group, Inc. Price and Consensus
Alamo Group, Inc. Price and Consensus | Alamo Group, Inc. Quote
We believe that machinery stocks in the United States will gain traction from a strengthening domestic economy and healthy global growth backdrop. Continuous advancements in technologies applied in agriculture industry will keep demand strong for farming machineries while rise in demand for better infrastructure and residential and non-residential spaces will increase need for heavy construction machineries. In addition, the Trump government's promised growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will substantially improve growth prospects of machinery companies. Moreover, demand for U.S.-manufactured machineries remains high, with new orders increasing 7.1% in the first 10 months of 2017. Per the U.S. Census Bureau report, orders were solid for construction, mining, industrial, material handling and other machineries.
Further, Alamo's diversified product portfolio, its solid network of more than 6,000 dealers and distributors and huge customer base across various industries including government, agricultural, commercial turf, industrial and others will prove beneficial. Also, the company has prioritised initiatives like consolidation of manufacturing locations, focus on technologically advanced equipment to lower input costs and leveraging benefits from group purchasing initiatives to improve its operating efficiencies. Other initiatives undertaken include ensuring reduced lead times, improving assets usage and enhancing manufacturing efficiencies. Acquisitions have also been one of the ways for Alamo to expand its business scope. Year to date, the company has acquired Virginia-based Old Dominion Brush Company, Inc., Brazil-based Santa Izabel Agro Industria, Ltda. and Canada-based R.P.M. Tech Inc.
Other Stocks to Consider
Some other stocks worth considering in the machinery industry are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar, Inc. CAT . While Deere & Company sports a Zacks Rank #1 (Strong Buy), both H&E Equipment and Caterpillar carry a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Also, earnings estimates for fiscal 2018 and fiscal 2019 improved in the past 60 days.
H&E Equipment Services pulled off an average positive earnings surprise of 34.66% in the last four quarters. Also, earnings estimates for 2017 remained stable while that for 2018 improved in the last 60 days.
Caterpillar's financial performance was impressive, with an average positive earnings surprise of 53.06% in the last four quarters. Also, earnings estimates for 2017 and 2018 were revised upward in the last 60 days.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other initiatives undertaken include ensuring reduced lead times, improving assets usage and enhancing manufacturing efficiencies. The agriculture and infrastructure equipment manufacturer and supplier has solid growth prospects driven by improving domestic and global economic backdrop, initiatives undertaken for improvement of operational initiatives and synergistic benefits from acquired assets. The stock, currently with $1.3 billion market capitalization, has been upgraded to a Zacks Rank #2 (Buy) on Dec 26.
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The agriculture and infrastructure equipment manufacturer and supplier has solid growth prospects driven by improving domestic and global economic backdrop, initiatives undertaken for improvement of operational initiatives and synergistic benefits from acquired assets. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. The stock, currently with $1.3 billion market capitalization, has been upgraded to a Zacks Rank #2 (Buy) on Dec 26.
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Tech Inc. Other Stocks to Consider Some other stocks worth considering in the machinery industry are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar, Inc. CAT . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. The agriculture and infrastructure equipment manufacturer and supplier has solid growth prospects driven by improving domestic and global economic backdrop, initiatives undertaken for improvement of operational initiatives and synergistic benefits from acquired assets.
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Per the U.S. Census Bureau report, orders were solid for construction, mining, industrial, material handling and other machineries. The agriculture and infrastructure equipment manufacturer and supplier has solid growth prospects driven by improving domestic and global economic backdrop, initiatives undertaken for improvement of operational initiatives and synergistic benefits from acquired assets. The stock, currently with $1.3 billion market capitalization, has been upgraded to a Zacks Rank #2 (Buy) on Dec 26.
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7db37c8b-c927-4e22-9e88-c39a502633fd
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722163.0
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2017-12-27 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for December 28, 2017
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-december-28-2017-2017-12-27
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Deere & Company ( DE ) will begin trading ex-dividend on December 28, 2017. A cash dividend payment of $0.6 per share is scheduled to be paid on February 01, 2018. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 15th quarter that DE has paid the same dividend. At the current stock price of $158.75, the dividend yield is 1.51%.
The previous trading day's last sale of DE was $158.75, representing a -0.01% decrease from the 52 week high of $158.76 and a 54.46% increase over the 52 week low of $102.78.
DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and ASML Holding N.V. ( ASML ). DE's current earnings per share, an indicator of a company's profitability, is $6.64. Zacks Investment Research reports DE's forecasted earnings growth in 2018 as 18.86%, compared to an industry average of 21.3%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
iShares MSCI Agriculture Producers Fund ( VEGI )
iShares iBonds Mar 2018 Term Corporate ex-Financials ETF ( IBCC )
VanEck Vectors Agribusiness ETF ( MOO )
VanEck Vectors Natural Resources ETF ( HAP ).
The top-performing ETF of this group is MOO with an increase of 7.99% over the last 100 days. VEGI has the highest percent weighting of DE at 11.14%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DE's forecasted earnings growth in 2018 as 18.86%, compared to an industry average of 21.3%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) iShares iBonds Mar 2018 Term Corporate ex-Financials ETF ( IBCC ) VanEck Vectors Agribusiness ETF ( MOO ) VanEck Vectors Natural Resources ETF ( HAP ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on December 28, 2017.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) iShares iBonds Mar 2018 Term Corporate ex-Financials ETF ( IBCC ) VanEck Vectors Agribusiness ETF ( MOO ) VanEck Vectors Natural Resources ETF ( HAP ).
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A cash dividend payment of $0.6 per share is scheduled to be paid on February 01, 2018. DE's current earnings per share, an indicator of a company's profitability, is $6.64. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) iShares iBonds Mar 2018 Term Corporate ex-Financials ETF ( IBCC ) VanEck Vectors Agribusiness ETF ( MOO ) VanEck Vectors Natural Resources ETF ( HAP ).
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fc186804-7cc3-492a-9334-4b4b0b94fbd2
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722164.0
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2017-12-27 00:00:00 UTC
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Packaging Corporation's Buyouts Aid Growth Amid Rising Costs
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DE
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https://www.nasdaq.com/articles/packaging-corporations-buyouts-aid-growth-amid-rising-costs-2017-12-27
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nan
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nan
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On Dec 26, we issued an updated research report on Packaging Corporation of AmericaPKG . The company is poised to gain from the Sacramento Container acquisition, growth in e-commerce and progress in the DeRidder mill. However, higher annual outage costs are expected to affect results.
Sacramento Container Acquisition to Propel Growth
Earlier this October, Packaging Corporation acquired the assets of Sacramento Container. This buyout is likely to boost Packaging Corporation's operations both geographically and strategically. Further, the customer-focused employees and strong management teams of Sacramento Container, Northern Sheets and Central California Sheets are in sync with Packaging Corporation's growth strategy.
Growth in e-commerce to Boost Results
e-commerce is an important part of Packaging Corporation's business. The company anticipates increase in demand for boxes, which is generally driven by e-commerce growth. These days customers find a lot of different channels to sell through, including e-commerce. The company has a wide base of customers. Hence, it expects to grow along with them through its e-commerce segment.
Progress in DeRidder mill
Packaging Corporation's year-over-year production in 2017 has been benefiting from the projects of the DeRidder mill improvements on both DeRidder No. 1 and DeRidder No. 3. The company's other mills also continue to gain from continued attention on improving the mills' efficiencies. Thus, it estimates total production to be up probably 150,000 tons in 2017 over the prior year.
Higher Outage Costs to Hurt Earnings
Packaging Corporation reaffirmed total property damage and business interruption losses, including capital cost related to the DeRidder incident, in the range of $20-$25 million for 2017. Also, the company's planned annual maintenance outages for the balance of the year remain unchanged from the previous guidance.
It estimates outage costs to be 12 cents per share in the fourth quarter, higher than the third quarter, due to scheduled annual maintenance work at two containerboard mills and two paper mills. Considering these, Packaging Corporation projects fourth-quarter earnings of $1.50 per share.
Share Price Performance
Packaging Corporation has outperformed its industry with respect to price performance over the past year. The stock has gained around 41%, while the industry has recorded growth of 16.7% during the same time frame.
Zacks Rank & Stocks to Consider
Packaging Corporation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Deere & Company DE , Kennametal Inc. KMT and Sonoco Products Company SON . While Deere and Kennametal flaunt a Zacks Rank #1 (Strong Buy), Sonoco carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Deere has an expected long-term earnings growth rate of 8.2%. Year to date, its shares have rallied 54%.
Kennametal has an expected long-term earnings growth rate of 8.3%. Shares of the company have surged 55.2%, year to date.
Sonoco has an expected long-term earnings growth rate of 4.7%. The stock has gained 1% during the same time frame.
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Sonoco Products Company (SON): Free Stock Analysis Report
Packaging Corporation of America (PKG): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is poised to gain from the Sacramento Container acquisition, growth in e-commerce and progress in the DeRidder mill. On Dec 26, we issued an updated research report on Packaging Corporation of AmericaPKG . The company anticipates increase in demand for boxes, which is generally driven by e-commerce growth.
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Some better-ranked stocks in the same sector are Deere & Company DE , Kennametal Inc. KMT and Sonoco Products Company SON . While Deere and Kennametal flaunt a Zacks Rank #1 (Strong Buy), Sonoco carries a Zacks Rank #2 (Buy). Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Progress in DeRidder mill Packaging Corporation's year-over-year production in 2017 has been benefiting from the projects of the DeRidder mill improvements on both DeRidder No. Zacks Rank & Stocks to Consider Packaging Corporation currently carries a Zacks Rank #3 (Hold). Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company is poised to gain from the Sacramento Container acquisition, growth in e-commerce and progress in the DeRidder mill. Some better-ranked stocks in the same sector are Deere & Company DE , Kennametal Inc. KMT and Sonoco Products Company SON . On Dec 26, we issued an updated research report on Packaging Corporation of AmericaPKG .
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3c5aff4d-6c62-45fa-8853-c6a2f0ee4522
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722165.0
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2017-12-26 00:00:00 UTC
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Apogee (APOG) Misses on Q3 Earnings & Sales, Trims FY18 View
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DE
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https://www.nasdaq.com/articles/apogee-apog-misses-on-q3-earnings-sales-trims-fy18-view-2017-12-26
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nan
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Apogee Enterprises, Inc.APOG reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. Adjusted earnings of 90 cents per share, however, missed the Zacks Consensus Estimate of $1.04.
The company reported total revenues of around $357 million, surging 30% year over year. However, revenues lagged the Zacks Consensus Estimate of $376 million.
Operational Update
Cost of sales in the quarter flared up 32% year over year to $265 million. Gross profit improved 26% year over year to $91.6 million. Gross margin contracted 90 basis points (bps) to 25.7%. Selling, general and administrative (SG&A) expenses escalated 44% year over year to $57 million. Operating income grew 4% year over year to $34.5 million. Operating margin dipped 240 bps to 9.7%.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise | Apogee Enterprises, Inc. Quote
Segment Performance
Revenues at the Architectural Framing segment soared a whopping 114% year over year to $194 million, driven by recent acquisitions of Sotawall and EFCO. Excluding the acquisitions, revenues rose 17%. Further, revenue growth was backed by elevated sales in the company's legacy business. The segment's operating income in the quarter advanced 56% to $18.5 million from $11.8 million registered in the prior-year quarter.
The Architectural Glass Systems segment revenues declined 9% year over year to $97 million, due to delays caused by the Florida hurricane as well as lower volume of large projects. The segment's operating income descended 22% to $9.1 million from $11.7 million reported in the year-earlier quarter.
Revenues at the Architectural Services segment were down 24% year over year to $49 million. The segment reported an operating profit of $2.5 million, significantly down from $4.9 million recorded in the comparable quarter last fiscal.
The Large-Scale Optical Technologies segment's revenues went up 18% year over year to $26 million, driven by strong customer orders for holiday framing. Operating income in the reported quarter came in at $6.7 million, increasing 14% from $5.9 million recorded in the year-earlier period.
Backlog
In the Architectural Framing Systems segment, backlog increased to $448.8 million in the fiscal third quarter, up from $164 million reported in the prior-year period. This substantial backlog will likely support growth in the second half of fiscal 2019 and beyond. The Architectural Services' segment backlog came in at $346.3 million - a $150-million improvement from the year-ago quarter.
Financial Position
As of Dec 2, 2017, Apogee had cash and cash equivalents of $12.8 million compared with $51.6 million recorded as of Nov 26, 2016. The company generated $66 million in cash from operating activities during the nine-month period ending Dec 2, 2017, compared with $72.8 million recorded in the prior-year period. Long-term debt was $231.3 million as of Dec 2, 2017, compared with $65.4 million as of Mar 4, 2017.
Fiscal 2018 Outlook Trimmed
Apogee lowered its fiscal 2018 guidance due to lesser-than-expected volume and pricing, primarily in the architectural glass segment, and higher-than-expected health care costs. In addition, the trimmed outlook reflects charges that will result from restructuring activities in the fourth-quarter fiscal 2018.
Apogee also narrowed its revenue growth guidance to around 20% from the previous growth range of 24-26% for fiscal 2018. The company now expects its adjusted operating margin to lie between 8.6% and 8.9% compared to the prior view of 11-11.5%. It also trimmed its earnings per share guidance for the fiscal year to the range of $2.58-$2.68 from the previous band of $3.05-$3.25.
Fiscal 2019 View
For fiscal 2019, Apogee anticipates double-digit revenue growth and triple-digit basis-point improvement in operating margin. The company expects to incur around $4.5 million for restructuring projects, which is likely to yield roughly $4 million in annual savings in fiscal 2019 and beyond.
Moreover, the company is poised to gain on solid U.S. commercial construction markets, healthy backlog and a solid pipeline of projects, as well as encouraging external market metrics. Further, Apogee's focus on executing growth strategies and productivity initiatives will fortify its business. Its focus on cost-reduction actions will also stoke growth.
Share Price Performance
Apogee has underperformed the industry with respect to price performance over the past year. The stock has lost around 18.4%, while the industry recorded growth of 8.4% during the same time frame.
Zacks Rank & Stocks to Consider
Apogee currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Caterpillar Inc. CAT . While Deere and Kennametal sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 52.9%, year to date.
Kennametal has a long-term earnings growth rate of 8.3%. The company's shares have been up 55.4% during the same time frame.
Caterpillar has a long-term earnings growth rate of 10.3%. So far this year, shares of the company have gained 67.9%.
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Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the same sector include Deere & Company DE , Kennametal Inc. KMT and Caterpillar Inc. CAT . Apogee Enterprises, Inc.APOG reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. The Architectural Glass Systems segment revenues declined 9% year over year to $97 million, due to delays caused by the Florida hurricane as well as lower volume of large projects.
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Apogee Enterprises, Inc.APOG reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The Architectural Glass Systems segment revenues declined 9% year over year to $97 million, due to delays caused by the Florida hurricane as well as lower volume of large projects.
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The segment reported an operating profit of $2.5 million, significantly down from $4.9 million recorded in the comparable quarter last fiscal. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Apogee Enterprises, Inc.APOG reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter.
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The segment reported an operating profit of $2.5 million, significantly down from $4.9 million recorded in the comparable quarter last fiscal. Apogee Enterprises, Inc.APOG reported earnings per share of 82 cents in third-quarter fiscal 2018 (ended Dec 2, 2017), up 5% from 78 cents per share recorded in the prior-year quarter. The Architectural Glass Systems segment revenues declined 9% year over year to $97 million, due to delays caused by the Florida hurricane as well as lower volume of large projects.
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29d7fc57-8567-4e92-99b2-6e7c8666f9e5
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722166.0
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2017-12-22 00:00:00 UTC
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EUFN, COMT: Big ETF Inflows
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DE
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https://www.nasdaq.com/articles/eufn-comt-big-etf-inflows-2017-12-22
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares MSCI Europe Financials ETF ( EUFN ), which added 15,300,000 units, or a 20.6% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the iShares Commodities Select Strategy ETF ( COMT ), which added 2,100,000 units, for a 36.2% increase in outstanding units. Among the largest underlying components of COMT, in morning trading today Monsanto Company ( MON ) is up about 0.3%, and Deere & Company ( DE ) is lower by about 0.1%.
VIDEO: EUFN, COMT: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares MSCI Europe Financials ETF ( EUFN ), which added 15,300,000 units, or a 20.6% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the iShares Commodities Select Strategy ETF ( COMT ), which added 2,100,000 units, for a 36.2% increase in outstanding units. VIDEO: EUFN, COMT: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares MSCI Europe Financials ETF ( EUFN ), which added 15,300,000 units, or a 20.6% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the iShares Commodities Select Strategy ETF ( COMT ), which added 2,100,000 units, for a 36.2% increase in outstanding units. VIDEO: EUFN, COMT: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares MSCI Europe Financials ETF ( EUFN ), which added 15,300,000 units, or a 20.6% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the iShares Commodities Select Strategy ETF ( COMT ), which added 2,100,000 units, for a 36.2% increase in outstanding units. VIDEO: EUFN, COMT: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares MSCI Europe Financials ETF ( EUFN ), which added 15,300,000 units, or a 20.6% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the iShares Commodities Select Strategy ETF ( COMT ), which added 2,100,000 units, for a 36.2% increase in outstanding units. Among the largest underlying components of COMT, in morning trading today Monsanto Company ( MON ) is up about 0.3%, and Deere & Company ( DE ) is lower by about 0.1%.
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2b592485-8078-4fde-9843-244f216762f3
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722167.0
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2017-12-22 00:00:00 UTC
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Lindsay's (LNN) Q1 Earnings Miss, Revenues Beat Estimates
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DE
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https://www.nasdaq.com/articles/lindsays-lnn-q1-earnings-miss-revenues-beat-estimates-2017-12-22
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nan
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nan
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Lindsay CorporationLNN reported first-quarter fiscal 2018 (ended Nov 30, 2017) earnings of 30 cents per share, surging a whopping 275% from 8 cents per share recorded in the prior-year quarter. Earnings, however, missed the Zacks Consensus Estimate of 36 cents.
The irrigation equipment manufacturer reported revenues of $124.5 million, up 13% year over year. Revenues also beat the Zacks Consensus Estimate of $118 million.
Irrigation segment revenues climbed 15% year over year to $103.4 million. Domestic irrigation revenues recorded growth of 28% from the year-ago quarter, driven by an increase in irrigation system sales volume. However, International irrigation revenues decreased 4% due to lower project sales.
Lindsay Corporation Price and Consensus
Lindsay Corporation Price and Consensus | Lindsay Corporation Quote
Infrastructure segment revenues were up 3% year over year to $21.2 million led by increased sales volume in road safety products and higher Road Zipper System lease revenues, partly offset by lower revenues in other product lines.
Operational Update
Cost of operating revenues went up 12.3% year over year to $92 million. Gross profit improved 14% to $32.4 million from $28.4 million in the year-earlier quarter. Gross margin also expanded 30 basis points (bps) to 26%. Infrastructure margins improved due to a favorable product mix within road safety products and higher margin lease revenues.
Operating expenses flared up 2% year over year to $26.2 million in the reported quarter. The company posted an operating profit of $6.2 million, up significantly from $2.7 million recorded in the comparable period last year. Operating margin ascended 250 bps to 5% in the fiscal first quarter compared to the prior-year quarter.
Financial Position
Lindsay had cash and cash equivalents of $109.5 million at the end of the fiscal first quarter compared with $103.1 million recorded at the end of the comparable quarter last fiscal. The company recorded cash usage of $5 million from operating activities for the three-month period ended Nov 30, 2017, compared with positive cash flow of $8 million recorded in the prior-year period. Lindsay had long-term debt of $116.7 million during the reported quarter compared with $116.8 million recorded in the year-earlier period.
There were no share repurchases during the fiscal first quarter. As of Nov 30, 2017, shares worth around $63.7 million remained under the company's buyback program.
Lindsay's backlog as of Nov 30, 2017, was $80.3 million compared with $55.9 million as of Nov 30, 2016.
Outlook
Lindsay saw a significant year over year improvement in order flow and irrigation system sales in North America irrigation in the first quarter. The company noted that it will remain focused on providing innovative technology solutions and improving operating performance. However, volatile commodity prices remain a matter of concern.
Share Price Performance
In the past year, Lindsay has underperformed the industry it belongs to. The company's shares have gained around 17% compared with 44.4% growth recorded by the industry.
Zacks Rank & Key Picks
Lindsay currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . While Deere and Caterpillar sport a Zacks Rank #1 (Strong Buy), Kubota carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 51.3%, year to date.
Caterpillar has a long-term earnings growth rate of 10.3%. So far this year, shares of the company have gained 66.8%.
Kubota has a long-term earnings growth rate of 10.7%. The company's shares have been up 36.1% during the same time frame.
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Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Kubota Corp. (KUBTY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the same sector include Deere & Company DE , Caterpillar Inc. CAT and Kubota Corporation KUBTY . Lindsay CorporationLNN reported first-quarter fiscal 2018 (ended Nov 30, 2017) earnings of 30 cents per share, surging a whopping 275% from 8 cents per share recorded in the prior-year quarter. Domestic irrigation revenues recorded growth of 28% from the year-ago quarter, driven by an increase in irrigation system sales volume.
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The company recorded cash usage of $5 million from operating activities for the three-month period ended Nov 30, 2017, compared with positive cash flow of $8 million recorded in the prior-year period. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay CorporationLNN reported first-quarter fiscal 2018 (ended Nov 30, 2017) earnings of 30 cents per share, surging a whopping 275% from 8 cents per share recorded in the prior-year quarter.
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Financial Position Lindsay had cash and cash equivalents of $109.5 million at the end of the fiscal first quarter compared with $103.1 million recorded at the end of the comparable quarter last fiscal. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here. Lindsay CorporationLNN reported first-quarter fiscal 2018 (ended Nov 30, 2017) earnings of 30 cents per share, surging a whopping 275% from 8 cents per share recorded in the prior-year quarter.
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Lindsay had long-term debt of $116.7 million during the reported quarter compared with $116.8 million recorded in the year-earlier period. The company's shares have gained around 17% compared with 44.4% growth recorded by the industry. Lindsay CorporationLNN reported first-quarter fiscal 2018 (ended Nov 30, 2017) earnings of 30 cents per share, surging a whopping 275% from 8 cents per share recorded in the prior-year quarter.
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722168.0
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2017-12-22 00:00:00 UTC
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Why Deere & Company (DE) Stock Might be a Great Pick
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https://www.nasdaq.com/articles/why-deere-company-de-stock-might-be-a-great-pick-2017-12-22
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One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is because this security in the Manufacturing - Farm Equipment space is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Manufacturing - Farm Equipment space as it currently has a Zacks Industry Rank of 17 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Deere & Company is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
In fact, over the past month, current quarter estimates have risen from 87 cents per share to $1.09 per share, while current year estimates have risen from $7.04 per share to $7.94 per share. This has helped DE to earn a Zacks Rank #1(Strong Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 Rank stocks here .
So, if you are looking for a decent pick in a strong industry, consider Deere & Company. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This has helped DE to earn a Zacks Rank #1(Strong Buy), further underscoring the company's solid position. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE .
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote In fact, over the past month, current quarter estimates have risen from 87 cents per share to $1.09 per share, while current year estimates have risen from $7.04 per share to $7.94 per share. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board.
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote In fact, over the past month, current quarter estimates have risen from 87 cents per share to $1.09 per share, while current year estimates have risen from $7.04 per share to $7.94 per share. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board.
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One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. Meanwhile, Deere & Company is actually looking pretty good on its own too.
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722169.0
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2017-12-21 00:00:00 UTC
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Emerson to Buy Cooper-Atkins, Boosts Cold Chain Business
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https://www.nasdaq.com/articles/emerson-to-buy-cooper-atkins-boosts-cold-chain-business-2017-12-21
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Emerson Electric CompanyEMR has decided to acquire a leading technology company in foodservice markets, Cooper-Atkins. The buyout will serve to deepen Emerson's ability to cater to the needs of its cold chain customers, offering safe control of food as well as other temperature-sensitive products. Financial details of the deal have been kept under wraps. The transaction is anticipated to close within next couple of months after fulfilling regulatory conditions.
Cooper-Atkins' added expertise, when combined with Emerson's global cold chain business will expand latter's capabilities in monitoring food, its preparation, as well as high-value shipments all through the supply chain to preserve freshness and quality. Cooper-Atkins' strong portfolio of automated temperature and monitoring solutions will augment Emerson's ProAct Services portfolio for supermarkets and Cargo Solutions business.
The Acquiree
Headquartered in Middlefield, CT, Cooper-Atkins offers temperature management devices and wireless monitoring solutions for foodservice, industrial as well as healthcare markets. The company has offices with operations across Ohio, Florida and Singapore with about 150 employees. The company's solutions utilize mobile and cloud-based quality, safety as well as compliance systems to modernize food quality management.
Existing Business Scenario
Emerson has been executing restructuring activities since 2015 to drive efficiency and growth. The company has taken a series of concerted efforts to develop a better brand with significant customer focus. Moreover, all of its segments garnered significant savings from restructuring actions, consequently adding to strength. Notably, this Zacks Rank #3 (Hold) company has outperformed the industry in the past six months, having appreciated 17.6% compared with the industry 's gain of 7.2%.
The company is on a constant lookout for small bolt-on and strategic acquisitions to increase sales to up to $20 billion and cash flow back to over $3.2 billion over a span of next five years. Some of the notable acquisitions made by the company in recent times include Pentair Valves & Controls and a business unit of Pentair plc. This apart, the company expanded global capabilities in fresh food monitoring, with the acquisitions of Locus Traxx and PakSense. These buyouts are likely to enable the company widen the scope of cargo solutions.
Despite these positives, macroeconomic factors like sluggish economic conditions, recession and adverse conditions in the end markets are impeding growth. Further, prolonged softness in the oil and gas markets has affected both capital spending and operational expenditure of clients, consequently marring the company's prospects.
Stocks to Consider
Some better-ranked stocks from the same space include Deere & Company DE , Actuant Corporation ATU and Harsco Corporation HSC . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Actuant and Harsco carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company has outpaced estimates in the preceding four quarters, with an average earnings surprise of 19.5%.
Actuant has surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 0.8%.
Harsco has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 145.6%.
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Actuant Corporation (ATU): Free Stock Analysis Report
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Harsco Corporation (HSC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The buyout will serve to deepen Emerson's ability to cater to the needs of its cold chain customers, offering safe control of food as well as other temperature-sensitive products. The Acquiree Headquartered in Middlefield, CT, Cooper-Atkins offers temperature management devices and wireless monitoring solutions for foodservice, industrial as well as healthcare markets. Emerson Electric CompanyEMR has decided to acquire a leading technology company in foodservice markets, Cooper-Atkins.
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Stocks to Consider Some better-ranked stocks from the same space include Deere & Company DE , Actuant Corporation ATU and Harsco Corporation HSC . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Actuant and Harsco carry a Zacks Rank #2 (Buy). Click to get this free report Actuant Corporation (ATU): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Harsco Corporation (HSC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks from the same space include Deere & Company DE , Actuant Corporation ATU and Harsco Corporation HSC . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Actuant and Harsco carry a Zacks Rank #2 (Buy). Click to get this free report Actuant Corporation (ATU): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Harsco Corporation (HSC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Cooper-Atkins' added expertise, when combined with Emerson's global cold chain business will expand latter's capabilities in monitoring food, its preparation, as well as high-value shipments all through the supply chain to preserve freshness and quality. The Acquiree Headquartered in Middlefield, CT, Cooper-Atkins offers temperature management devices and wireless monitoring solutions for foodservice, industrial as well as healthcare markets. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises.
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722170.0
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2017-12-20 00:00:00 UTC
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Crown Holdings (CCK) Set to Buy Signode for $3.91 Billion
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https://www.nasdaq.com/articles/crown-holdings-cck-set-to-buy-signode-for-%243.91-billion-2017-12-20
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Consumer packaging company Crown Holdings, Inc.CCK has agreed to acquire Signode Industrial Group Holdings (Bermuda) Ltd. - a unit of The Carlyle Group L.P. CG - for $3.91 billion. This acquisition will strengthen Crown Holdings' metal packaging business and significantly boost its free cash flow as well.
Why Signode?
Based in Glenview, IL, Signode operates in 40 countries with sales to customers in approximately 60 countries. This $2.4-billion company has 88 manufacturing facilities across six continents. Signode generated pro forma sales and adjusted EBITDA of $2.3 billion and $384 million, respectively, for the twelve-months ended Nov, 30.
The company boasts a diversified product offering offerings including strap, stretch and protective packaging consumables. Signode's products secure and protect industrial and consumer goods during warehousing and shipment.
Benefits for Crown Holdings
The Signode acquisition will add a portfolio of premier transit and protective packaging franchises to Crown Holdings' metal packaging business. Post buyout, Crown Holdings will be able to supply full solutions to meet customers' transit packaging needs utilizing Signode's products. In addition, Signode's geographic and product mix will provide Crown Holdings a solid platform for value-creating growth. Moreover, the buyout will broaden and diversify Crown Holdings' customer base, facilitating growth in cash flow.
Crown Holdings, Inc. Price
Crown Holdings, Inc. Price | Crown Holdings, Inc. Quote
Other Details
The acquisition, which is subject to review by various competition authorities, is expected to close in the first quarter of 2018. Debt financing has been fully committed in support of the transaction.
Acquisitions Drive Crown Holdings' Growth
The aforementioned acquisition is in sync with Crown Holdings' strategy to evaluate select growth opportunities through capacity additions in its existing plants and new plants in existing markets. However, the Signode acquisition comes after nearly three years of the EMPAQUE buyout. The addition of EMPAQUE - a leading manufacturer for the beverage industry in Mexico - has significantly fortified Crown Holdings' presence in the Mexican market, along with substantially boosting its strategic position in the beverage cans segment, both regionally and globally.
Thus, Crown Holdings is aimed at making potential acquisitions in geographic areas and product lines in which it already operates or that complement its existing businesses. Furthermore, acquisitions are anticipated to fuel the company's growth.
Share Price Performance
Year to date, Crown Holdings has outperformed the industry with respect to price performance. While the stock has rallied 7.5%, the industry has recorded growth of 6.8% during the same time frame.
Zacks Rank & Stocks to Consider
Currently, Crown Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Caterpillar Inc. CAT and Deere & Company DE .
Caterpillar has a long-term expected earnings growth rate of 10.3%. Its shares have rallied 62.7% year to date. The company flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere, another Zacks Rank #1 stock, has a long-term expected earnings growth rate of 8.2%. The stock has appreciated 49.9% during the same time frame.
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Crown Holdings, Inc. (CCK): Free Stock Analysis Report
The Carlyle Group L.P. (CG): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Signode generated pro forma sales and adjusted EBITDA of $2.3 billion and $384 million, respectively, for the twelve-months ended Nov, 30. Post buyout, Crown Holdings will be able to supply full solutions to meet customers' transit packaging needs utilizing Signode's products. Consumer packaging company Crown Holdings, Inc.CCK has agreed to acquire Signode Industrial Group Holdings (Bermuda) Ltd. - a unit of The Carlyle Group L.P. CG - for $3.91 billion.
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Crown Holdings, Inc. Price Crown Holdings, Inc. Price | Crown Holdings, Inc. Quote Other Details The acquisition, which is subject to review by various competition authorities, is expected to close in the first quarter of 2018. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report The Carlyle Group L.P. (CG): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Consumer packaging company Crown Holdings, Inc.CCK has agreed to acquire Signode Industrial Group Holdings (Bermuda) Ltd. - a unit of The Carlyle Group L.P. CG - for $3.91 billion.
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Crown Holdings, Inc. Price Crown Holdings, Inc. Price | Crown Holdings, Inc. Quote Other Details The acquisition, which is subject to review by various competition authorities, is expected to close in the first quarter of 2018. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report The Carlyle Group L.P. (CG): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Consumer packaging company Crown Holdings, Inc.CCK has agreed to acquire Signode Industrial Group Holdings (Bermuda) Ltd. - a unit of The Carlyle Group L.P. CG - for $3.91 billion.
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Why Signode? However, the Signode acquisition comes after nearly three years of the EMPAQUE buyout. Deere, another Zacks Rank #1 stock, has a long-term expected earnings growth rate of 8.2%.
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2017-12-20 00:00:00 UTC
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Best Stocks for 2018: Mosaic Co Has a Major Tailwind in Agriculture
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https://www.nasdaq.com/articles/best-stocks-2018-mosaic-co-has-major-tailwind-agriculture-2017-12-20
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor's note: This column is part of our Best Stocks for 2018 contest. Charles Payne's pick for the contest is Mosaic Co (NYSE: MOS ).
I enjoyed taking part in the Best Stocks for 2016 contest two years ago, and I'm thrilled to be back joining the game this year.
It's no secret that the market has had a great year. Volatility has been low, the economy has been growing and the indices have been hitting new highs on a regular basis. It's been an incredible run, but I don't think the strength will come to an end at the New Year's bell. In fact, I think stocks will keep on running.
Still, we've seen a lot of rotation recently, and I don't want my pick in this year's contest to get caught up in any of that. That's why I'm setting my sights on an industry that appears to be making a comeback.
Mosaic Co (NYSE: MOS ) is the world's leading producer of concentrated phosphate and potash. In simpler words, it is a crop nutrition company whose goal is to help the world's increasing population grow the food it needs. In fact, MOS is recognized as an innovator in its field.
Bringing Back the Farms
When we think of agriculture and farming, many remember the horror stories of foreclosures that brought on a slew of Hollywood movies and Willie Nelson's Farm Aid concerts. There's no doubt that farming has become unpopular and increasingly more difficult for small operators, but that doesn't mean it won't always play an integral role in our economy and politics.
10 Can't-Miss Dividend Growth Stocks for 2018
Think of it this way. We still eat. We still wear clothes, smoke and fish. And we also still love sending and receiving flowers. This industry isn't going anywhere, and it may even be making a comeback. Deere & Company's (NYSE: DE ) latest financial release on November 24 revealed great strength in agriculture, suggesting that a big turn in the fortunes of the farm economy has begun. Since peaking back in 2014, it looks like 2018 may be a turnaround year.
Back in 2015, farms added $137 billion to U.S. GDP while agriculture as a whole added $992 billion. While pricing has remained mostly sideways since then, farm equity and wealth have edged higher and debt is at manageable levels.
I suspect a lot of this is driven by demand for farm-to-table and organic groceries, and that trend should continue to drive pricing power in 2018. The world's population is only growing and America continues to take on a larger percentage to feed. In fact, Chinese demand for soybeans resulted in $40.4 billion in sales in 2017.
With the global economy on fire, that means higher demand for protein and the nutrients needed in the agriculture space. And Mosaic is a standout here. While the shares have tumbled 56% over the last five years, they have made an impressive 27% rebound since September and are now nearing a point where they could break out from their long-term down channel.
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There is some resistance at $30, but a breakout fueled by improving underlying fundamentals could carry this stock to $45 and beyond. I see it not only as a winner in its space, but as an overall star in 2018.
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The post Best Stocks for 2018: Mosaic Co Has a Major Tailwind in Agriculture appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company's (NYSE: DE ) latest financial release on November 24 revealed great strength in agriculture, suggesting that a big turn in the fortunes of the farm economy has begun. While the shares have tumbled 56% over the last five years, they have made an impressive 27% rebound since September and are now nearing a point where they could break out from their long-term down channel. Curious what Wall Street insider Charles Payne really thinks?Get more behind-the-scenes insights, valuable market research and hands-on guidance including live stock recommendations.
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10 Can't-Miss Dividend Growth Stocks for 2018 Think of it this way. Deere & Company's (NYSE: DE ) latest financial release on November 24 revealed great strength in agriculture, suggesting that a big turn in the fortunes of the farm economy has begun. Back in 2015, farms added $137 billion to U.S. GDP while agriculture as a whole added $992 billion.
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More From InvestorPlace 9 Best Dividend Stocks to Buy for Every Investor Best Stocks for 2018: Nvidia Corporation Stock Will Crush Everything The 10 Best ETFs to Buy for Yield-Starved Investors Compare Brokers The post Best Stocks for 2018: Mosaic Co Has a Major Tailwind in Agriculture appeared first on InvestorPlace . 10 Can't-Miss Dividend Growth Stocks for 2018 Think of it this way. Deere & Company's (NYSE: DE ) latest financial release on November 24 revealed great strength in agriculture, suggesting that a big turn in the fortunes of the farm economy has begun.
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10 Can't-Miss Dividend Growth Stocks for 2018 Think of it this way. Deere & Company's (NYSE: DE ) latest financial release on November 24 revealed great strength in agriculture, suggesting that a big turn in the fortunes of the farm economy has begun. Back in 2015, farms added $137 billion to U.S. GDP while agriculture as a whole added $992 billion.
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2017-12-19 00:00:00 UTC
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Caterpillar (CAT) Rides on Strong End Markets & Cost Control
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https://www.nasdaq.com/articles/caterpillar-cat-rides-on-strong-end-markets-cost-control-2017-12-19
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On Dec 18, we issued an updated research report on the mining and equipment behemoth, Caterpillar Inc.CAT . The mining and equipment behemoth has delivered a turnaround performance this year owing to its relentless cost saving actions. The improvement also continues to be driven by the Asia-Pacific region and the construction sector. Notably, the Resource Industries has also picked up lately.
Caterpillar delivered another upbeat quarter with adjusted earnings per share surging 129% in the third quarter while revenues improved 24.6%, further building on the momentum noted in the first half of 2017. The better-than-expected performance can be attributed to surprisingly strong demand for construction equipment in North America, robust sales in China, improvement in other markets as well as disciplined cost-control efforts. Moreover, Caterpillar's backlog was at $15.8 billion at the end of quarter, a year-over year improvement of $3.8 billion.
The company reported a rise of 26% in global retail sales for the three months ended November 2017, with improvement noted across all regions - its best performance so far in 2017. Within Machines, Resource Industries and Construction Industries reported positive gains for the fifth and tenth consecutive month, respectively, and scaled peak levels for 2017. Energy & Transportation's retail sales improved for the third consecutive month. The company's overall retail sales growth graph has remained in the positive territory since March this year. The company witnessed a 1% rise in machine retail sales in March, which put an end to its unprecedented 51-month long stretch of declining sales. The company has delivered an average sales growth of 11% since March.
Given the performance so far, the company has outperformed the industry on a year-to-date basis. Shares have surged 61.5% while the industry registered growth of 59.8%. The stock has an estimated long-term earnings growth rate of 10.33%.
Caterpillar to Finish 2017 on a Strong Note
Owing to encouraging order rates, upbeat economic indicators and an increasing backlog, Caterpillar hiked revenue guidance during third-quarter conference call to the range of $44 billion from the prior range of $42-$44 billion. The company now projects earnings per share of $6.25 compared with previous guidance of $5.00 per share. The mid-point of the revenues and earnings guidance reflects year-over-year growth of 14% and 83%, respectively.
The Zacks Consensus Estimate for 2017 for revenues is at $44.52 billion and for earnings at $6.44, both ahead of the company's guidance. Estimates for Caterpillar have moved up in the past 30 days, reflecting the optimistic outlook of analysts. The earnings estimate for fiscal 2017 has gone up 22% while that of fiscal 2018 has moved north 15%.
Will the Momentum Sustain in 2018?
Caterpillar's share price has benefited since the victory of Donald Trump as investors expect Trump's plans of big spending in infrastructure to boost revenues which had until that point borne the brunt of weak mining demand. The prospect of gigantic infrastructure spending is welcome news for Caterpillar which is anticipated to play a major role in the national infrastructure plan.
Meanwhile, the Construction Industries segment is benefiting from strong order activity across all regions and favorable price realization. End-user demand remains robust in North America, driven by an uptick in pipeline construction and improved residential and non-residential construction. In China, the construction industry is improving due to government spending. In 2017, the 10-ton-and-above excavator industry in China is projected to more than double from last year. Not only China, but also other regions in the Asia Pacific are anticipated to show improvement in construction activity going forward. In Resource Industries, sales are being driven by continued strong demand for aftermarket parts, favorable changes to dealer inventories, and positive pricing.
In September 2015, Caterpillar set upon significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would aid to lower its annual operating costs by about $1.5 billion. This is likely to stem from the consolidation or closure of more than 30 facilities that would decrease manufacturing square footage by more than 10% and reduce the workforce by more than 10,000 people. In addition to restructuring activities, Caterpillar continues to focus on customers and on the future by continuing to invest in digital capabilities, connecting assets and jobsites along with developing the next generation of more productive and efficient products.
Caterpillar currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked companies in the industrial product space include Deere & Company DE , H&E Equipment Services, Inc. HEES and Terex Corporation TEX . All these stocks flaunt the same Zacks rank as Caterpillar. You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company has an expected long-term growth of 8.2%. Its shares have surged 49.5%, year to date.
H&E Equipment Services has expected long-term growth of 15.55%. It shares have gone rallied 70.9%, year to date.
Terex has expected long-term growth of 11.25%. Since the beginning of the year, its shares have gone up 49.8%.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The better-than-expected performance can be attributed to surprisingly strong demand for construction equipment in North America, robust sales in China, improvement in other markets as well as disciplined cost-control efforts. The company reported a rise of 26% in global retail sales for the three months ended November 2017, with improvement noted across all regions - its best performance so far in 2017. In Resource Industries, sales are being driven by continued strong demand for aftermarket parts, favorable changes to dealer inventories, and positive pricing.
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The better-than-expected performance can be attributed to surprisingly strong demand for construction equipment in North America, robust sales in China, improvement in other markets as well as disciplined cost-control efforts. Other top-ranked companies in the industrial product space include Deere & Company DE , H&E Equipment Services, Inc. HEES and Terex Corporation TEX . Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Caterpillar delivered another upbeat quarter with adjusted earnings per share surging 129% in the third quarter while revenues improved 24.6%, further building on the momentum noted in the first half of 2017. Caterpillar to Finish 2017 on a Strong Note Owing to encouraging order rates, upbeat economic indicators and an increasing backlog, Caterpillar hiked revenue guidance during third-quarter conference call to the range of $44 billion from the prior range of $42-$44 billion. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Caterpillar delivered another upbeat quarter with adjusted earnings per share surging 129% in the third quarter while revenues improved 24.6%, further building on the momentum noted in the first half of 2017. The company reported a rise of 26% in global retail sales for the three months ended November 2017, with improvement noted across all regions - its best performance so far in 2017. On Dec 18, we issued an updated research report on the mining and equipment behemoth, Caterpillar Inc.CAT .
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e082ca73-6ce6-4ceb-81b6-3671e2d562a8
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722173.0
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2017-12-18 00:00:00 UTC
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Here???s Why You Should Add Deere (DE) to Your Portfolio Now
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DE
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https://www.nasdaq.com/articles/heres-why-you-should-add-deere-de-to-your-portfolio-now-2017-12-18
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nan
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nan
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Shares of Deere & Company (DE) have rallied around 46.4% year to date. We believe this is the right time to add the stock as the company has solid prospects and is poised to maintain its bullish momentum.
Let's delve deeper into the factors that make this agricultural equipment maker an attractive investment option.
What Makes Deere an Attractive Pick?
Solid Rank & VGM Score: Deere currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Above the Industry: Deere has outperformed the industry it belongs to over the past year. The company's shares have jumped 47.6% compared with roughly 42.5% growth recorded by the industry during the same time frame.
Positive Earnings Surprise History: Deere has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive earnings surprise of 19.52%.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
Estimates Northbound: Estimates for Deere have moved up in the past 30 days, reflecting analysts' confidence in the stock. The Zacks Consensus Estimate has climbed nearly 14% to $7.94 and 20% to $9.52 for fiscal 2018 and 2019, respectively, during this period.
Superior Return on Equity (ROE): Deere's ROE of 26.3%, as compared with the industry average of 23.9%, highlights the company's efficiency in utilizing shareholders' funds.
Attractive Valuation: Going by the price earnings (P/E) multiple, Deere is currently trading at a trailing 12-month P/E multiple of 22.7x - lower than the industry average of 26.1x.
Growth Drivers in Place: Deere recently posted strong fourth-quarter fiscal 2017 results and provided an upbeat outlook for fiscal 2018. The company's earnings in the reported quarter surged around 74% year over year. Also, net sales of equipment operations climbed 26% from the prior-year period.
For fiscal 2018, Deere estimates total equipment sales to be up about 22% and net sales to rise around 19% from fiscal 2017. Segment wise, Agriculture and Turf is projected to witness 9% increase in sales. Sales for the Construction & Forestry segment are projected to soar roughly 69%.
Notably, Deere's recent acquisition of Germany-based Wirtgen - the world's leading road-construction equipment maker - also remains a tailwind. The buyout will help Deere expand its North America-centric construction business and make it an industry leader in road construction. The acquisition is anticipated to boost earnings immediately.
We remain optimistic about Deere's solid order activity, improving conditions in the dairy and livestock sectors, as well as its encouraging harvest outlook. Additionally, higher housing starts in the United States and an improving oil and gas sector are expected to fuel the company's growth.
Other Stocks to Consider
Some other similarly-ranked stocks in the sector include Atlas Copco AB ATLKY , Caterpillar Inc. CAT and Chart Industries, Inc. GTLS . You can see the complete list of today's Zacks #1 Rank stocks here .
Atlas Copco has a long-term earnings growth rate of 12.5%. Its shares have rallied 36.1%, year to date.
Caterpillar has a long-term earnings growth rate of 10.3%. The stock has appreciated 58.2% in the year so far.
Chart Industries has a long-term earnings growth rate of 20%. So far this year, the stock has gained 26.2%.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Atlas Copco AB (ATLKY): Free Stock Analysis Report
Chart Industries, Inc. (GTLS): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We remain optimistic about Deere's solid order activity, improving conditions in the dairy and livestock sectors, as well as its encouraging harvest outlook. Shares of Deere & Company (DE) have rallied around 46.4% year to date. Let's delve deeper into the factors that make this agricultural equipment maker an attractive investment option.
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Estimates Northbound: Estimates for Deere have moved up in the past 30 days, reflecting analysts' confidence in the stock. Other Stocks to Consider Some other similarly-ranked stocks in the sector include Atlas Copco AB ATLKY , Caterpillar Inc. CAT and Chart Industries, Inc. GTLS . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Atlas Copco AB (ATLKY): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Estimates Northbound: Estimates for Deere have moved up in the past 30 days, reflecting analysts' confidence in the stock. For fiscal 2018, Deere estimates total equipment sales to be up about 22% and net sales to rise around 19% from fiscal 2017. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Atlas Copco AB (ATLKY): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company's shares have jumped 47.6% compared with roughly 42.5% growth recorded by the industry during the same time frame. Shares of Deere & Company (DE) have rallied around 46.4% year to date. Let's delve deeper into the factors that make this agricultural equipment maker an attractive investment option.
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cbeae391-ac54-4f2e-8cc1-743588f4e774
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722174.0
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2017-12-18 00:00:00 UTC
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Greif Up 12% Post Q4 Earnings: Will the Trend Continue?
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DE
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https://www.nasdaq.com/articles/greif-up-12-post-q4-earnings%3A-will-the-trend-continue-2017-12-18
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nan
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nan
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Following Greif Inc. 's GEF fourth-quarter fiscal 2017 results, the stock has been gaining ground. Further, anticipated benefits from its transformation initiative as well as expected growth in segments are fueling the share price.
Shares of the company have surged 12% since it reported quarterly numbers on Dec 6, ahead of the industry 's paltry growth of 0.2%. In the last six months, the stock has rallied 10.2%, outperforming the industry's gain of 6.0%.
If you haven't taken advantage of the share price appreciation yet, its time you hold the stock in your portfolio as it looks promising and is poised to carry the momentum ahead. This Zacks Rank #3 (Hold) stock has an estimated long-term earnings growth rate of 8.67%, which highlight Greif's inherent prospects.
Additionally, the stock has a VGM score of A. Here V stands for Value, G for Growth and M for Momentum. The company's score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Valuation
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 20.8x, lower than the industry's average of 21.9x. The ratio, which is obtained by dividing a stock's current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Consequently, the lower the P/E of a stock, the better it is for a value investor.
Growth Drivers
Greif projects adjusted earnings per share for fiscal 2018 in the range of $3.25-$3.55. At the mid-point, the guidance represents a 15% improvement over fiscal 2017 performance. The company is likely to benefit in fiscal 2018 from transformation initiative. While the three-year transformation may have officially concluded in fiscal 2017, optimization activities identified during the initiative will continue into 2018.
The company's Rigid Industrial Packaging & Services segment's fourth-quarter sales were $60 million higher year over year on the back of selling prices stemming from index price increases and strategic pricing decisions. The company anticipates the segment's gross margin to improve sequentially in first-quarter 2018 as the impact of the price adjustment mechanisms is realized.
In fiscal 2018, Greif's Paper Packaging segment will benefit from realized containerboard price increases implemented over the course of fiscal 2017 and higher anticipated specialty sales. The company assumes that the blended old corrugated containers ("OCC") cost for the entire year will be $152 a ton. Given the current assumptions, it expects the segment's operating profit before special items to rise by $20 million in fiscal 2018 compared with fiscal 2017's results.
In fiscal 2018, Greif's Flexible Products & Services segment will achieve greater benefits from third-party manufacturing initiatives and a more optimized SG&A footprint. This business remains on track toward achieving its run rate commitment in the range of $20-$30 million of operating profit before special items exiting 2020.
Estimate for the current quarter for Greif have moved up 8% in the past 30 days. The Zacks Consensus estimate for the fiscal first quarter 2018 is currently pegged at 68 cents, reflecting a 51% year-over-year growth. The Zacks Consensus Estimate for fiscal 2018 is at $3.41, which reflects a year-over-year growth of 15.7%. For fiscal 2019, the estimate is $3.78, a year-over-year climb of 10.90%.
Stocks to Consider
Some better-ranked stocks worth considering in the same sector include Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar delivered an average positive earnings surprise of 53.06% in the trailing four quarters. The stock has gained 58.21%, year to date.
Deere pulled off an average earnings surprise of 19.5% in the last four quarters. The stock has surged 46.4%, year to date.
Terex delivered an average earnings surprise of 135.9% in the last four quarters. The stock has surged 45.7%, year to date.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Greif Bros. Corporation (GEF): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the company have surged 12% since it reported quarterly numbers on Dec 6, ahead of the industry 's paltry growth of 0.2%. The company currently trades at a forward P/E multiple of 20.8x, lower than the industry's average of 21.9x. While the three-year transformation may have officially concluded in fiscal 2017, optimization activities identified during the initiative will continue into 2018.
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The company's Rigid Industrial Packaging & Services segment's fourth-quarter sales were $60 million higher year over year on the back of selling prices stemming from index price increases and strategic pricing decisions. Stocks to Consider Some better-ranked stocks worth considering in the same sector include Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . Corporation (GEF): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks worth considering in the same sector include Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . Corporation (GEF): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the company have surged 12% since it reported quarterly numbers on Dec 6, ahead of the industry 's paltry growth of 0.2%.
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Shares of the company have surged 12% since it reported quarterly numbers on Dec 6, ahead of the industry 's paltry growth of 0.2%. The company currently trades at a forward P/E multiple of 20.8x, lower than the industry's average of 21.9x. While the three-year transformation may have officially concluded in fiscal 2017, optimization activities identified during the initiative will continue into 2018.
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647d9167-ce5a-49a9-8c4d-ab292f392fd8
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722175.0
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2017-12-18 00:00:00 UTC
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Parker-Hannifin (PH) Launches QAN SIL2/PLd Controllers
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DE
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https://www.nasdaq.com/articles/parker-hannifin-ph-launches-qan-sil2-pld-controllers-2017-12-18
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nan
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nan
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Parker-Hannifin Corporation 's PH Electronic Controls Business Unit recently unveiled new functional safety controllers for mobile machinery applications. The latest RISE ("SP") certified IQAN-MC4xFS controllers offer cost-efficient means of meeting the safety standards needed for heavy mobile machinery, along with providing robustness and straightforward system integration.
Certified to IEC 61508 SIL2, the IQAN-MC4xFS is designed to control hydraulic valves, making it a best choice for mobile machinery applications. Having being built on Parker's earlier MC4x versions, the latest IQAN-MC4xFS is suitable for use in applications with full pin compatibility, which incorporates a considerable amount of monitoring functionality to address application needs.
Apart from extensive start-up tests, extended diagnostics measures were also introduced, like run-time diagnostics of dangerous faults. Other features like implementation of safety-related applications in the lockstep core, ECC-protected Flash and RAM, as well as the execution of a safety-certified Real-Time Operating System were also included.
Based on similar hardware as IQAN-MC4x performance-optimized standard versions, the latest controllers offer accurate and real-time control of hydraulic systems. The IQAN-MC4xFS controllers enable faster development of new machine functionality, aided by full compatibility powered by the established IQANdesign platform. The IQANdesign platform offers an inbuilt tool for programming, testing, production, simulation as well as service and maintenance.
Our Take
Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken in the past few quarters. Apart from this, the company is streamlining business and corporate functions as well as removing complex bureaucracy from organizational structure to create a "leaner" frame. The company has also devised a complimentary business realignment action, which when combined with the simplification initiative, is likely to strengthen the manufacturing footprint, going forward.
Buoyed by the competency of the revamped Win Strategy and strategic acquisitions, the company is bullish about delivering fundamental financial goals. Investors also seem to be optimistic on the company's future prospects, as the Zacks Rank #2 (Buy) stock yielded a return of 36% in the past year, outperforming the industry 's average growth of 25.5%.
Moreover, the company has been proactive in making acquisitions from time to time to strengthen its core business. The company has concluded major investments recently. For instance, the CLARCOR buyout has strengthened the company's filtration product suite, consequently driving recurring revenue growth. Also, other bolt-on acquisitions including Arnold Jäger Holding GmbH's operating units, President Engineering Group Limited and Helac Corporation are anticipated to supplement top-line growth, going forward.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Deere & Company DE , Acco Brands Corporation ACCO and Donaldson Company, Inc. DCI . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Acco Brands and Donaldson Company carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 19.5%.
Acco Brands has outpaced estimates in the preceding four quarters, with an average earnings surprise of 81.9%.
Donaldson Company has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 5.2%.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Acco Brands Corporation (ACCO): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest RISE ("SP") certified IQAN-MC4xFS controllers offer cost-efficient means of meeting the safety standards needed for heavy mobile machinery, along with providing robustness and straightforward system integration. Investors also seem to be optimistic on the company's future prospects, as the Zacks Rank #2 (Buy) stock yielded a return of 36% in the past year, outperforming the industry 's average growth of 25.5%. Also, other bolt-on acquisitions including Arnold Jäger Holding GmbH's operating units, President Engineering Group Limited and Helac Corporation are anticipated to supplement top-line growth, going forward.
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Other Stocks to Consider Some other top-ranked stocks from the same space include Deere & Company DE , Acco Brands Corporation ACCO and Donaldson Company, Inc. DCI . Click to get this free report Deere & Company (DE): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. The latest RISE ("SP") certified IQAN-MC4xFS controllers offer cost-efficient means of meeting the safety standards needed for heavy mobile machinery, along with providing robustness and straightforward system integration.
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Other Stocks to Consider Some other top-ranked stocks from the same space include Deere & Company DE , Acco Brands Corporation ACCO and Donaldson Company, Inc. DCI . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Acco Brands and Donaldson Company carry a Zacks Rank #2. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks to Consider Some other top-ranked stocks from the same space include Deere & Company DE , Acco Brands Corporation ACCO and Donaldson Company, Inc. DCI . The latest RISE ("SP") certified IQAN-MC4xFS controllers offer cost-efficient means of meeting the safety standards needed for heavy mobile machinery, along with providing robustness and straightforward system integration. Certified to IEC 61508 SIL2, the IQAN-MC4xFS is designed to control hydraulic valves, making it a best choice for mobile machinery applications.
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949fecc9-1745-4743-9cd0-e8ac243486d3
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722176.0
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2017-12-14 00:00:00 UTC
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Greif (GEF) Poised to Benefit From Transformation Initiative
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DE
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https://www.nasdaq.com/articles/greif-gef-poised-to-benefit-from-transformation-initiative-2017-12-14
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nan
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nan
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On Dec 13, we issued an updated research report on Greif, Inc.GEF . The company is likely to benefit from its transformation initiative. In addition, its segments will gain from higher specialty sales and strategic pricing decisions. However, the company's results are expected to be marred by elevated professional fees and charges of pending tax reform changes.
Transformation Initiative to Boost Top Line
Notably, Greif expects its adjusted earnings per share for fiscal 2018 to be in the range of $3.25-$3.55, reflecting an improvement of 15% at the mid-point over fiscal 2017. The company anticipates that its transformation initiative will drive growth in fiscal 2018. While the three-year transformation may have officially concluded in fiscal 2017, optimization activities identified during the initiative will continue into fiscal 2018.
Segment Growth Drivers
Further, the company's Rigid Industrial Packaging & Services segment, which accounted for 69% of sales in fiscal 2017 recorded 8.5% year over year sales growth for the fiscal. Greif expects that the segment's gross margin will improve sequentially in first-quarter fiscal 2018 led by strategic pricing decisions.
In fiscal 2018, Greif's Paper Packaging segment will benefit from realized containerboard price increases implemented over the course of fiscal 2017 and higher anticipated specialty sales. Further, the Flexible Products & Services segment will gain from third-party manufacturing initiatives and a more optimized SG&A footprint.
Elevated Costs to Mar Income
Greif expects to spend $5 million of incremental professional fees in fiscal 2018 to further its strategy as well as to address pending tax-reform changes. Particularly, tax rate volatility due to foreign earnings repatriation provisions under the proposed lower U.S. corporate tax rates may lead to additional charges.
Share Price Performance
Shares of the company have outperformed the industry over the past year. The stock has gained 17.7%, while the industry registered 13.3% growth during the same time frame.
Zacks Rank & Key Picks
Greif carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industrial product space are Caterpillar Inc. CAT , Deere & Company DE and H&E Equipment Services, Inc. HEES , all sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have surged 60.2%, year to date.
Deere has a long-term earnings growth rate of 8.2%. So far this year, its shares have rallied 47.5%.
H&E Equipment has a long-term earnings growth rate of 15.6%. The stock has appreciated 65.6% during the same time frame.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Greif Bros. Corporation (GEF): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Greif expects that the segment's gross margin will improve sequentially in first-quarter fiscal 2018 led by strategic pricing decisions. Some better-ranked stocks in the industrial product space are Caterpillar Inc. CAT , Deere & Company DE and H&E Equipment Services, Inc. HEES , all sporting a Zacks Rank of 1 (Strong Buy). On Dec 13, we issued an updated research report on Greif, Inc.GEF .
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In addition, its segments will gain from higher specialty sales and strategic pricing decisions. Some better-ranked stocks in the industrial product space are Caterpillar Inc. CAT , Deere & Company DE and H&E Equipment Services, Inc. HEES , all sporting a Zacks Rank of 1 (Strong Buy). Corporation (GEF): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Segment Growth Drivers Further, the company's Rigid Industrial Packaging & Services segment, which accounted for 69% of sales in fiscal 2017 recorded 8.5% year over year sales growth for the fiscal. Corporation (GEF): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. On Dec 13, we issued an updated research report on Greif, Inc.GEF .
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Segment Growth Drivers Further, the company's Rigid Industrial Packaging & Services segment, which accounted for 69% of sales in fiscal 2017 recorded 8.5% year over year sales growth for the fiscal. Some better-ranked stocks in the industrial product space are Caterpillar Inc. CAT , Deere & Company DE and H&E Equipment Services, Inc. HEES , all sporting a Zacks Rank of 1 (Strong Buy). On Dec 13, we issued an updated research report on Greif, Inc.GEF .
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f5dbb228-e70a-4102-ba86-f5a1988d60ec
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722177.0
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2017-12-13 00:00:00 UTC
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ABB to Grow on Robust Demand, Buyouts & Cost Restructuring
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DE
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https://www.nasdaq.com/articles/abb-to-grow-on-robust-demand-buyouts-cost-restructuring-2017-12-13
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nan
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nan
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Investors seem to be optimistic about ABB Ltd'sABB recent earnings beat streak, as the company's earnings have trumped estimates in each of the four trailing quarters. We expect this Zacks Rank #2 (Buy) company to continue to accelerate its momentum, driven by contribution from its accretive acquisitions, successful restructuring efforts and cost saving initiatives.
ABB's shares have fared well in recent times as well, reflecting investor confidence. The company's shares have appreciated 24.2% over the past year, outperforming the industry 's average gain of 16.6%. Read on to find out the key growth drivers for ABB right now.
Growth Drivers
Steady growth in revenues in the Electrification Products and Robotics & Motion segments has been a key contributor to ABB's momentum. The Robotics and Motion segment is has been enjoying robust demand patterns in robotics and light industry, while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
ABB has earned a solid reputation for winning strategic awards and forging important partnerships. ABB recently teamed up with Hewlett Packard Enterprise to integrate its industry-leading digital offering - ABB Ability - with Hewlett Packard's innovative hybrid information technology solutions. The partnership will leverage ABB's expertise in operations technologies ("OT") and Hewlett Packard Enterprise's proficiency in IT to come up with joint industry solutions, which will help turn industrial data into insights and automatic action.
ABB also joined forces with Kawasaki Heavy Industries Ltd. recently to share knowledge and promote the benefits of collaborative robots, particularly those having dual arm designs.
We are highly optimistic about ABB's recent $2.6-billion acquisition of GE Industrial Solutions, which will fortify its global foothold in electrification, and expand the company's access to the North American market.
Further, the company anticipates the recent B&R buyout to bridge the gap in machine and factory automation, while also generating tremendous operational synergies. ABB anticipates these acquisitions to help shift its focus to higher growth segments, consequently becoming more competitive. ABB also agreed to acquire the data transmission business of the KEYMILE Group in July. This buyout is expected to expand communication networks business footprint in the industrial, transportation and infrastructure domains.
The company is highly positive about the impact of its White-Collar Productivity savings program, which has garnered significant cost savings over the past few quarters. Moreover, positive investments made by all three major markets of the company, namely utilities, industry and transport & infrastructure, are expected to boost the financials, going forward.
The consensus analyst community's optimism toward the stock is reflected in its upward earnings estimate revisions. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to $1.24 from $1.22 over the past 60 days, and reflects bullish analyst sentiment.
ABB Ltd Price, Consensus and EPS Surprise
ABB Ltd Price, Consensus and EPS Surprise | ABB Ltd Quote
Despite these positives, ABB's exposure to oil and gas markets makes it susceptible to current price volatility in the market, posing a severe challenge. We believe lower capital spending for the upstream energy end-markets might hurt financials as well. In addition to these, sluggish industrial production and the projected slowdown are weighing on the company's financials. Currently, the industrial slowdown in China is posing another threat to the company's profitability, and might impact its performance in the upcoming quarters.
Other Stocks to Consider
Some top-ranked stocks in the broader space are Deere & Company DE , Briggs & Stratton Corporation BGG and Alamo Group, Inc. ALG , each sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company generated four outstanding beats over the trailing four quarters, for an impressive average positive surprise of 19.5%.
Briggs & Stratton has beaten estimates thrice in the trailing four quarters, and generated an average positive surprise of 8.6% during the same period.
Alamo Group has a decent earnings surprise history for the same time frame, having beaten estimates twice for an average beat of 6.1%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABB Ltd (ABB): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ABB also joined forces with Kawasaki Heavy Industries Ltd. recently to share knowledge and promote the benefits of collaborative robots, particularly those having dual arm designs. ABB's shares have fared well in recent times as well, reflecting investor confidence. The Robotics and Motion segment is has been enjoying robust demand patterns in robotics and light industry, while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
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ABB Ltd Price, Consensus and EPS Surprise ABB Ltd Price, Consensus and EPS Surprise | ABB Ltd Quote Despite these positives, ABB's exposure to oil and gas markets makes it susceptible to current price volatility in the market, posing a severe challenge. Other Stocks to Consider Some top-ranked stocks in the broader space are Deere & Company DE , Briggs & Stratton Corporation BGG and Alamo Group, Inc. ALG , each sporting a Zacks Rank of 1 (Strong Buy). Click to get this free report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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ABB Ltd Price, Consensus and EPS Surprise ABB Ltd Price, Consensus and EPS Surprise | ABB Ltd Quote Despite these positives, ABB's exposure to oil and gas markets makes it susceptible to current price volatility in the market, posing a severe challenge. Other Stocks to Consider Some top-ranked stocks in the broader space are Deere & Company DE , Briggs & Stratton Corporation BGG and Alamo Group, Inc. ALG , each sporting a Zacks Rank of 1 (Strong Buy). Click to get this free report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks to Consider Some top-ranked stocks in the broader space are Deere & Company DE , Briggs & Stratton Corporation BGG and Alamo Group, Inc. ALG , each sporting a Zacks Rank of 1 (Strong Buy). ABB's shares have fared well in recent times as well, reflecting investor confidence. The Robotics and Motion segment is has been enjoying robust demand patterns in robotics and light industry, while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
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32dbc614-82ed-434b-8b9e-ead441354164
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722178.0
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2017-12-13 00:00:00 UTC
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Lindsay (LNN) Downgraded to Sell on Near-Term Headwinds
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DE
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https://www.nasdaq.com/articles/lindsay-lnn-downgraded-to-sell-on-near-term-headwinds-2017-12-13
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nan
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nan
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On Dec 13, Lindsay CorporationLNN was downgraded to a Zacks Rank #4 (Sell).
The downgrade underlines negative estimate revisions following the disappointing fourth-quarter fiscal 2017 results and rising near-term headwinds.
Notably, Lindsay's share price movement has not been much impressive since it reported the fiscal fourth-quarter results. The company's shares have underperformed the S&P 500 index over the past two months. While the index has gained 4.6%, the stock has recorded 2% growth. It has also underperformed the industry 's growth of 14.5% during the same time frame.
Key Factors
Lindsay's bottom line in the fiscal fourth quarter was adversely impacted by a higher effective income tax. Both top and bottom lines missed the Zacks Consensus Estimate. Lower infrastructure spending, challenging political and economic conditions, and currency headwinds are expected to thwart the company's performance in the near term as well.
Notably, Lindsay's Road Zipper System projects will be impacted by insignificant increase in spending for surface transportation projects under the current Federal Highway Bill, the FAST (Fixing America's Surface Transportation) Act.
Moreover, in the international markets, regional political and economic factors, currency conditions and local competition have given rise to a challenging environment for Lindsay. Additionally, the company's international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.
Further, its estimates have recorded a downtrend over the past 60 days. For fiscal 2017, estimates moved down roughly 1.3% to $2.94. The Zacks Consensus Estimate for fiscal 2018 also declined 4.6% over the same time period to $3.55.
Lindsay Corporation Price and Consensus
Lindsay Corporation Price and Consensus | Lindsay Corporation Quote
Stocks to Consider
Some better-ranked players in the industry are Deere & Co. DE , Kubota Corp. KUBTY and ACCO Brands Corp. ACCO . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 46.6%, year to date.
Kubota Corporation has a long-term earnings growth rate of 10.7%. So far this year, shares of the company have gained 30.6%.
ACCO Brands has a long-term earnings growth rate of 10%. The stock has rallied 46.9% in the year so far.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Kubota Corp. (KUBTY): Free Stock Analysis Report
Acco Brands Corporation (ACCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Dec 13, Lindsay CorporationLNN was downgraded to a Zacks Rank #4 (Sell). The downgrade underlines negative estimate revisions following the disappointing fourth-quarter fiscal 2017 results and rising near-term headwinds. The company's shares have underperformed the S&P 500 index over the past two months.
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Lindsay Corporation Price and Consensus Lindsay Corporation Price and Consensus | Lindsay Corporation Quote Stocks to Consider Some better-ranked players in the industry are Deere & Co. DE , Kubota Corp. KUBTY and ACCO Brands Corp. ACCO . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Lindsay Corporation Price and Consensus Lindsay Corporation Price and Consensus | Lindsay Corporation Quote Stocks to Consider Some better-ranked players in the industry are Deere & Co. DE , Kubota Corp. KUBTY and ACCO Brands Corp. ACCO . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Kubota Corp. (KUBTY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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While the index has gained 4.6%, the stock has recorded 2% growth. Lindsay Corporation Price and Consensus Lindsay Corporation Price and Consensus | Lindsay Corporation Quote Stocks to Consider Some better-ranked players in the industry are Deere & Co. DE , Kubota Corp. KUBTY and ACCO Brands Corp. ACCO . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy).
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e9a485bb-b08f-439b-8cee-ed8c414b67f9
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722179.0
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2017-12-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Deere, Alamo Group, Luxfer Holdings and Sonoco Products
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-deere-alamo-group-luxfer-holdings-and-sonoco-products
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nan
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nan
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For Immediate Release
Chicago, IL - Dec 8, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Deere & Company DE , Alamo Group Inc.ALG , Luxfer Holdings PLCLXFR and Sonoco Products CompanySON .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Thursday's Analyst Blog:
4 Machinery Stocks Near 52-Week Highs with More Room to Run
Investors are constantly striving to determine which industry or sector holds the most potential for capital gains. After a harrowing last year, the industrial sector seems to be back in favor this year amid a global growth backdrop. It was one of the most adversely impacted sectors last year stemming from weak commodity prices, reduced investment in the energy sector due to lower oil prices , poor economic conditions in some developed and developing nations, and Brexit.
The scenario has improved with few indicators pointing toward healthy operating conditions in the industry. Per the U.S. Census Bureau report, new orders for U.S.-manufactured machinery increased 6.4% in the first nine months of 2017 led by growth in orders for construction, mining, industrial, material handling and other machineries.
Industrial production, one of the leading economic indicators for the industrial stocks, rose 0.9% in October. Manufacturing increased 1.3% while mining output fell 1.3%, as Hurricane Nate caused a short-term decline in oil and gas drilling as well as extraction. Industrial activity rose in October as normal operations resumed after Hurricanes Harvey and Irma hit production in September and October. Further, industrial production has grown 2.9% in the past 12 months, which bodes well for machinery stocks.
Per the Institute for Supply Management (ISM), its index of national factory activity slipped to a reading of 58.7 in October from 60.8 in September. The reading in September was the highest since May 2004 riven by supply chain disruptions. Though the index has slipped in October, it continues to signal strengthening manufacturing conditions. Notably, a reading above 50 indicates increased factory activity. The manufacturing sector accounts for about 12% of the U.S. economy.
According to the second estimate, U.S. GDP expanded at 3.3% in the third quarter of 2017 - the fastest pace of growth in three years. Per a report by the Commerce Department, consumer spending advanced 2.3% in 3Q17. Unemployment in the United States is currently at a 17-year low. In October, the United States created 261,000 jobs in October while the unemployment rate declined from 4.2% to 4.1.
Solid Sector Positioning, Projections
Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Year to date, the industrial products sector (one of the 16 broad Zacks sectors) has clocked a gain of 20.1%, outperforming the S&P 500's climb of 16.9%.
The Industrial Products sector put up an impressive 19.6% growth in earnings in third-quarter 2017. Per our latest Earnings Trends report, earnings growth of 21.3% is projected for fourth-quarter 2017. It is one the four sectors that is expected to log double-digit growth in earnings in the fourth quarter.
We put our Sectors (all 16 of them) into two groups: the top half (i.e., sectors with the best average Zacks Rank) and the bottom half (the sectors with the worst average Zacks Rank). In the last 10 years, using a one week rebalance, the top half beat the bottom half by more than twice as much. (To learn more visit: About Zacks Sector Rank ). The industrial products sector, with a Zacks Sector Rank #5, remains in the top half.
What Factors Will Help Sustain Growth?
The continuous advancements in technologies applied in agriculture and mining industries keep demand strong for farming and mining machinery. Long-term demand for agricultural equipment will be buoyed by increased global demand for food.
Further, favorable trends resulting from a growing, more affluent and increasing population along with rising living standards and dietary improvements will provide ample opportunity for long-term growth. Healthy growth in demand for packaged foods and beverages across nations, especially in emerging countries, are significantly increasing the use of highly sophisticated food processing and packaging equipment.
Construction machinery demand will remain strong in the years to come aided by population growth, urbanization, increased energy consumption as well as an expanding middle class. Further, increasing demand for global infrastructure, such as roads, housing, airports, and energy will help sustain growth.
We believe that implementation of the Trump government's growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will be a boon for industrial machinery stocks.
Thus we suggest you to stay invested in the sector to reap the benefits of healthy prospects ahead. To zero in on stocks that are winning currently and have the potential to gain further, we have opted for one of the relatively new investment techniques, by betting on stocks near a 52-week high. The 52-week investment strategy relies on the new investment mantra, "buy high and sell higher."
Why These Stocks Are Good Bets
Investing in stocks near their 52-week high is similar to following the momentum strategy, which is based on the premise that once a trend is established, it is likely to continue. The surge can be attributed to a broad set of factors including impressive sales, robust profitability and bullish earnings prospects. Major developments may also send stocks soaring.
Meanwhile, stocks that are trading near their 52-week highs carry the risk of declining rapidly as the market might consider them overvalued. But the positives seem to outweigh drawbacks.
Notably, momentum investors strongly believe in "the trend is your friend," which means stocks that are growing will continue to grow. They make short-term choices among stocks that are scaling up and sell them at the first sign of a downtrend. The basic idea is that once a trend is recognized, it is likely to continue and the chances of a reversal are minimal.
Consequently, picking such stocks might help investors earn higher returns in the short term. However, this is only a speculative strategy and not meant for the faint hearted.
Stocks That Fit the Bill
Given their positive earnings revisions, we believe these four industrial stocks, all of which are near their 52-week highs, will continue moving north for now. The stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have a Momentum Style Score of A or B. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company manufactures and distributes agriculture and turf, along with construction and forestry equipment worldwide. The company has a Zacks Rank #1 and Momentum Score of A. The long-term expected earnings growth rate for Deere is 8%. It has outpaced the Zacks Consensus Estimate in the trailing four quarters, generating a positive average earnings surprise of 19.5%.
The estimate for fiscal 2017 climbed 14% in the past 30 days and moved north 21% for fiscal 2018. The stock has gained 45.0% so far this year, outscoring the industry's 41.3% gain. It is trading near its 52-week high of $152.68.
Alamo Group Inc. designs, manufactures, and sells agricultural equipment and infrastructure maintenance equipment for governmental and industrial use worldwide. The stock has a Zacks Rank #2 and a Momentum Style Score of A. The company has delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 6.12%.
Sentiments are in favor of the company, as evident from the positive earnings estimate revisions of 7% for 2017 and 12% for 2018 in the last 60 days. The stock has logged a year-to-date gain of 49.6% and is trading near its 52-week high of $152.68.
Luxfer Holdings PLC designs, manufactures, and supplies high-performance materials, components, and high-pressure gas-containment devices for healthcare, environmental, protection, and specialty end-markets in Europe, North America, and internationally. The stock has a Zacks Rank #2 and a Momentum Style Score of A. The company has an average beat of 10.67% in the last four quarters.
The earnings estimates for the company for 2017 have moved up 3% in the last 30 days. Closing at $14.73 yesterday, the stock has gained 19.8% so far this year. The stock is near its 52-week high of $14.87.
Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The stock carries a Zacks Rank #2 and has a Momentum Style Score of B. The company has a long-term expected earnings growth rate of 4.67%. Both the earnings estimates for the company for 2017 and 2018 have moved up 2%, in the last 60 days. The stock gained 3.8% so far this year and is near its 52-week high of $55.07.
Looking Ahead
These stocks have growth potential as evident from their estimate revisions and price appreciation. We anticipate these stocks to yield strong returns in the short term and scale higher by this year end.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sonoco Products Company (SON): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Luxfer Holdings PLC (LXFR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are highlights from Thursday's Analyst Blog: 4 Machinery Stocks Near 52-Week Highs with More Room to Run Investors are constantly striving to determine which industry or sector holds the most potential for capital gains. Luxfer Holdings PLC designs, manufactures, and supplies high-performance materials, components, and high-pressure gas-containment devices for healthcare, environmental, protection, and specialty end-markets in Europe, North America, and internationally. Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
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Stocks recently featured in the blog include Deere & Company DE , Alamo Group Inc.ALG , Luxfer Holdings PLCLXFR and Sonoco Products CompanySON . Solid Sector Positioning, Projections Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Luxfer Holdings PLC (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here.
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Solid Sector Positioning, Projections Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Luxfer Holdings PLC (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Dec 8, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog.
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For Immediate Release Chicago, IL - Dec 8, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Stocks recently featured in the blog include Deere & Company DE , Alamo Group Inc.ALG , Luxfer Holdings PLCLXFR and Sonoco Products CompanySON . Here are highlights from Thursday's Analyst Blog: 4 Machinery Stocks Near 52-Week Highs with More Room to Run Investors are constantly striving to determine which industry or sector holds the most potential for capital gains.
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36f821c8-a0d8-4b1d-8bca-6553d2cfafd1
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722180.0
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2017-12-07 00:00:00 UTC
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Surging Earnings Estimates Signal Good News for Deere & Company (DE)
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DE
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https://www.nasdaq.com/articles/surging-earnings-estimates-signal-good-news-for-deere-company-de-2017-12-07
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nan
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nan
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Deere & CompanyDE manufactures and distributes agriculture, turf, construction and forestry equipment worldwide, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.
These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DE's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Deere & Company could be a solid choice for investors.
Current Quarter Estimates for DE
In the past 30 days, five estimates have gone higher for Deere & Company while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 88 cents a share 30 days ago, to $1.08 today, a move of 22.7%.
Current Year Estimates for DE
Meanwhile, Deere & Company's current year figures are also looking quite promising, with ten estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $6.91 per share 30 days ago to $7.90 per share today, an increase of 14.3%.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
Bottom Line
The stock has also started to move higher lately, adding 11% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today's Zacks #1 Rank stocks here .
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE manufactures and distributes agriculture, turf, construction and forestry equipment worldwide, could be an interesting play for investors. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Deere & Company could be a solid choice for investors. Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
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Current Year Estimates for DE Meanwhile, Deere & Company's current year figures are also looking quite promising, with ten estimates moving higher in the past month, compared to none lower. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Bottom Line The stock has also started to move higher lately, adding 11% over the past four weeks, suggesting that investors are starting to take note of this impressive story. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Current Quarter Estimates for DE In the past 30 days, five estimates have gone higher for Deere & Company while none have gone lower in the same time period. Current Year Estimates for DE Meanwhile, Deere & Company's current year figures are also looking quite promising, with ten estimates moving higher in the past month, compared to none lower. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Bottom Line The stock has also started to move higher lately, adding 11% over the past four weeks, suggesting that investors are starting to take note of this impressive story.
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Current Quarter Estimates for DE In the past 30 days, five estimates have gone higher for Deere & Company while none have gone lower in the same time period. Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). Deere & CompanyDE manufactures and distributes agriculture, turf, construction and forestry equipment worldwide, could be an interesting play for investors.
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e1205a33-deae-4bbc-a608-33e065e97379
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722181.0
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2017-12-07 00:00:00 UTC
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4 Machinery Stocks Near 52-Week High with More Room to Run
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DE
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https://www.nasdaq.com/articles/4-machinery-stocks-near-52-week-high-with-more-room-to-run-2017-12-07
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nan
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nan
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Investors are constantly striving to determine which industry or sector holds the most potential for capital gains. After a harrowing last year, the industrial sector seems to be back in favor this year amid a global growth backdrop. It was one of the most adversely impacted sectors last year stemming from weak commodity prices, reduced investment in the energy sector due to lower oil prices , poor economic conditions in some developed and developing nations, and Brexit.
The scenario has improved with few indicators pointing toward healthy operating conditions in the industry. Per the U.S. Census Bureau report, new orders for U.S.-manufactured machinery increased 6.4% in the first nine months of 2017 led by growth in orders for construction, mining, industrial, material handling and other machineries.
Industrial production, one of the leading economic indicators for the industrial stocks, rose 0.9% in October. Manufacturing increased 1.3% while mining output fell 1.3%, as Hurricane Nate caused a short-term decline in oil and gas drilling as well as extraction. Industrial activity rose in October as normal operations resumed after Hurricanes Harvey and Irma hit production in September and October. Further, industrial production has grown 2.9% in the past 12 months, which bodes well for machinery stocks.
Per the Institute for Supply Management (ISM), its index of national factory activity slipped to a reading of 58.7 in October from 60.8 in September. The reading in September was the highest since May 2004 riven by supply chain disruptions. Though the index has slipped in October, it continues to signal strengthening manufacturing conditions. Notably, a reading above 50 indicates increased factory activity. The manufacturing sector accounts for about 12% of the U.S. economy.
According to the second estimate, U.S. GDP expanded at 3.3% in the third quarter of 2017 - the fastest pace of growth in three years. Per a report by the Commerce Department, consumer spending advanced 2.3% in 3Q17. Unemployment in the United States is currently at a 17-year low. In October, the United States created 261,000 jobs in October while the unemployment rate declined from 4.2% to 4.1.
Solid Sector Positioning, Projections
Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Year to date, the industrial products sector (one of the 16 broad Zacks sectors) has clocked a gain of 20.1%, outperforming the S&P 500's climb of 16.9%.
The Industrial Products sector put up an impressive 19.6% growth in earnings in third-quarter 2017. Per our latest Earnings Trends report, earnings growth of 21.3% is projected for fourth-quarter 2017. It is one the four sectors that is expected to log double-digit growth in earnings in the fourth quarter.
We put our Sectors (all 16 of them) into two groups: the top half (i.e., sectors with the best average Zacks Rank) and the bottom half (the sectors with the worst average Zacks Rank). In the last 10 years, using a one week rebalance, the top half beat the bottom half by more than twice as much. (To learn more visit: About Zacks Sector Rank ). The industrial products sector, with a Zacks Sector Rank #5, remains in the top half.
What Factors Will Help Sustain Growth?
The continuous advancements in technologies applied in agriculture and mining industries keep demand strong for farming and mining machinery. Long-term demand for agricultural equipment will be buoyed by increased global demand for food.
Further, favorable trends resulting from a growing, more affluent and increasing population along with rising living standards and dietary improvements will provide ample opportunity for long-term growth. Healthy growth in demand for packaged foods and beverages across nations, especially in emerging countries, are significantly increasing the use of highly sophisticated food processing and packaging equipment.
Construction machinery demand will remain strong in the years to come aided by population growth, urbanization, increased energy consumption as well as an expanding middle class. Further, increasing demand for global infrastructure, such as roads, housing, airports, and energy will help sustain growth.
We believe that implementation of the Trump government's growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will be a boon for industrial machinery stocks.
Thus we suggest you to stay invested in the sector to reap the benefits of healthy prospects ahead. To zero in on stocks that are winning currently and have the potential to gain further, we have opted for one of the relatively new investment techniques, by betting on stocks near a 52-week high. The 52-week investment strategy relies on the new investment mantra, "buy high and sell higher."
Why These Stocks Are Good Bets
Investing in stocks near their 52-week high is similar to following the momentum strategy, which is based on the premise that once a trend is established, it is likely to continue. The surge can be attributed to a broad set of factors including impressive sales, robust profitability and bullish earnings prospects. Major developments may also send stocks soaring.
Meanwhile, stocks that are trading near their 52-week highs carry the risk of declining rapidly as the market might consider them overvalued. But the positives seem to outweigh drawbacks.
Notably, momentum investors strongly believe in "the trend is your friend," which means stocks that are growing will continue to grow. They make short-term choices among stocks that are scaling up and sell them at the first sign of a downtrend. The basic idea is that once a trend is recognized, it is likely to continue and the chances of a reversal are minimal.
Consequently, picking such stocks might help investors earn higher returns in the short term. However, this is only a speculative strategy and not meant for the faint hearted.
Stocks That Fit the Bill
Given their positive earnings revisions, we believe these four industrial stocks, all of which are near their 52-week highs, will continue moving north for now. The stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have a Momentum Style Score of A or B. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & CompanyDE manufactures and distributes agriculture and turf, along with construction and forestry equipment worldwide. The company has a Zacks Rank #1 and Momentum Score of A. The long-term expected earnings growth rate for Deere is 8%. It has outpaced the Zacks Consensus Estimate in the trailing four quarters, generating a positive average earnings surprise of 19.5%.
The estimate for fiscal 2017 climbed 14% in the past 30 days and moved north 21% for fiscal 2018. The stock has gained 45.0% so far this year, outscoring the industry's 41.3% gain. It is trading near its 52-week high of $152.68.
Alamo Group Inc.ALG designs, manufactures, and sells agricultural equipment and infrastructure maintenance equipment for governmental and industrial use worldwide. The stock has a Zacks Rank #2 and a Momentum Style Score of A. The company has delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 6.12%.
Sentiments are in favor of the company, as evident from the positive earnings estimate revisions of 7% for 2017 and 12% for 2018 in the last 60 days. The stock has logged a year-to-date gain of 49.6% and is trading near its 52-week high of $152.68.
Luxfer Holdings PLCLXFR designs, manufactures, and supplies high-performance materials, components, and high-pressure gas-containment devices for healthcare, environmental, protection, and specialty end-markets in Europe, North America, and internationally. The stock has a Zacks Rank #2 and a Momentum Style Score of A. The company has an average beat of 10.67% in the last four quarters.
The earnings estimates for the company for 2017 have moved up 3% in the last 30 days. Closing at $14.73 yesterday, the stock has gained 19.8% so far this year. The stock is near its 52-week high of $14.87.
Sonoco Products CompanySON manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The stock carries a Zacks Rank #2 and has a Momentum Style Score of B. The company has a long-term expected earnings growth rate of 4.67%. Both the earnings estimates for the company for 2017 and 2018 have moved up 2%, in the last 60 days. The stock gained 3.8% so far this year and is near its 52-week high of $55.07.
Looking Ahead
These stocks have growth potential as evident from their estimate revisions and price appreciation. We anticipate these stocks to yield strong returns in the short term and scale higher by this year end.
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Sonoco Products Company (SON): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Luxfer Holdings PLC (LXFR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, favorable trends resulting from a growing, more affluent and increasing population along with rising living standards and dietary improvements will provide ample opportunity for long-term growth. Luxfer Holdings PLCLXFR designs, manufactures, and supplies high-performance materials, components, and high-pressure gas-containment devices for healthcare, environmental, protection, and specialty end-markets in Europe, North America, and internationally. Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
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Solid Sector Positioning, Projections Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Luxfer Holdings PLC (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here. Investors are constantly striving to determine which industry or sector holds the most potential for capital gains.
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Solid Sector Positioning, Projections Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Luxfer Holdings PLC (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here. Investors are constantly striving to determine which industry or sector holds the most potential for capital gains.
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Investors are constantly striving to determine which industry or sector holds the most potential for capital gains. It was one of the most adversely impacted sectors last year stemming from weak commodity prices, reduced investment in the energy sector due to lower oil prices , poor economic conditions in some developed and developing nations, and Brexit. Per the U.S. Census Bureau report, new orders for U.S.-manufactured machinery increased 6.4% in the first nine months of 2017 led by growth in orders for construction, mining, industrial, material handling and other machineries.
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722182.0
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2017-12-06 00:00:00 UTC
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Sealed Air Hikes Prices in EMEA to Combat Escalating Costs
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DE
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https://www.nasdaq.com/articles/sealed-air-hikes-prices-in-emea-to-combat-escalating-costs-2017-12-06
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Sealed Air CorporationSEE announced a 2.5-5% price hike on majority of its Food Care division's products in Europe, Middle East and Africa (EMEA), effective Jan 1, 2018, in order to remain profitable regardless of higher raw material and other input costs.
Notably, the company raised prices in EMEA as polyethylene (PE) market prices remain highly uncertain in the region due to a slump in upstream market activity. However, Sealed Air refrained from price hikes in Switzerland and the U.K. at this moment, as it had raised prices in the regions earlier this year.
According to Sealed Air, persistent spike in costs of key raw materials, including a 19% in PE, 16% in nylon and 35% in polystyrene, led to the hike. The prices for these raw materials are cyclical, and depend on fluctuations in prices of petrochemical-based raw materials and energy.
Sealed Air Corporation Price
Sealed Air Corporation Price | Sealed Air Corporation Quote
The recent price hike also stemmed from rise in non-material costs, including power, labor and transportation, in the range of 1-4%. The hike will be applied to all shrink bags, rollstock products, food films and vertical pouch packaging.
The escalating raw material costs have partly shadowed Sealed Air's price performance compared to the industry it belongs to. The company has underperformed its industry in a year's time, recording a mere gain of 3%, which is in huge contrast with 14.5% growth recorded by the industry.
Nevertheless, Sealed Air is anticipated to grow on the back of enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market, as well as the e-commerce sector.
Zacks Rank & Key Picks
Sealed Air currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . All three stocks flaunt a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have been up 51.1%, year to date.
Deere has a long-term earnings growth rate of 8.2%. So far this year, shares of the company have gained 46.2%.
Terex has a long-term earnings growth rate of 11.3%. The company's shares have rallied 45.9% during the same time frame.
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Sealed Air Corporation (SEE): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sealed Air CorporationSEE announced a 2.5-5% price hike on majority of its Food Care division's products in Europe, Middle East and Africa (EMEA), effective Jan 1, 2018, in order to remain profitable regardless of higher raw material and other input costs. Nevertheless, Sealed Air is anticipated to grow on the back of enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market, as well as the e-commerce sector. The prices for these raw materials are cyclical, and depend on fluctuations in prices of petrochemical-based raw materials and energy.
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Some better-ranked stocks in the same space are Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . Click to get this free report Sealed Air Corporation (SEE): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Sealed Air CorporationSEE announced a 2.5-5% price hike on majority of its Food Care division's products in Europe, Middle East and Africa (EMEA), effective Jan 1, 2018, in order to remain profitable regardless of higher raw material and other input costs.
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Sealed Air CorporationSEE announced a 2.5-5% price hike on majority of its Food Care division's products in Europe, Middle East and Africa (EMEA), effective Jan 1, 2018, in order to remain profitable regardless of higher raw material and other input costs. Click to get this free report Sealed Air Corporation (SEE): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The prices for these raw materials are cyclical, and depend on fluctuations in prices of petrochemical-based raw materials and energy.
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Sealed Air CorporationSEE announced a 2.5-5% price hike on majority of its Food Care division's products in Europe, Middle East and Africa (EMEA), effective Jan 1, 2018, in order to remain profitable regardless of higher raw material and other input costs. Click for details >> Want the latest recommendations from Zacks Investment Research? The prices for these raw materials are cyclical, and depend on fluctuations in prices of petrochemical-based raw materials and energy.
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b89db748-956b-42de-ba01-9023d64824a3
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722183.0
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2017-12-06 00:00:00 UTC
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How and Why Deere & Company Stock Crushed It in November
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https://www.nasdaq.com/articles/how-and-why-deere-company-stock-crushed-it-november-2017-12-06
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What happened
Agricultural equipment manufacturer Deere & Company (NYSE: DE) soared 12.8% in November on the back of a strong set of fourth-quarter earnings and a positive outlook for 2018. It's been a difficult few years for the company but 2017 marked the passing of a trough in revenue and earnings and Deere looks set for an upswing in the agricultural machinery cycle.
Here's a quick recap of the full-year earnings compared to the full-year guidance given on the third-quarter earnings call alongside the formal guidance for full-year 2018.
Data source: Deere & Company presentations. Millions of U.S. dollars. *15% excluding the impact of the Wirtgen acquisition. **10% excluding Wirtgen.
The headline data and guidance is good enough, but it only tells part of the story. The underlying takeaway from the earnings report is that U.S. and Canada agriculture equipment sales -- Deere's most important end market -- are forecast to increase 5%-10% in 2018 following a decline in 2017.
The positive outlook in North America comes despite Deere's expectation that U.S. farm cash receipts will decline 2% in 2018 to $368 billion after increasing 3% in 2017. Discussing the North American outlook on the recent earnings call Manager of Investor Communications Josh Jepsen said:
So what
The results and outlook help confirm the fact that Deere's management has done a good job in managing the downturn and that the cycle is starting to turn. In particular, the positive outlook and commentary on replacement demand for large agricultural equipment -- a problem area for the company -- in North America is a sign that farmers can no longer defer purchasing equipment. Meanwhile, the strong outlook for forestry & construction confirms what competitors like Caterpillar Inc. (NYSE: CAT) have been saying recently. Here's how Caterpillar crushed it in 2017 .
Now what
Aside from hitting the numbers in 2018, investors can look forward to the potential upside from construction coming from an infrastructure stimulus. In addition, Deere's positive forecast for North American agriculture machinery sales is being made despite ongoing price weakness in key crops like corn and soybeans. This means that any kind of increase in crop prices, and consequently farmers' income, could boost the sales recovery even further. Something to look out for.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Agricultural equipment manufacturer Deere & Company (NYSE: DE) soared 12.8% in November on the back of a strong set of fourth-quarter earnings and a positive outlook for 2018. The underlying takeaway from the earnings report is that U.S. and Canada agriculture equipment sales -- Deere's most important end market -- are forecast to increase 5%-10% in 2018 following a decline in 2017. In addition, Deere's positive forecast for North American agriculture machinery sales is being made despite ongoing price weakness in key crops like corn and soybeans.
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What happened Agricultural equipment manufacturer Deere & Company (NYSE: DE) soared 12.8% in November on the back of a strong set of fourth-quarter earnings and a positive outlook for 2018. Discussing the North American outlook on the recent earnings call Manager of Investor Communications Josh Jepsen said: So what The results and outlook help confirm the fact that Deere's management has done a good job in managing the downturn and that the cycle is starting to turn. In addition, Deere's positive forecast for North American agriculture machinery sales is being made despite ongoing price weakness in key crops like corn and soybeans.
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What happened Agricultural equipment manufacturer Deere & Company (NYSE: DE) soared 12.8% in November on the back of a strong set of fourth-quarter earnings and a positive outlook for 2018. Discussing the North American outlook on the recent earnings call Manager of Investor Communications Josh Jepsen said: So what The results and outlook help confirm the fact that Deere's management has done a good job in managing the downturn and that the cycle is starting to turn. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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The underlying takeaway from the earnings report is that U.S. and Canada agriculture equipment sales -- Deere's most important end market -- are forecast to increase 5%-10% in 2018 following a decline in 2017. What happened Agricultural equipment manufacturer Deere & Company (NYSE: DE) soared 12.8% in November on the back of a strong set of fourth-quarter earnings and a positive outlook for 2018. It's been a difficult few years for the company but 2017 marked the passing of a trough in revenue and earnings and Deere looks set for an upswing in the agricultural machinery cycle.
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fa3be436-1f18-4cfd-ae82-7980c357ee9f
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722184.0
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2017-12-06 00:00:00 UTC
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Daily Dividend Report: SYK, ADC, MO, DHR, DE
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https://www.nasdaq.com/articles/daily-dividend-report-syk-adc-mo-dhr-de-2017-12-06
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Stryker Corporation ( SYK ) has declared a quarterly dividend of $0.47 per share payable on January 31, 2018 to shareholders of record at the close of business on December 29, 2017, representing an increase of approximately 11% versus the prior year and the previous quarter.
Agree Realty Corporation ( ADC ) has authorized, and the Company has declared, a quarterly cash dividend of $0.520 per common share, an increase of 3.0% over the Company's previous quarterly dividend. This is the Company's 95th consecutive cash dividend and represents a five-year increase of 30% over the Company's 2012 quarterly dividend. The dividend is payable January 3, 2018 to shareholders of record at the close of business on December 20, 2017.
Altria Group ( MO ) declared a regular quarterly dividend of $0.66 per common share, payable on January 10, 2018, to shareholders of record as of December 21, 2017. The ex-dividend date is December 20, 2017.
Danaher Corporation ( DHR ) has approved a regular quarterly dividend of $0.14 per share payable on January 26, 2018 to holders of record on December 29, 2017.
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2018, to stockholders of record on December 29, 2017.
VIDEO: Daily Dividend Report: SYK, ADC, MO, DHR, DE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altria Group ( MO ) declared a regular quarterly dividend of $0.66 per common share, payable on January 10, 2018, to shareholders of record as of December 21, 2017. Danaher Corporation ( DHR ) has approved a regular quarterly dividend of $0.14 per share payable on January 26, 2018 to holders of record on December 29, 2017. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2018, to stockholders of record on December 29, 2017.
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Stryker Corporation ( SYK ) has declared a quarterly dividend of $0.47 per share payable on January 31, 2018 to shareholders of record at the close of business on December 29, 2017, representing an increase of approximately 11% versus the prior year and the previous quarter. Agree Realty Corporation ( ADC ) has authorized, and the Company has declared, a quarterly cash dividend of $0.520 per common share, an increase of 3.0% over the Company's previous quarterly dividend. VIDEO: Daily Dividend Report: SYK, ADC, MO, DHR, DE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stryker Corporation ( SYK ) has declared a quarterly dividend of $0.47 per share payable on January 31, 2018 to shareholders of record at the close of business on December 29, 2017, representing an increase of approximately 11% versus the prior year and the previous quarter. Agree Realty Corporation ( ADC ) has authorized, and the Company has declared, a quarterly cash dividend of $0.520 per common share, an increase of 3.0% over the Company's previous quarterly dividend. Altria Group ( MO ) declared a regular quarterly dividend of $0.66 per common share, payable on January 10, 2018, to shareholders of record as of December 21, 2017.
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Stryker Corporation ( SYK ) has declared a quarterly dividend of $0.47 per share payable on January 31, 2018 to shareholders of record at the close of business on December 29, 2017, representing an increase of approximately 11% versus the prior year and the previous quarter. Altria Group ( MO ) declared a regular quarterly dividend of $0.66 per common share, payable on January 10, 2018, to shareholders of record as of December 21, 2017. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2018, to stockholders of record on December 29, 2017.
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722185.0
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2017-12-05 00:00:00 UTC
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Deere (DE) Hits 52-Week High: What's Driving the Stock?
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DE
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https://www.nasdaq.com/articles/deere-de-hits-52-week-high%3A-whats-driving-the-stock-2017-12-05
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Shares of Deere & CompanyDE scaled a fresh 52-week high of $152.68 on Dec 4, eventually closing lower at $150.97. The upswing was driven by the news of closure of the Wirtgen acquisition.
The company has a market cap of $48.51 billion. In the last three months, its average volume of shares traded has been approximately 2.37M. Further, Deere surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 19.52%.
Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's recent strong order activity, acquisition of Wirtgen Group and promising U.S. GDP growth.
Further, Deere has an impressive VGM Score of A. In this V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score eliminates the negative aspects of stocks and selects winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Our research shows that stocks with Style Scores of A or B, when combined with a Zacks Rank #1, 2 (Buy) or 3 (Hold), offer the best investment opportunities.
What Led to the 52-week High?
A look at Deere's price performance reveals that its shares have been on an uptrend since reporting third-quarter results in mid-August. Notably, the stock has gained 27.7% since then, outperforming the industry 's growth of 25.5%. Its upbeat fourth-quarter results announced on Nov 22 further fueled the share price appreciation. Deere had hit a 52-week high of $148.83 on Nov 27 on the back of the strong fourth-quarter fiscal 2017 results and upbeat fiscal 2018 outlook. The company's earnings in fourth-quarter fiscal 2017 surged around 74% year over year to $1.57. Net sales of equipment operations also climbed 26% year over year.
For fiscal 2018, Deere guides total equipment sales to increase about 22% and net sales to rise about 19% year over year from fiscal 2017. Net income is likely to be about $2.6 billion. Segment wise, Agriculture and Turf is projected to witness 9% increase in sales in fiscal 2018. Sales for Construction & Forestry segment is projected to be up about 69% (or 15% excluding Wirtgen contribution). Net income from Financial Services is anticipated at $515 million for fiscal 2018.
Deere's recent announcement that it has closed the much-awaited acquisition of Germany-based Wirtgen, the world's leading road-construction equipment maker, triggered the new 52-week high on Dec 4. The buyout of Germany-based Wirtgen will aid Deere's North America-centric construction business expand to a global scale and also catapult it to the position of an industry leader in global road construction. This is touted to be its largest deal ever and expected to immediately boost earnings.
Deere makes equipment for part of the road-building process - loaders and dump trucks to load rocks into crushers from quarries, earthmoving tools at construction sites, as well as dozers and motor graders that help grade roads. Wirtgen's products are complementary to Deere's portfolio and the combined business will benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations.
The acquisition aligns with Deere's long-term strategy to expand in both agriculture and construction - the company's two global growth businesses. With this acquisition Deere plans to capitalize on the expected increase in infrastructure if President Trump's plans of big spending in infrastructure are implemented.
Despite a weak agricultural sector continues Deere has delivered improved margin performance thanks to cost cutting actions. Replacement demand due to an aging stock will sustain demand in the Agriculture and Turf segment. The Construction and Forestry segment will benefit from positive conditions in residential and non-residential markets in the United States as well as an improved oil and gas sector. Further, rising investment in infrastructure will spur growth. The Wirtgen acquisition will add about 54% to the sales for the segment.
Going forward, the company will continue to gain from disciplined cost management and continued investment in innovative technology and solutions. In the long term, the company is likely to gain from favorable trends, supported by increasing population and rising living standards.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
Upward Estimate Revisions
Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Estimates for Deere have moved up over the past 30 days, reflecting analysts' bullish sentiments. The earnings estimate for fiscal 2018 has gone up 14%, while that of fiscal 2019 moved up 20%.
The above-mentioned tailwinds raised investors' optimism on the stock and are anticipated to boost the company's share price in the days ahead.
Other Stocks to Consider
Other top-ranked stocks worth considering in the same sector are Caterpillar, Inc. CAT , Terex Corporation TEX and The Manitowoc Company, Inc. MTW . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar generated an average positive earnings surprise of 53.06% in the past four quarters. The company's shares have surged 52.6%, year to date.
Terex has an average positive earnings surprise of 135.92% in the trailing four quarters. Its share price has gained 47%, year to date.
Manitowoc has an average positive earnings surprise of 139.10% in the last four quarters. The company's share price has surged 63%, year to date.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's recent announcement that it has closed the much-awaited acquisition of Germany-based Wirtgen, the world's leading road-construction equipment maker, triggered the new 52-week high on Dec 4. Deere makes equipment for part of the road-building process - loaders and dump trucks to load rocks into crushers from quarries, earthmoving tools at construction sites, as well as dozers and motor graders that help grade roads. Wirtgen's products are complementary to Deere's portfolio and the combined business will benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations.
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Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's recent strong order activity, acquisition of Wirtgen Group and promising U.S. GDP growth. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Upward Estimate Revisions Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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For fiscal 2018, Deere guides total equipment sales to increase about 22% and net sales to rise about 19% year over year from fiscal 2017. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Upward Estimate Revisions Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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For fiscal 2018, Deere guides total equipment sales to increase about 22% and net sales to rise about 19% year over year from fiscal 2017. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote Upward Estimate Revisions Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Shares of Deere & CompanyDE scaled a fresh 52-week high of $152.68 on Dec 4, eventually closing lower at $150.97.
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722186.0
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2017-12-05 00:00:00 UTC
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Owens-Illinois (OI) Awarded Multi-Year Contract by Reed's
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https://www.nasdaq.com/articles/owens-illinois-oi-awarded-multi-year-contract-by-reeds-2017-12-05
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Owens-Illinois, Inc.OI recently secured a multi-year contract from Reed's, Inc. REED to supply glass containers. Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed's all-natural craft beverages.
Based in Los Angeles, CA, Reed's develops, manufactures and markets top-selling sodas in natural foods markets. The latest deal with Owens-Illinois will simplify Reed's supply chain and drive significant cost savings. The contract will also help deliver improved package quality with sustainable, high-quality, brand-building glass bottles, and lower Reed's working capital commitment to glass inventory.
In addition to the above, the contract will assist Owens-Illinois to cope with contraction in the beer market and negative impact of hurricanes in North America sales in the fourth quarter. The largest glass-container maker has been battling the persistent decline in mega beer sales by repositioning the enterprise through joint ventures with Constellation Brands and some supply contracts.
Owens-Illinois, Inc. Price
Owens-Illinois, Inc. Price | Owens-Illinois, Inc. Quote
For 2017, Owens-Illinois remains on track to achieve all financial targets, including volume growth, margin, adjusted earnings, and cash flow. Its focus on simplifying the organization and boosting productivity will drive long-term growth.
Moreover, the company continues to successfully execute its strategic initiatives in commercial activities, end-to-end supply chain management and working capital reduction.
Share Price Performance
In the past year, Owens-Illinois has outperformed its industry with respect to price performance. The stock has gained around 34.7%, while the industry recorded growth of 23.3% during the same time frame.
Zacks Rank & Key Picks
Owens-Illinois currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Caterpillar Inc. CAT and Deere & Company DE . Both stocks flaunt a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have been up 49.9%, year to date.
Deere has a long-term earnings growth rate of 8.2%. So far this year, its shares have gained 49.1%.
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Owens-Illinois, Inc. (OI): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed's all-natural craft beverages. The largest glass-container maker has been battling the persistent decline in mega beer sales by repositioning the enterprise through joint ventures with Constellation Brands and some supply contracts. Based in Los Angeles, CA, Reed's develops, manufactures and markets top-selling sodas in natural foods markets.
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The latest deal with Owens-Illinois will simplify Reed's supply chain and drive significant cost savings. Click to get this free report Owens-Illinois, Inc. (OI): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed's all-natural craft beverages.
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Click to get this free report Owens-Illinois, Inc. (OI): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed's all-natural craft beverages. Based in Los Angeles, CA, Reed's develops, manufactures and markets top-selling sodas in natural foods markets.
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The latest deal with Owens-Illinois will simplify Reed's supply chain and drive significant cost savings. Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed's all-natural craft beverages. Based in Los Angeles, CA, Reed's develops, manufactures and markets top-selling sodas in natural foods markets.
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722187.0
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2017-12-04 00:00:00 UTC
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Stock Market News For Dec 04, 2017
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https://www.nasdaq.com/articles/stock-market-news-for-dec-04-2017-2017-12-04
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News related to former U.S national security adviser Michael Flynn raised market uncertainty on Friday, which led the benchmarks to finish in the red. Flynn pleaded guilty to lying to the FBI regarding his interaction with the Russians and promised full cooperation to the investigating team. However, some of Friday's losses were curbed following news that the U.S. Senate Republicans showed signs of passing the tax cut bill. For the week, the Dow and S&P 500 closed in positive territory, while the Nasdaq ended downward.
The Dow Jones Industrial Average (DJIA) decreased 0.2%, to close at 24,231.59. The S&P 500 Index (INX) fell 0.2% to close at 2,642.22. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,847.59, losing 0.4%. A total of 8.2 billion shares were traded on Friday, higher than the last 20-session average of 6.6 billion shares. Advancers outnumbered decliners on the NYSE by a 1.02-to-1 ratio. On Nasdaq, a 1.54-to-1 ratio favored declining issues. The CBOE VIX decreased 2% to close at 11.05.
Flynn Testimony, Tax Cut Bill In Focus
According to ABC News, Trump's former national security adviser Flynn accepted that he lied about his contact with individuals from Russia to the FBI. Flynn later confirmed that he "will fully cooperate" with the investigation team and was ready to testify that Donald Trump "directed him to make contact with the Russians," during last year's U.S. Presidential election. In an updated ABC report, Flynn said that he was asked by Trump to contact the Russians "initially as a way to work together to fight ISIS in Syria."
Following such uncertainty, all the key U.S. indexes fell significantly. However, markets managed to recoup some of Friday's declines folllowing news that U.S. Senate Republicans won a vote 51 to 49 to pass the tax overhaul bill in the Senate.
Energy Sector Rallies Up
Despite the considerable decline in the broader markets, the energy sector managed to close in the green following increase in oil prices . All the major OPEC and non-OPEC oil producing nations decided to extend output controls till the end of next year. Following these developments, WTI crude rose 1.6% to close at $58.36 a barrel.
Increase in oil prices boosted the Energy Select Sector SPDR (XLE) to advance 0.8%, becoming the best performing sector of the S&P 500. One of its key components, Chevron CorporationCVX rose 0.4%. The company has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Weekly Roundup
For the week, the Dow and S&P 500 rose 2.9% and 1.5%, respectively, but the tech-based index Nasdaq fell 0.6%. The Dow posted its best weekly increase since December 2016, while the S&P 500 posted its best weekly rise since this September. Meanwhile, the Nasdaq registered its biggest weekly fall since Sept 8.
During the week, Dow breached a fresh all time high to surge past the psychological 24,000 milestone following rising optimism about the prospects of tax reforms after Senator McCain promised his support for the tax cut Bill.
Further, Jerome Powell's comments that he would follow Yellen's path in terms of monetary policies also boosted investor sentiment. Also, key economic data like GDP registered highest growth rate since 2014, while consumer confidence hits a 17-year high. However, Flynn-related report on Friday raised market uncertainty and restricted some of the week's gains.
Stocks That Made Headlines
ExxonMobil to Merge Refining & Marketing Divisions
ExxonMobil CorporationXOM plans to merge its two separate business units into ExxonMobil Fuels & Lubricants Company. ( Read More )
Deere Reinforces Construction Business with Wirtgen Buy
Deere & CompanyDE has concluded the previously announced acquisition of world's leading road-construction equipment maker, Wirtgen. ( Read More )
ARRIS Closes Ruckus Wireless Buyout From Broadcom
ARRIS International plcARRS has recently completed the previously announced acquisition of Ruckus Wireless and ICX Switch Business from Broadcom. ( Read More )
Zacks' Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
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ARRIS International PLC (ARRS): Free Stock Analysis Report
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Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flynn later confirmed that he "will fully cooperate" with the investigation team and was ready to testify that Donald Trump "directed him to make contact with the Russians," during last year's U.S. Presidential election. Flynn pleaded guilty to lying to the FBI regarding his interaction with the Russians and promised full cooperation to the investigating team. For the week, the Dow and S&P 500 closed in positive territory, while the Nasdaq ended downward.
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Click to get this free report ARRIS International PLC (ARRS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Flynn pleaded guilty to lying to the FBI regarding his interaction with the Russians and promised full cooperation to the investigating team. For the week, the Dow and S&P 500 closed in positive territory, while the Nasdaq ended downward.
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Energy Sector Rallies Up Despite the considerable decline in the broader markets, the energy sector managed to close in the green following increase in oil prices . Weekly Roundup For the week, the Dow and S&P 500 rose 2.9% and 1.5%, respectively, but the tech-based index Nasdaq fell 0.6%. Click to get this free report ARRIS International PLC (ARRS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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For the week, the Dow and S&P 500 closed in positive territory, while the Nasdaq ended downward. Weekly Roundup For the week, the Dow and S&P 500 rose 2.9% and 1.5%, respectively, but the tech-based index Nasdaq fell 0.6%. Flynn pleaded guilty to lying to the FBI regarding his interaction with the Russians and promised full cooperation to the investigating team.
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2017-12-04 00:00:00 UTC
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The Zacks Analyst Blog Highlights: JPMorgan, Deere, VMware, Principal Financial and Fortive
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For Immediate Release
Chicago, IL - Dec 4, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JPMorgan JPM , DeereDE , VMwareVMW , Principal FinancialPFG and FortiveFTV .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
Top Stock Reports for JPMorgan, Deere & VMware
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan, Deere and VMware. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
JPMorgan 's shares have outperformed the Zacks Major Regional Banks industry over the past six months (up +26.5% vs. +18.1%). This price performance is backed by impressive earnings surprise history, with the company having surpassed expectations in all the trailing four quarters.
The Zacks analyst likes the bank's efforts to control expenses. Combined with the improved rate scenario and rising loan demand, these initiatives should continue to benefit JPMorgan's financials. Given its solid liquidity position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.
However, the company faces persistent fee income growth challenges, mainly due to slowdown in trading activities and dismal capital markets performance. Also, legal expenses are expected to continue lingering in the near-term.
(You can read the full research report on JPMorgan here >>> ).
Shares of Strong Buy-rated Deere shares have surged +47.7% over the last one year, outperforming the Zacks Farm Equipment industry, which has gained +42.7% over the same period. Deere's top and bottom lines witnessed year-over-year growth in fourth-quarter fiscal 2017, beating expectations on both counts.
Deere projects total equipment sales to climb nearly 38% year over year in first-quarter fiscal 2018 and 22% in fiscal 2018 compared with the year-ago periods. The Zacks analyst likes Deere's disciplined cost management and continued investment in innovative technology and solutions.
Higher housing starts in the United States and an improving oil and gas sector bode well for the company. Recovery in the dairy and livestock sectors will drive growth in the EU28 region. Further, Deere's acquisition of Blue River Technology and the pending Wirtgen acquisition remain tailwinds.
(You can read the full research report on Deere here >>> ).
VMware 's shares have gained +52.6% year to date, outperforming the Zacks Software industry which is up +36.1% over the same period. VMware's strong third-quarter fiscal 2018 results can be attributed to robust performance of its product offerings like NSX, vSphere and vSAN.
The Zacks analyst thinks expanding product portfolio, partnerships with the likes of Intel, IBM, Amazon, Samsung, Fujitsu, Pivotal, Alphabet, and Microsoft along with continuing enterprise deal wins will drive results in the rest of fiscal 2018. Moreover, aggressive share repurchase will support bottom-line. However, several of the growth engines that the company is relying on could take longer to yield results.
Heavy spending on R&D may weigh on its margins in the near future. Moreover, intensifying competition from Microsoft and Citrix Systems remains a major headwind in the near term.
(You can read the full research report on VMware here >>> ).
Other noteworthy reports we are featuring today include Principal Financial and Fortive.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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J P Morgan Chase & Co (JPM): Free Stock Analysis Report
Vmware, Inc. (VMW): Free Stock Analysis Report
Principal Financial Group Inc (PFG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Fortive Corporation (FTV): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks analyst thinks expanding product portfolio, partnerships with the likes of Intel, IBM, Amazon, Samsung, Fujitsu, Pivotal, Alphabet, and Microsoft along with continuing enterprise deal wins will drive results in the rest of fiscal 2018. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. For Immediate Release Chicago, IL - Dec 4, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog.
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Here are highlights from Friday's Analyst Blog: Top Stock Reports for JPMorgan, Deere & VMware The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan, Deere and VMware. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Principal Financial Group Inc (PFG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Fortive Corporation (FTV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Friday's Analyst Blog: Top Stock Reports for JPMorgan, Deere & VMware The Zacks Research Daily presents the best research output of our analyst team. About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Principal Financial Group Inc (PFG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Fortive Corporation (FTV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including JPMorgan, Deere and VMware. For Immediate Release Chicago, IL - Dec 4, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Stocks recently featured in the blog include JPMorgan JPM , DeereDE , VMwareVMW , Principal FinancialPFG and FortiveFTV .
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722189.0
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2017-12-04 00:00:00 UTC
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Deere (DE) Reinforces Construction Business with Wirtgen Buy
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https://www.nasdaq.com/articles/deere-de-reinforces-construction-business-with-wirtgen-buy-2017-12-04
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Deere & CompanyDE , the world's largest farm equipment manufacturer, has concluded the previously announced acquisition of world's leading road-construction equipment maker, Wirtgen, for 4.6 billion euros ($5.2 billion) in cash and debt. The buyout of Germany-based Wirtgen will aid Deere's North America-centric construction business expand to a global scale and also catapult it to the position of an industry leader in global road construction. This is touted to be its largest deal ever and expected to immediately boost earnings.
Deere had announced its intent to acquire Wirtgen in June this year. Since then the stock has gained 20.3%, outperforming the industry 's growth of 19.0%.
Enhances Product Portfolio
Wirtgen's machines are used across the road construction sector from milling to processing, mixing, paving, compaction and rehabilitation. The company sells its machines under five premium brands across more than 100 countries through a large network of company-owned and independent dealers. It employs around 8,200 people. Deere plans to retain Wirtgen's brands, management, manufacturing footprint, employees, and distribution network.
Deere makes equipment for part of the road-building process - loaders and dump trucks to load rocks into crushers from quarries, earthmoving tools at construction sites, as well as dozers and motor graders that help grade roads. Wirtgen's products are complementary to Deere's portfolio and the combined business will benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations.
The acquisition aligns with Deere's long-term strategy to expand in both agriculture and construction - the company's two global growth businesses.
Why Road Construction?
Expansion in road construction is a better choice given that spending on road construction and transportation projects has grown at a faster rate than the overall construction industry. Additionally, it also tends to be less cyclical. Further, there is long-term improvement potential as infrastructure development remains a priority globally with repair and replacement of roads and highways always commanding utmost importance.
Deere Poised Well for the Future
Despite weak global agricultural sector, the company benefited from the adept execution of its operating plans and disciplined cost management as well as the impact of a broad product portfolio. The company reported earnings per share of $6.68 in fiscal 2017, 38.9% higher than the year-ago figure.
Its agriculture and turf business contributed about 68% to total revenues in the fiscal 2017, while construction and forestry accounted for 19% of revenues. Deere projects Agriculture and Turf equipment sales to increase about 9% in fiscal 2018, including a positive currency-translation effect of about 2%. The company foresees global sales for Construction & Forestry equipment to be up about 69% for fiscal 2018, including a positive currency-translation effect of about 1%. The Wirtgen acquisition is likely to add about 54% to the sales for the segment.
The outlook is based on moderate global economic growth, including higher housing starts in the United States, and an improved oil and gas sector. In forestry, global industry sales are projected to be flat to up 5% on the back of improved lumber prices in North America.
The company will continue to gain from its disciplined cost management and continued investment in innovative technology and solutions. Higher housing starts in the United States and an improving oil and gas sector bode well for the company. Recovery in the dairy and livestock sectors will drive growth in the Europe. In the long term, the company is likely to gain from favorable trends, supported by increasing population and rising living standards.
Deere currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the same sector are Caterpillar, Inc. CAT , Terex Corporation TEX and The Manitowoc Company, Inc. MTW . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar generated an average positive earnings surprise of 53.06% in the past four quarters. The company's shares have surged 52.6%, year to date.
Terex has an average positive earnings surprise of 135.92% in the trailing four quarters. Its share price has gained 45.3% year to date.
Manitowoc has an average positive earnings surprise of 139.10% in the last four quarters. The company's share price has surged 63%, year to date.
Zacks' Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere makes equipment for part of the road-building process - loaders and dump trucks to load rocks into crushers from quarries, earthmoving tools at construction sites, as well as dozers and motor graders that help grade roads. Wirtgen's products are complementary to Deere's portfolio and the combined business will benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations. Deere Poised Well for the Future Despite weak global agricultural sector, the company benefited from the adept execution of its operating plans and disciplined cost management as well as the impact of a broad product portfolio.
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Deere projects Agriculture and Turf equipment sales to increase about 9% in fiscal 2018, including a positive currency-translation effect of about 2%. The outlook is based on moderate global economic growth, including higher housing starts in the United States, and an improved oil and gas sector. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The buyout of Germany-based Wirtgen will aid Deere's North America-centric construction business expand to a global scale and also catapult it to the position of an industry leader in global road construction. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The acquisition aligns with Deere's long-term strategy to expand in both agriculture and construction - the company's two global growth businesses. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. Deere & CompanyDE , the world's largest farm equipment manufacturer, has concluded the previously announced acquisition of world's leading road-construction equipment maker, Wirtgen, for 4.6 billion euros ($5.2 billion) in cash and debt.
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2017-12-04 00:00:00 UTC
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Zacks Industry Outlook Highlights: Caterpillar, Stanley Black & Decker, Deere, Roper Technologies and Rockwell Automation
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-caterpillar-stanley-black-decker-deere-roper
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For Immediate Release
Chicago, IL - Dec 4, 2017 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar, Inc.CAT , Stanley Black & Decker, Inc.SWK , Deere & CompanyDE , Roper Technologies, Inc.ROP and Rockwell Automation Inc.ROK .
Industry: Industrial Machinery
Link: https://www.zacks.com/commentary/139065/industrial-machinery-stock-outlook---december-2017
The cyclical nature of industrial machinery demand is benefiting from the synchronized global growth backdrop. The International Monetary Fund (IMF) recently raised its outlook for the global economy, with the financial institution anticipating the world economy to grow 3.6% in 2017. It expects 2.2% rise in advanced economies and 4.6% growth in emerging nations. Global output is projected to increase 3.7% in 2018, including 2% growth for advanced nations and 4.9% improvement for emerging countries.
We believe that continuous advancements in technologies applied in agriculture and mining industries keep demand strong for farming and mining machinery. Moreover, healthy growth in demand for packaged foods and beverages across nations, especially in emerging countries, are significantly increasing the use of highly sophisticated food processing and packaging equipment. Further, need for better infrastructure and residential and non-residential spaces require heavy construction machineries.
Machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. The sector has performed well, yielding a solid return of 18.3% year to date. This outpaces growth of 16.9% recorded by the S&P 500 and roughly 13.2% by the NYSE Composite.
Among the S&P 500 members, the top five industrial machinery gainers since the beginning of the year include Caterpillar, Inc., Stanley Black & Decker, Inc., Deere & Company, Roper Technologies, Inc. and Rockwell Automation Inc.
Industrial Machinery: Description
Industrial production is one of the leading economic indicators for industrial machinery stocks. It measures the level of output of manufacturing, mining and utilities sectors in a country. A brief discussion on the machinery industry in different nations is given below.
The United States: The country's industrial production increased2.9% year over year in October driven by impressive growth in mining, manufacturing and utilities output. In September, industrial production increased 1.6% year over year.
In addition, a few indicators point toward healthy operating conditions in the industry. Per the U.S. Census Bureau report,new orders for U.S.-manufactured machinery increased 6.4% in the first nine months of 2017 led by growth in orders for construction, mining, industrial, material handling and other machineries.
Also, the job market showed strength, with the recent data indicating 261,000 new job additions in October. Average of new job additions in the last three months was 162,000 (accounting for hurricane affects). The unemployment rate dropped 10 basis points (bps) to 4.1%. Also, the country's GDP has advanced 3% in the July-September quarter.
We believe that implementation of the Trump government's growth policies, especially the proposed $1 trillion spending on infrastructure improvement, will be a boon for industrial machinery stocks. Other tailwinds are the strengthening housing and commercial construction markets in the country. To continue supporting the growing economy, the Federal Reserve has hiked its interest rates twice this year while another one might be expected in December.
The IMF projects the U.S. economy to grow 2.2% in 2017 and 2.3% in 2018. These estimates represent increase of 10 bps from the previous projection for 2017 and 20 bps for 2018.
Japan: The country's economy is struggling with internal issues including low investment levels, an aging population and huge public debt.Also, the consumption level has failed to revive to a satisfactory standard since it suffered from a 3% rise in national sales tax in April 2014.
However, strengthening exports driven by rise in automobile and electronic shipments have supported the country's annualized GDP growth of 1.4% in the third quarter compared with the previous quarter. In addition, we believe that initiatives to improve wages are likely to spur domestic demand as well as steps to increase investments domestically might work in the country's favor in the quarters ahead.
According to the report from Japan's Cabinet Office, core machinery orders (an indicator of capital spending by companies in the next six to nine months)increased 4.7% in third-quarter 2017. However, the same is predicted to be quite different in the fourth quarter, with total machinery orders likely to decline 1.9%. Core orders are expected to fall 3.5%, orders from manufacturing clients will likely drop 9.4% and that from government clients might decline 3.3%.
The IMF increased its growth projection for the country by 20 bps to 1.5% for 2017 and by 10 bps to 0.7% for 2018.
China: China's GDP grew 6.8% from the year-earlier period in the third quarter. However, this improvement was slightly below 6.9% registered in the previous quarter as a rise in retail sales and higher exports were partially offset by weak expansion in infrastructure investments.
The country's industrial production improved 6.6% year over year in September on the back of improvement in manufacturing and utilities sectors, offset by weakness in the mining sector. Industrial production in October grew 6.2%.
For 2017, the Chinese government anticipates economy to grow roughly 6.5%. We believe that implementation of the government's plan to spend more than $2 trillion for the development of infrastructure and transportation by 2020 will boost the economy and spur demand for industrial machinery.
The IMF projects the Chinese economy to grow 6.8% in 2017 and 6.5% in 2018, up roughly 10 bps from the respective previous estimates.
India: The country is currently witnessing the after-effects of some major reforms -demonetization and goods and services tax - implemented in the trailing 12 months. These economic decisions along with other strategies to make the country a prime manufacturing hub for all nations across the world are expected to drive its economic growth going forward.
A favorable domestic job market, low interest rates allowing easy accessibility to cheap loans, infrastructure investments, healthy export demand and better monsoon conditions are additional factors that can make the country a favorable investment destination.
The country's industrial production decelerated to 3.8% in September 2017, having expanded 4.5% in the previous month. Production suffered from weakness in mining and electricity outputs. In the first half of fiscal 2017 (ended September), industrial production expanded 2.5% year over year.
According to the IMF, the country is projected to grow 6.7% in 2017 and 7.4% in 2018, down roughly 50 bps and 30 bps from the respective previous estimates.
Brazil: One of the major road blocks for the Brazilian economy are the political uncertainties which have gripped the nation, somewhat jeopardizing its growth opportunities. Corruption charges against its president are believed to be one of the reasons behind the country's poor investment grade ratings. Moreover, low private investments, inadequate infrastructure and still a high unemployment rate of 12.4% are other major hurdles.
Partially negating the impact of these aspects, growth in export demand and efforts to implement a new pension reform targeting the curbing of public debt are currently strengthening hopes of a turnaround in the Brazilian economy. Also, falling inflation have prompted the countries' Central Bank to ease interest rates. Notably, the interest rate has been lowered by 75 bps in October, this being its ninth consecutive rate cut since October 2016.
In addition, the country's industrial production has been encouraging since the beginning of the year. Per the latest data, industrial production in September grew 2.6% from the year-ago comparable month.
The IMF expects the country's output to grow 0.7% in 2017, reflecting a 40 bps increase from the previous forecast. Also, growth projection for 2018 has been increased by 20 bps to 1.5%.
Eurozone: The region, amidst all the political uncertainties, is showing slight improvement in export demand and labor markets. The region's GDP has improved 2.5% year over year in third-quarter 2017 while industrial production has improved 3.3% year over year in September. The unemployment rate at September end was 8.9% versus 9% at the end of the previous month.
The region's GDP when compared with the previous quarter inched up 0.6% versus 0.7% recorded in the second quarter. Industrial production, on a month-on-month basis, fell 0.6% in September.
The IMF increased output growth estimates by 20 bps both for 2017 and 2018 to 2.1% and 1.9%, respectively.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
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Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Partially negating the impact of these aspects, growth in export demand and efforts to implement a new pension reform targeting the curbing of public debt are currently strengthening hopes of a turnaround in the Brazilian economy. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. For Immediate Release Chicago, IL - Dec 4, 2017 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar, Inc.CAT , Stanley Black & Decker, Inc.SWK , Deere & CompanyDE , Roper Technologies, Inc.ROP and Rockwell Automation Inc.ROK .
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For Immediate Release Chicago, IL - Dec 4, 2017 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar, Inc.CAT , Stanley Black & Decker, Inc.SWK , Deere & CompanyDE , Roper Technologies, Inc.ROP and Rockwell Automation Inc.ROK . Among the S&P 500 members, the top five industrial machinery gainers since the beginning of the year include Caterpillar, Inc., Stanley Black & Decker, Inc., Deere & Company, Roper Technologies, Inc. and Rockwell Automation Inc. Industrial Machinery: Description Industrial production is one of the leading economic indicators for industrial machinery stocks. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Among the S&P 500 members, the top five industrial machinery gainers since the beginning of the year include Caterpillar, Inc., Stanley Black & Decker, Inc., Deere & Company, Roper Technologies, Inc. and Rockwell Automation Inc. Industrial Machinery: Description Industrial production is one of the leading economic indicators for industrial machinery stocks. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Dec 4, 2017 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar, Inc.CAT , Stanley Black & Decker, Inc.SWK , Deere & CompanyDE , Roper Technologies, Inc.ROP and Rockwell Automation Inc.ROK .
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Among the S&P 500 members, the top five industrial machinery gainers since the beginning of the year include Caterpillar, Inc., Stanley Black & Decker, Inc., Deere & Company, Roper Technologies, Inc. and Rockwell Automation Inc. Industrial Machinery: Description Industrial production is one of the leading economic indicators for industrial machinery stocks. For Immediate Release Chicago, IL - Dec 4, 2017 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar, Inc.CAT , Stanley Black & Decker, Inc.SWK , Deere & CompanyDE , Roper Technologies, Inc.ROP and Rockwell Automation Inc.ROK . Industry: Industrial Machinery Link: https://www.zacks.com/commentary/139065/industrial-machinery-stock-outlook---december-2017 The cyclical nature of industrial machinery demand is benefiting from the synchronized global growth backdrop.
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Deere, CenturyLink, Mosaic, Sociedad Quimica y Minera de Chile S.A. and Intrepid Potash highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL - Dec 4, 2017 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and CenturyLink, Inc.CTL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Mosaic CompanyMOS , Sociedad Quimica y Minera de Chile S.A.SQM and Intrepid Potash, Inc.IPI .
Here is a synopsis of all five stocks:
Bull of the Day :
Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally. Luckily, there is plenty of strength in other core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company .
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management's commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company has outperformed its industry peers over the past year, and another strong quarter has sent the stock soaring to a new 52-week high. Positive estimate revisions have been pouring in, and DE is currently sporting a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its fourth-quarter fiscal 2017 results on Nov. 22. The company posted earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.46 and surging about 74% year-over-year. Total equipment revenues of $7.09 billion were up 26% from the year-ago period and ahead of our consensus estimate of $6.91 billion.
Including financial services, total net sales came in at $8.02 billion, which marked year-over-year growth of 23%. Geographically speaking, Deere witnessed sales growth of 23% in the United States and Canada, while sales in the rest of the world climbed 30%. Looking ahead, this international growth should continue to be aided by a recovery in the dairy and livestock markets throughout Europe.
Segment wise, revenues in the Agriculture & Turf unit were up 22% to $5.44 billion. Operating profit at this segment climbed 57% year-over-year to reach $584 million. Construction & Forestry sales were up about 37% to $1.66 billion. This unit contributed about $85 million to Deere's total operating profit, an improvement from the $17 million loss reported in the year-ago period.
Perhaps most impressively, Deere reported cash and cash equivalents of $9.33 billion at the end of fiscal 2017, up about 115% from the $4.34 billion held at the end of fiscal 2016. The company will spend about $5 billion in cash to acquire Wirten Group in a deal that is expected to close this month.
Wirtgen is expected to add about 12% to Deere's sales for fiscal 2018 and about 6% for the fiscal first quarter. After accounting for acquisition costs, Wirtgen is expected to contribute about $75 million in operating profit and $25 million in net income in fiscal 2018.
Bear of the Day :
As new competition and changing consumer trends continue to mess with the status quo, the telecommunications industry has been forced to adapt. Investment and consolidation are high, and shifting business models are aplenty. Unfortunately, some legacy names-such as CenturyLink, Inc. - have struggled to compete.
CenturyLink operates as a local phone carrier and internet service provider throughout the United States. The company's services are currently available in 22 states. In November, CenturyLink completed its merger with Level 3 Communications, underscoring its attempt to focus on business customers.
CenturyLink has attempted to shift with the times, but its success has been limited. Management has now missed earnings estimates in four consecutive quarters, and the stock is down about 40% on the year. CenturyLink is currently sporting a Zacks Rank #5 (Strong Sell).
Latest Earnings Report
CenturyLink reported its third-quarter fiscal 2017 results on Nov. 8. The company posted adjusted earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.45. Net income for the quarter was $92 million, down from the $152 posted in the year-ago period. Total revenues of $4.034 billion were down about 8% year-over-year and below our consensus estimate of $4.061 billion.
CenturyLink faced challenges in all of its revenue streams. Strategic revenues were down about 7%, while Legacy revenues slipped 10%. Its Other Services revenues were flat on the year, while Data Integration revenues plummeted 18%-making this the company's worst performing unit.
Unfortunately, the company's financial positioned has simply worsened. Operating margin in the quarter was 12.1%, down from 13.5% in the prior-year quarter. Adjusted free cash flow in the quarter was $109 million, down from $186 million last year. The company now has just $160 million in cash and cash equivalents, and its debt pile has grown to nearly $25 billion.
Total access lines at the end of the quarter were down 6.5%, while high-speed broadband customer count slipped about 3.1% year-over-year.
What's worse, Enterprise segment revenues were down 11.2% in the quarter. CenturyLink intends for the Level 3 acquisition to help it establish dominance in the enterprise telecom field, but it is already starting from a weak position on that end.
Additional Content:
Fertilizer Industry Gains Stability: 3 Stocks to Buy
The fertilizer industry is showing signs of stability of late, taking succor from improved pricing and demand dynamics for certain major crop nutrients and a firming farm economy.
While still-weak agricultural commodity prices remain a roadblock, strong usage in major consumer markets is driving demand for primary crop nutrients. Needless to say, the ever-growing world population and the concomitant need to beef up food supply to feed more mouths remains a prime catalyst for fertilizer demand growth.
The Zacks Fertilizers industry has outperformed the broader market over the past three months. While the industry has gained roughly 12.1%, the S&P 500 has returned around 6.3%.
Let's do a quick health check of the fertilizer industry by delving deeper into certain key factors.
Potash Market Showing Strength
The potash market has stabilized this year from the 2016 lows. Potash prices have recovered this year after feeling gravity's pull in 2016, supported by improving demand and tighter supply conditions. Most producers of this major nutrient, including Potash Corp. of Saskatchewan and Agrium witnessed a spike in prices in the third quarter that drove their potash margins.
Demand for potash also has been strong in key markets. Potash Corp., a major producer of the nutrient, saw healthy demand for potash in the third quarter and expects consistent customer engagement through the balance of 2017, supported by healthy consumption trends with contracts with both China and India in place. The company envisions 2017 to be a record year for potash demand and expects global demand in the band of 62 million to 65 million tons.
Potash Corp. sees strong consumption in China driven by a shift to more potassium-intensive crops like vegetables and fruits. The demand environment also remains healthy in Brazil, another important market, driven by higher crop acreage and application rates. Strong affordability and the need to replenish nutrients are also expected to support fertilizer demand in North America.
Moreover, the government of India's move to cut the Goods and Services Tax (GST) rate on fertilizers from 12% to 5% is a welcome news for famers in that country. It also augurs well for potash demand in India, one of the world's top buyers of the nutrient.
According to Agrium, potash market is expected to remain tight through the rest of 2017. As such, higher demand from major consumers coupled with tight supply should further drive up potash prices.
A Rebound in Nitrogen
Another positive is the recent rebound in the nitrogen space. The nitrogen market is seeing improving demand and pricing fundamentals. According to CF Industries, a major producer, the third quarter witnessed a rapid increase in the global price of urea from second quarter, which was driven by considerably lower Chinese exports and strong global demand (especially in India and Brazil). The company expects consistent global nitrogen demand growth moving ahead.
Moreover, Agrium, in its third-quarter call, said that nitrogen prices have witnessed sharp increase (of more than 50%) since the lows seen in July, buoyed by low level of Chinese urea production and solid import demand from India. Higher domestic coal prices coupled with increased focus on reducing pollution has led to a reduction in Chinese urea production.
Agrium also sees positive supply-demand fundamentals for nitrogen in the medium term. Continued strong demand and tighter market conditions augur well for nitrogen prices in the fourth quarter.
Phosphate Market a Mixed Bag
Excess capacity continues to hurt prices of phosphate as witnessed in the first three quarters of 2017. Phosphate markets are expected to remain oversupplied through this year (with new capacity reportedly coming from Morocco and Saudi Arabia), thereby putting pressure on prices.
However, demand environment for the nutrient remains favorable. The Mosaic Company, one of the biggest producers of phosphate, noted in its September quarterearnings callthat demand remains strong as farmers are looking to replace nutrients from the soil in most of the major regions globally. The company also envisions demand growth to absorb new supply additions.
A Stabilizing Farm Economy
U.S. farm income is expected to tick up this year after three straight years of decline due to low commodity prices. Per the U.S. Department of Agriculture's (USDA) recently released November 2017 forecast, net U.S. farm income is expected to go up 2.7% to $63.2 billion in 2017.
The upturn in profits is likely be driven by higher cash receipts from the sale of crop inventories. The USDA expects cash receipts to go up 2.4% to $365.1 billion in 2017.
While the USDA's profit forecast for this year is still a far cry from the record $123.8 billion achieved in 2013, it gives signs of stability in the farm economy and suggests that the sector may have finally hit the bottom. Higher anticipated farm income is expected to positively influence farmers' nutrient-purchasing decisions.
Crop Pricing Remains a Concern
The prevailing softness in agricultural commodity pricing remains a concern for fertilizer and agricultural chemicals companies. Prices of major crops (such as corn and soybeans) remain at their multi-year lows as markets remain awash with grains. An expected bumper corn and soybean harvest is likely to put a cap on crop prices in 2017.
The USDA's harvest outlook indicates another bumper year of production. The USDA, in its November report, raised its corn harvest forecast for the 2017/18 crop year. It now sees corn production to be 14.578 billion bushels, up 298 million from its October forecast, on record yield. The USDA also predicts record soybean production of 4.425 billion bushels. This is expected to aggravate the grain glut and restrict crop prices.
3 Fertilizer Stocks to Bear Fruit
Despite a few lingering headwinds, the overall fundamentals for the fertilizer industry are improving on the back of improved demand scenario for nutrients and an upswing in the farm economy. Moreover, the constant need of farmers to nourish their crops, replenish nutrients in the soil following a harvest and boost yields to feed a growing world support the bullish case for fertilizers.
Below we highlight three fertilizer stocks, armed with a solid Zacks Rank, that are worth considering for investment in the prevailing operating environment.
The Mosaic Company
Headquartered in Plymouth, MN, Mosaic is a solid choice armed with a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The company has an expected earnings growth of 14.4% for 2017. It also has a long-term expected earnings per share growth rate of 9.5%.
The Zacks Consensus Estimate for 2017 and 2018 for the company's earnings has also increased by around 27.8% and 11.1%, respectively, over the past month. Mosaic also delivered positive earnings surprise of 72% in the last reported quarter.
Sociedad Quimica y Minera de Chile S.A.
Santiago, Chile-based Sociedad Quimica is another attractive pick with a Zacks Rank #2 (Buy). The company has an expected earnings growth of 56.9% for 2017. It also has a long-term expected earnings per share growth rate of 32.5%. The stock has also gained 89.6% year to date, significantly outperforming the Zacks Fertilizers industry's gain of 11% over the same period.
Annual estimates for Sociedad Quimica have also moved north over the past 30 days, reflecting analysts' confidence in the stock. Over this period, the Zacks Consensus Estimate for 2017 and 2018 for the company's earnings has increased by around 3.1% and 6.5%, respectively.
Intrepid Potash, Inc.
Our next pick in the space is Denver, CO-based Intrepid Potash, carrying a Zacks Rank #2. The company has an expected earnings growth of 78.7% for 2017. It also delivered positive earnings surprise of 50% in the last reported quarter. Moreover, the stock has gained a solid 83.6% year to date, significantly outperforming the Zacks Fertilizers industry's gain of 11%.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sociedad Quimica y Minera S.A. (SQM): Free Stock Analysis Report
Mosaic Company (The) (MOS): Free Stock Analysis Report
Intrepid Potash, Inc (IPI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
CenturyLink, Inc. (CTL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Mosaic Company, one of the biggest producers of phosphate, noted in its September quarterearnings callthat demand remains strong as farmers are looking to replace nutrients from the soil in most of the major regions globally. For Immediate Release Chicago, IL - Dec 4, 2017 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and CenturyLink, Inc.CTL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Mosaic CompanyMOS , Sociedad Quimica y Minera de Chile S.A.SQM and Intrepid Potash, Inc.IPI .
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In addition, Zacks Equity Research provides analysis on the Mosaic CompanyMOS , Sociedad Quimica y Minera de Chile S.A.SQM and Intrepid Potash, Inc.IPI . Per the U.S. Department of Agriculture's (USDA) recently released November 2017 forecast, net U.S. farm income is expected to go up 2.7% to $63.2 billion in 2017. Click to get this free report Sociedad Quimica y Minera S.A. (SQM): Free Stock Analysis Report Mosaic Company (The) (MOS): Free Stock Analysis Report Intrepid Potash, Inc (IPI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report CenturyLink, Inc. (CTL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Additional Content: Fertilizer Industry Gains Stability: 3 Stocks to Buy The fertilizer industry is showing signs of stability of late, taking succor from improved pricing and demand dynamics for certain major crop nutrients and a firming farm economy. The company envisions 2017 to be a record year for potash demand and expects global demand in the band of 62 million to 65 million tons. Click to get this free report Sociedad Quimica y Minera S.A. (SQM): Free Stock Analysis Report Mosaic Company (The) (MOS): Free Stock Analysis Report Intrepid Potash, Inc (IPI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report CenturyLink, Inc. (CTL): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - Dec 4, 2017 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and CenturyLink, Inc.CTL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Mosaic CompanyMOS , Sociedad Quimica y Minera de Chile S.A.SQM and Intrepid Potash, Inc.IPI . Here is a synopsis of all five stocks: Bull of the Day : Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally.
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Bull of the Day: Deere & Company (DE)
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https://www.nasdaq.com/articles/bull-day-deere-company-de-2017-12-04
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Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally. Luckily, there is plenty of strength in other core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE).
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management's commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company has outperformed its industry peers over the past year, and another strong quarter has sent the stock soaring to a new 52-week high. Positive estimate revisions have been pouring in, and DE is currently sporting a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its fourth-quarter fiscal 2017 results on Nov. 22. The company posted earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.46 and surging about 74% year-over-year. Total equipment revenues of $7.09 billion were up 26% from the year-ago period and ahead of our consensus estimate of $6.91 billion.
Including financial services, total net sales came in at $8.02 billion, which marked year-over-year growth of 23%. Geographically speaking, Deere witnessed sales growth of 23% in the United States and Canada, while sales in the rest of the world climbed 30%. Looking ahead, this international growth should continue to be aided by a recovery in the dairy and livestock markets throughout Europe.
Segment wise, revenues in the Agriculture & Turf unit were up 22% to $5.44 billion. Operating profit at this segment climbed 57% year-over-year to reach $584 million. Construction & Forestry sales were up about 37% to $1.66 billion. This unit contributed about $85 million to Deere's total operating profit, an improvement from the $17 million loss reported in the year-ago period.
Perhaps most impressively, Deere reported cash and cash equivalents of $9.33 billion at the end of fiscal 2017, up about 115% from the $4.34 billion held at the end of fiscal 2016. The company will spend about $5 billion in cash to acquire Wirten Group in a deal that is expected to close this month.
Wirtgen is expected to add about 12% to Deere's sales for fiscal 2018 and about 6% for the fiscal first quarter. After accounting for acquisition costs, Wirtgen is expected to contribute about $75 million in operating profit and $25 million in net income in fiscal 2018.
Estimate Revisions and Key Stats
As we can see, Deere's strong quarter has inspired a plethora of positive earnings estimate revisions. The key here is that we are seeing 100% agreement among the analysts that are revising their estimates. These analysts are in agreement with the company's upbeat guidance, and we now expect Deere to have another remarkable fiscal year in 2018.
Furthermore, we see some evidence that Deere is currently undervalued, even as its shares sit near their 52-week high. The company's P/E ratio is just 18.97, which compares favorably to its industry's average, as well as the average of the S&P 500. What's more, a P/S ratio of 1.62 is respectable, and the company is generating a staggering $12.06 in cash per share right now.
Deere's 1.60% dividend is not spectacular, but income-loving investors will welcome it. Finally, the stock is sporting an "A" grade for Momentum and could be an interesting pick for momentum investors that love to see stocks surging into new highs.
Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally. Luckily, there is plenty of strength in other core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE). Deere & Company has outperformed its industry peers over the past year, and another strong quarter has sent the stock soaring to a new 52-week high.
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This unit contributed about $85 million to Deere's total operating profit, an improvement from the $17 million loss reported in the year-ago period. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally.
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Luckily, there is plenty of strength in other core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE). Perhaps most impressively, Deere reported cash and cash equivalents of $9.33 billion at the end of fiscal 2017, up about 115% from the $4.34 billion held at the end of fiscal 2016. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Last week's tech selloff underscored the fact that some investors are starting to focus on other areas after the sector's years-long rally. Luckily, there is plenty of strength in other core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE). Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery.
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722193.0
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2017-12-04 00:00:00 UTC
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Stocks Showing Improved Relative Strength: AGCO
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DE
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https://www.nasdaq.com/articles/stocks-showing-improved-relative-strength-agco-2017-12-04
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nan
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AGCO ( AGCO ) saw a positive improvement to its Relative Strength ( RS ) Rating on Monday, with an increase from 64 to 74.
[ibd-display-video id=2368044 width=50 float=left autostart=true] This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the best stocks tend to have an RS Rating north of 80 as they begin their biggest price moves. See if AGCO can continue to rebound and clear that threshold.
Looking For The Best Stocks To Buy And Watch? Start Here
AGCO is trying to complete a cup without handle with a 75.68 entry . See if it can break out in heavy trading.
In terms of revenue and profits, AGCO has posted two quarters of rising earnings growth. Revenue growth has also moved higher during the same period.
The company earns the No. 4 rank among its peers in the Machinery-Farm industry group. Deere & Company ( DE ) is the No. 1-ranked stock within the group.
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2368044 width=50 float=left autostart=true] This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Deere & Company ( DE ) is the No. IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating?
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IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? [ibd-display-video id=2368044 width=50 float=left autostart=true] This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Deere & Company ( DE ) is the No.
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IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? [ibd-display-video id=2368044 width=50 float=left autostart=true] This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Deere & Company ( DE ) is the No.
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[ibd-display-video id=2368044 width=50 float=left autostart=true] This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Deere & Company ( DE ) is the No. IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating?
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8fdc7f23-b590-4852-be61-4d88da7a5bb5
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722194.0
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2017-12-01 00:00:00 UTC
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Donaldson's (DCI) Earnings & Revenues Beat Estimates in Q1
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https://www.nasdaq.com/articles/donaldsons-dci-earnings-revenues-beat-estimates-in-q1-2017-12-01
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Donaldson Company, Inc.DCI reported adjusted earnings per share of 46 cents in first-quarter fiscal 2018, which beat the Zacks Consensus Estimate of 42 cents by 9.5%.
The bottom-line figure was even more impressive compared with the prior-year quarter tally of 38 cents, reflecting an increase of 21.1%. Earnings were driven by strong revenues performance and favorable market conditions, particularly in Industrial Filtration Solutions business.
Inside the Headlines
Donaldson reported total sales of $644.8 million, up 16.6% on a year-over-year basis. Also, revenues came ahead of the Zacks Consensus Estimate of $600 million. Strong performance in both the Engine Products and Industrial Products segments drove record first-quarter revenues. Moreover, currency fluctuations and acquisitions resulted in an increase of 1.7% and 1.6%, respectively, in the year-over-year increase in sales.
Revenues at the Engine Products segment recorded an impressive increase of 24.9% year over year to $442.1 million. Three of the four sub-segments under Engine Products - Off-Road, On Road and Aftermarket - recorded a jump in sales, which led to the overall strong performance. Sales in Aftermarket, On-road and Off-Road business increased by 24.7%, 25.6% and 37%, respectively. However, sales in Aerospace and Defense recorded a decline of 0.5%.
Revenues at the Industrial Product segment were up 1.8% year over year to $202.7 million. Sales in Industrial Filtration Solutions and Special Applications business increased by 6.5% and 4%, respectively. However, sales in Gas Turbine Systems declined by 19.1%.
Donaldson Company, Inc. Price, Consensus and EPS Surprise
Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote
Donaldson's adjusted operating margin expanded 30 basis points (bps) year over year to 14.1%. Additionally, the company's Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") were $108.8 million compared with $103.4 million recorded a year ago.
Liquidity & Cash Flow
Donaldson exited the quarter with cash and equivalents of $349.6 million compared with $262.2 million as on Oct 31, 2016. The company had long-term debt of $631.7 million as on Oct 31, 2017, compared with $537.3 million as on Jul 31, 2017.
Share Repurchase Program
During the fiscal first quarter, the company returned $23.4 million to shareholders through share dividends. Additionally, Donaldson repurchased shares worth $42.6 million, which represents 0.7% of its outstanding shares.
2018 Guidance
Concurrent with the earnings release, the company provided guidance for fiscal 2018. Donaldson currently expects fiscal 2018 GAAP earnings in the range of $1.90-$2.04 per share compared with its earlier projection of $1.79 to $1.93. Based on the current market scenario, the company expects a 10-14% year-over-year increase in full-year sales.
In terms of segments, Donaldson projects Engine Products sales to increase in the range of 13-17% compared with the prior year. Growth in Aftermarket, Off-Road, On-Road as well as Aerospace and Defense sales are expected to act as tailwinds for growth in Engine Products.
Donaldson anticipates Industrial Products sales to increase in the range of 4-8% compared with its earlier guidance of flat to up 4% increase, mirroring strong performance from Industrial Filtration Solutions as well as Special Applications.
Conclusion
Going forward, the company believes that strong sales in almost all businesses, including Aftermarket, Off-Road, On-Road and Industrial Filtration Solutions, will continue to act as solid growth drivers. Favorable market conditions, particularly in its Industrial Filtration Solutions business as well as strong momentum in Engine Products segment, are likely to act as tailwinds.
In addition, going forward, this Zacks Rank #2 (Buy) company's strategic investments in sales-driving initiatives, expanding technology portfolio and strengthening infrastructure bode well. Donaldson is also building an e-Commerce platform, which will enable easier customer engagement. In terms of expansion of core business, the company's programs in Engine air and liquid market enjoy a win rate of over 75% which has the potential to generate minimum half a billion dollars in future revenues.
This apart, improving operational efficiency through relentless efforts remains one of the main focuses of the company. For instance, the company's profitability has benefited significantly from restructuring actions that were implemented in the last 12 months. Going forward, ERP implementation is anticipated to improve inventory management, pricing and processes, adding to Donaldson's strength.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Deere & Company DE , Briggs & Stratton Corporation BGG and Acco Brands Corporation ACCO . While Deere & Company and Briggs & Stratton sport a Zacks Rank #1 (Strong Buy), Acco Brands carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 19.5%.
Briggs & Stratton has outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 8.6%.
Acco Brands has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 81.9%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
Acco Brands Corporation (ACCO): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, going forward, this Zacks Rank #2 (Buy) company's strategic investments in sales-driving initiatives, expanding technology portfolio and strengthening infrastructure bode well. Inside the Headlines Donaldson reported total sales of $644.8 million, up 16.6% on a year-over-year basis. Revenues at the Engine Products segment recorded an impressive increase of 24.9% year over year to $442.1 million.
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Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Donaldson's adjusted operating margin expanded 30 basis points (bps) year over year to 14.1%. Other Stocks to Consider Some other top-ranked stocks from the same space include Deere & Company DE , Briggs & Stratton Corporation BGG and Acco Brands Corporation ACCO . Click to get this free report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Donaldson Company, Inc. Price, Consensus and EPS Surprise Donaldson Company, Inc. Price, Consensus and EPS Surprise | Donaldson Company, Inc. Quote Donaldson's adjusted operating margin expanded 30 basis points (bps) year over year to 14.1%. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Inside the Headlines Donaldson reported total sales of $644.8 million, up 16.6% on a year-over-year basis.
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Revenues at the Engine Products segment recorded an impressive increase of 24.9% year over year to $442.1 million. While Deere & Company and Briggs & Stratton sport a Zacks Rank #1 (Strong Buy), Acco Brands carries a Zacks Rank #2. Inside the Headlines Donaldson reported total sales of $644.8 million, up 16.6% on a year-over-year basis.
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722195.0
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2017-12-01 00:00:00 UTC
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Dover (DOV) Hits 52-Week High: What's Fueling the Stock?
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https://www.nasdaq.com/articles/dover-dov-hits-52-week-high%3A-whats-fueling-the-stock-2017-12-01
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On Nov 30, Dover CorporationDOV scaled a 52-week high of $98.00 during intraday trading, finally closing lower at $97.71.
Investors are optimistic on this Zacks Rank #3 (Hold) company's efforts to streamline business, solid booking and backlog growth, potential opportunities in the fast-growing digital textile printing market and an improving Energy segment.
The stock surged 31.3% in a year, higher than the S&P 500's growth of 20.2%. Dover has also outperformed the industry 's 26.2% gain.
Growth Drivers
Dover continues to simplify portfolio. Earlier, the company had announced that it is searching for sound alternatives to separate its Wellsite business either by a tax-free spin-off, sale or other strategic combination. Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling as well as production industry.
During the third-quarter conference call, the company stated that the Wellsite business is on track to be separated in early 2018. Dover added that the company has recently signed an agreement to sell the consumer and industrial winch business of Warn for $250 million, anticipated to close in the fourth quarter. These steps will aid the company in streamlining business along with investing in market-leading platforms that have strong market positions, margin profiles and are less volatile with bright prospects.
Dover is also reviewing cost structure to right size the company and boost margins. It plans to achieve around $40 million of cost savings in 2018.
The company's bookings at the end of the third quarter were worth $1.94 billion, up from $1.69 billion. Backlog increased 18% to $1.27 billion at the end of the reported quarter. Backed by strong bookings growth, the company is poised for a solid finish to this year. For 2017, it projects earnings per share to in the range of $4.23-$4.33. The mid-point of the guidance reflects an increase of 38% over 2016 on an adjusted basis. The company projects revenues to grow in the range of 14-15%, comprising organic growth of 6-7% and acquisition growth of approximately 10%. This will be partially offset by a 2% impact from the dispositions.
Dover anticipates Printing & Identification platform to deliver consistently solid performance, backed by unique position in the digital textile market along with focus on consumables in marking and coding. From the current 3-4% rate, Dover projects the penetration rate of digital technology to surge 30% over the next decade. The company's comprehensive solutions, including equipment, ink and software, positions it well to fully capitalize on this technology shift. In refrigeration, food retailers in an effort to manage operating cost and differentiate themselves in the market are now investing in closed-door refrigeration cases, energy-efficient systems and in specialized display cases. Dover will benefit from this demand as it has a leading position in these categories.
Further, the company's Energy segment has a large backlog of drilled but uncompleted wells in the last few quarters driven by significant drilling activity. It expects most of these wells to be completed over the coming quarters.
All these factors are anticipated to boost the company's share price in the days ahead.
Dover Corporation Price and Consensus
Dover Corporation Price and Consensus | Dover Corporation Quote
Further, Dover's estimate revision trend for the current year is favorable. The Zacks Consensus Estimate for the current year moved up 1% to $4.31, in the last 90 days. Its positive long-term growth rate of 13% holds promise.
Stocks to Consider
Better-ranked stocks in the same sector are Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has an expected long-term earnings growth rate of 10.33%. Caterpillar shares have surged 48% in the past year.
Terex has an expected long-term earnings growth rate of 11.25%. Its shares have rallied 58% in a year's time.
Deere has an expected long-term earnings growth rate of 8.2%. In the past year, its shares have gone up 48%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dover added that the company has recently signed an agreement to sell the consumer and industrial winch business of Warn for $250 million, anticipated to close in the fourth quarter. Dover anticipates Printing & Identification platform to deliver consistently solid performance, backed by unique position in the digital textile market along with focus on consumables in marking and coding. Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling as well as production industry.
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Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report To read this article on Zacks.com click here. Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling as well as production industry. Dover added that the company has recently signed an agreement to sell the consumer and industrial winch business of Warn for $250 million, anticipated to close in the fourth quarter.
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Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report To read this article on Zacks.com click here. Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling as well as production industry. Dover added that the company has recently signed an agreement to sell the consumer and industrial winch business of Warn for $250 million, anticipated to close in the fourth quarter.
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Stocks to Consider Better-ranked stocks in the same sector are Caterpillar Inc. CAT , Deere & Company DE and Terex Corporation TEX . Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling as well as production industry. Dover added that the company has recently signed an agreement to sell the consumer and industrial winch business of Warn for $250 million, anticipated to close in the fourth quarter.
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2017-11-30 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Caterpillar, Deere & Company, Manitowoc Company and Terex
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-caterpillar-deere-company-manitowoc-company-and-terex
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For Immediate Release
Chicago, IL - November 30, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Caterpillar Inc.CAT , Deere & CompanyDE , The Manitowoc Company Inc.MTW and Terex Corp.TEX .
Here are highlights from Wednesday's Analyst Blog:
Caterpillar or Deere: Which Stock Is the Better Option?
Industrial production improved 0.9% in October as normal operations resumed after Hurricanes Harvey and Irma hampered production in the last two months. Manufacturing output, which accounts for around 75% of total industrial production, increased 1.3%.
With modest upward revisions for July through September, industrial production is now estimated to have only edged down 0.3% at an annual rate in the third quarter. The previously published estimate reflected a 1.5% decline. Total industrial production has risen 2.9% in the past 12 months.
As 95.8% S&P 500 participants in the Industrial Products sector have reported so far, the verdict for third quarter is almost out. These companies have reported 16.7% earnings growth in the quarter. Taking into account the rest of the companies that are yet to report, earnings are expected to grow 18.7% in the quarter, almost in line with second-quarter's earnings growth of 18.8%.
Per our projections, the Industrial Products sector's earnings are expected to further accelerate in the fourth quarter with 20.5% growth. Earnings are anticipated to grow 12.1% in first-quarter 2018, 12.8% in the second quarter and 9.7% in third-quarter 2018. (Read more: Plenty of Positive Retail Surprises )
We note that the sector is currently placed at the top 25% out of the 16 Zacks Sectors. (To learn more visit: About Zacks Sector Rank ).
This sector has also been outperforming the S&P 500 market in recent times. Year to date, the sector has gained around 18.3%, above the S&P 500 Index's growth of 16.9%. The sector has particularly exhibited strength following the election of President Donald Trump, primarily due to his promised pro-growth policies. Government policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand are likely to accelerate growth of the U.S. economy.
In this context, we put the spotlight on two industrial bigwigs, Caterpillar Inc. and Deere & Company . Caterpillar, with a market capitalization of $81.74 billion, is the world's largest manufacturer of construction and mining equipment and also dabbles in agricultural equipment. Deere, with a market capitalization of $46.75 billion, is the one of the world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment.
While both currently flaunt a Zacks Rank #1 (Strong Buy), it will be interesting to see which stock is better positioned in terms of fundamentals. You can see the complete list of today's Zacks #1 Rank stocks here .
Other top-ranked industrial stocks from the sector include The Manitowoc Company Inc. and Terex Corp. Both the stocks sport a Zacks Rank #1.
Manitowoc has an average positive earnings surprise history of 139.1% in the trailing four quarters. Its shares have soared 73% in the past year. Terex generated four outstanding beats over the trailing four quarters, for an outstanding average positive surprise of 135.9%. Terex shares have rallied 53% in the past year.
Caterpillar Beats on the Bourses
Year to date, both Caterpillar and Deere have surpassed S&P 500's performance of 16.9% considerably as well as the overall sector's climb of 20.2%. However, Caterpillar price gain of 49.9% has outshined Deere's rise of 45%.
Valuation
The most appropriate ratio to evaluate these two industrials stocks is EV/EBITDA. This metric is usually used to compare two stocks within the same industry or sector. It is superior to other metrics such as P/E because it is not affected by the different capital structures of the two companies. Further, EV/EBITDA does not include the impact of non-cash expenses.
Both Caterpillar and Deere have EV/EBITDA ratios of 12.58 and 13.4, respectively. Both are underpriced compared with the sector's EV/EBITDA ratio of 15.92. Clearly, Caterpillar is the cheaper proposition in comparison.
Inventory Turnover Ratio
Inventory turnover ratio evaluates the efficiency of an industrial company's manufacturing process. A high inventory turnover ratio ensures that the company is able to manage inventory effectively to generate revenues and avoid wastage.
This is one of the most important financial ratios, which is widely used by industrial companies to measure their ability to utilize inventories. In the last year, the inventory turnover ratio for Caterpillar and Deere has been 3.19% and 4.91%, respectively. While Caterpillar has fallen behind the sector's inventory turnover ratio of 4.86%, Deere has scored better. Deere is a clear winner in this round.
Return on Assets
Return on assets ("ROA") is one of the key financial ratios for industrials as they rely heavily on inventory to create revenues. Although they have a comparatively low level of net profit, an above-average ROA denotes that the company in question is generating earnings by effectively managing assets.
A positive ROA indicates that the company has reported gains from assets for the period in question. Coming to Caterpillar and Deere, ROA for the trailing 12-months is 4.25% and 3.53%, respectively, which are below the industrial sector's level of 5.69%. This round easily goes to Caterpillar.
Dividend Yield
In a year, the dividend yield for Caterpillar has been higher than both the broader sector and Deere. While the broader sector offered a yield of 1.69%, Caterpillar returned 2.25%. In comparison, Deere has a dividend yield of 1.61%.
Leverage Ratio
Deere has a total debt-to-capital ratio of 81.38% much higher than Caterpillar's 69.59%. Both have higher leverage than the industry's level of 46.83%. Consequently, Caterpillar fares better on this front.
Last Reported Quarter Performance and Projections
Caterpillar delivered an impressive third-quarter 2017 with adjusted earnings per share not only surging 129% year over year to $1.95 and beat the Zacks Consensus Estimate by a wide margin of 60%.
The better-than-expected performance was due to strong demand for construction equipment in North America, robust sales in China as well as improvement in other markets and disciplined cost-control efforts. Caterpillar expects revenues in the range of $42-$44 billion and earnings per share of $6.25 for fiscal 2017. (Read More: Caterpillar Surges on Q3 Earnings Beat & Guidance Hike )
Deere's second-quarter fiscal 2017 earnings surged around 74% year over year to $1.57 per share, a positive earnings surprise of 8%. The company's strong results were driven by improving markets for farm and construction equipment.
Performance benefits from advanced products and flexible cost structure also drove growth. Deere projects total equipment sales to increase about 22% year over year in 2018 and projects net income of about $2.6 billion for the fiscal. (Read more: Deere Tops Q4 Earnings & Sales on Rising Farm Market )
Earnings Surprise History: Considering a more comprehensive earnings history, both Caterpillar and Deere delivered positive surprises in the trailing four quarters. However, Caterpillar stands out with an average positive earnings surprise of 53.06%, better than Deere's average beat of 19.5%.
Earnings ESP: When considering Earnings ESP , Deere has a better chance of delivering an earnings beat next quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Deere scores on this front as it sports a Zacks Rank #1 and an Earnings ESP of 4.34%, as the Zacks Consensus Estimate is higher than the Most Accurate Estimate of $1.04.
Meanwhile, Caterpillar has an Earnings ESP of 0.00% as the Zacks Consensus Estimate is in line with the Most Accurate Estimate of $1.69. Caterpillar's Zacks Rank #1 and Earnings ESP of 0.00%, makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Earnings Projections: The Zacks Consensus Estimate for Caterpillar for the current quarter is pegged at $1.69, reflecting an impressive year-over-year growth of 103.31%. The earnings estimate for Deere for the current quarter is pegged at $1.04, depicting a 70.7% year-over-year rise.
Growth Prospects
Both have witnessed strong order activity lately. Improvement in construction and cost cutting will drive margins for both the companies. The construction industry has now entered a more mature phase of expansion, and construction spending can be anticipated to see moderate gains through 2017 and beyond. Lately, both the companies' share price has benefited from the victory of President Trump as investors expect his plans of big spending in infrastructure would help boost revenues.
Long-Term Growth Expectations
In terms of long-term earnings growth expectations, Caterpillar scores above Deere with a projection of 10.3% compared with the latter's 8.0%.
Conclusion
Our comparative analysis shows that Caterpillar holds an edge over Deere when considering share price performance, valuation, ROA, dividend yield and long-term growth expectations. Deere scores on inventory turnover and on the prospect of an earnings beat next quarter.
On comparison, Caterpillar is clearly a better stock as of now.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Government policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand are likely to accelerate growth of the U.S. economy. The better-than-expected performance was due to strong demand for construction equipment in North America, robust sales in China as well as improvement in other markets and disciplined cost-control efforts. Conclusion Our comparative analysis shows that Caterpillar holds an edge over Deere when considering share price performance, valuation, ROA, dividend yield and long-term growth expectations.
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Last Reported Quarter Performance and Projections Caterpillar delivered an impressive third-quarter 2017 with adjusted earnings per share not only surging 129% year over year to $1.95 and beat the Zacks Consensus Estimate by a wide margin of 60%. Conclusion Our comparative analysis shows that Caterpillar holds an edge over Deere when considering share price performance, valuation, ROA, dividend yield and long-term growth expectations. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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(Read More: Caterpillar Surges on Q3 Earnings Beat & Guidance Hike ) Deere's second-quarter fiscal 2017 earnings surged around 74% year over year to $1.57 per share, a positive earnings surprise of 8%. (Read more: Deere Tops Q4 Earnings & Sales on Rising Farm Market ) Earnings Surprise History: Considering a more comprehensive earnings history, both Caterpillar and Deere delivered positive surprises in the trailing four quarters. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Both Caterpillar and Deere have EV/EBITDA ratios of 12.58 and 13.4, respectively. Deere scores on this front as it sports a Zacks Rank #1 and an Earnings ESP of 4.34%, as the Zacks Consensus Estimate is higher than the Most Accurate Estimate of $1.04. Stocks recently featured in the blog include Caterpillar Inc.CAT , Deere & CompanyDE , The Manitowoc Company Inc.MTW and Terex Corp.TEX .
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722197.0
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2017-11-30 00:00:00 UTC
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ABB & Hewlett Packard Collaborates for Industrial Solutions
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https://www.nasdaq.com/articles/abb-hewlett-packard-collaborates-for-industrial-solutions-2017-11-30
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ABB Ltd.ABB recently teamed up with Hewlett Packard Enterprise Company HPE to combine the former's industry-leading digital offerings, ABB Ability, with Hewlett Packard's innovative hybrid information technology ("IT") solutions.
The partnership will leverage ABB's expertise in operations technologies ("OT") and Hewlett Packard Enterprise's proficiency in IT to come up with joint industry solutions, which will help turn industrial data into insights and automatic action.
Working in partnership with Hewlett Packard, the company will come up with solutions that produce actionable insights from massive amounts of industrial data, enabling customers to increase the efficiency and flexibility of management of industrial processes across the supply chain. The collaboration will bring intelligence from cloud-based solutions to on-premises deployments in industrial plants as well as data centers for greater speed and yield.
The collaboration will allow the customers to run ABB Ability solutions on hybrid platforms like HPE ProLiant for Microsoft Azure Stack, enabling themto deploy applications to their preferred location.Besides accelerating data processing in industrial plants, leveraging the right mix of IT platforms will also facilitate efficient control of operations across locations. Further, the partnership is working on delivering joint solutions for data centers, including data center automation and secure edge data center.
Our Take
ABB stands to benefit from investments made in the upgrade of power infrastructure and its focus on reduction of energy intensity across all end-markets. The company is strengthening its position by launching new set of unique solutions as well as software packages to reap the benefits of industrial digitalization. Positive development in the electricity value chain, rapid progress of Internet of Things, Services and People (IoTSP), rapid urbanization along with a surge in energy-efficient transport & infrastructure bode well for the company in the long term.
The company has earned a solid reputation for winning strategic awards and forging important partnerships. Further, broader market conditions represent selective opportunities that can supplement growth momentum going forward. The company has also been successful in clinching major orders across all of its segments that are expected to drive growth. Year to date, the Zacks Rank #3 (Hold) company's shares have returned 21%, outperforming the industry 's average gain of 15.6%.
However, the fact remains that geopolitical tension globally indicates that the company will continue to suffer from macroeconomic volatility in the short run. Softness in industrial production and the projected slowdown, are weighing on the financials. Moreover, its order level in certain business segments has been hurt in recent times due on weak oil and gas demand.
Stocks to Consider
Some better-ranked stocks from the same space include Deere & Company DE and Alamo Group, Inc. ALG . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Alamo Group carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 19.5%.
Alamo Group has surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 6.1%.
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Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
ABB Ltd (ABB): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collaboration will bring intelligence from cloud-based solutions to on-premises deployments in industrial plants as well as data centers for greater speed and yield. Our Take ABB stands to benefit from investments made in the upgrade of power infrastructure and its focus on reduction of energy intensity across all end-markets. The collaboration will allow the customers to run ABB Ability solutions on hybrid platforms like HPE ProLiant for Microsoft Azure Stack, enabling themto deploy applications to their preferred location.Besides accelerating data processing in industrial plants, leveraging the right mix of IT platforms will also facilitate efficient control of operations across locations.
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While Deere & Company sports a Zacks Rank #1 (Strong Buy), Alamo Group carries a Zacks Rank #2 (Buy). Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 19.5%. Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. The collaboration will bring intelligence from cloud-based solutions to on-premises deployments in industrial plants as well as data centers for greater speed and yield. The collaboration will allow the customers to run ABB Ability solutions on hybrid platforms like HPE ProLiant for Microsoft Azure Stack, enabling themto deploy applications to their preferred location.Besides accelerating data processing in industrial plants, leveraging the right mix of IT platforms will also facilitate efficient control of operations across locations.
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Stocks to Consider Some better-ranked stocks from the same space include Deere & Company DE and Alamo Group, Inc. ALG . While Deere & Company sports a Zacks Rank #1 (Strong Buy), Alamo Group carries a Zacks Rank #2 (Buy). The collaboration will bring intelligence from cloud-based solutions to on-premises deployments in industrial plants as well as data centers for greater speed and yield.
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3b806e0c-605e-42d0-bfd7-4c2acc0933c2
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722198.0
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2017-11-30 00:00:00 UTC
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5 Explosive Relative Price Strength Stocks in the Spotlight
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https://www.nasdaq.com/articles/5-explosive-relative-price-strength-stocks-spotlight-2017-11-30
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Investors generally gauge a stock's potential return by examining earnings growth and valuation multiples. At the same time, it's important to measure the performance of such a stock relative to its industry or peers, or the appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance to provide considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth, and are the best ways to go about this strategy.
Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change - 12 weeks greater than 0
Relative % Price change - 4 weeks greater than 0
Relative % Price change - 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks - that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years - can get through. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Scoreless than or equal to B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.
Here are the five of the 20 stocks that made it through the screen:
Copart Inc.CPRT : Copart, founded in 1982, provides online auction and a wide range of remarketing services to process and sell salvage and clean title vehicles. Sporting a VGM Score of B, this Dallas, TX-headquartered company's expected EPS growth rate for three to five years currently stands at 20.1%, comparing favorably with the industry's growth rate of 13%.
Deere & CompanyDE : Headquartered in Moline, IL, Deere & Company is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The firm has a VGM Score of B and an excellent earnings surprise history. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 19.5%.
Urban Outfitters, Inc.URBN : A lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products, Urban Outfitters has a VGM Score of A. Over 30 days, the Philadelphia, PA-based company has seen the Zacks Consensus Estimate for FY 2018 and FY 2019 increase 6.9% and 10.2%, to $1.55 and $1.73 per share, respectively.
American Axle & Manufacturing Holdings, Inc.AXL : Headquartered in Detroit, MI, American Axle & Manufacturing Holdings is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. The company, major customers include General Motors Co. GM and Chrysler, has a VGM Score of A and an enviable earnings surprise history. It surpassed estimates in each of the last four quarters.
Pilgrim's Pride CorporationPPC : Headquartered in Greeley, CO, Pilgrim's Pride is engaged in the processing, production, marketing and distribution of frozen, fresh as well as value-added chicken products. The 2017 Zacks Consensus Estimate for this company is $2.85, representing some 62.7% earnings per share growth over 2016. Next year's average forecast is $2.99, pointing to another 5.1% growth. Pilgrim's Pride has a VGM Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Motors Company (GM): Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Copart, Inc. (CPRT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. The company, major customers include General Motors Co. GM and Chrysler, has a VGM Score of A and an enviable earnings surprise history. If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative.
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Screening Parameters Relative % Price change - 12 weeks greater than 0 Relative % Price change - 4 weeks greater than 0 Relative % Price change - 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) American Axle & Manufacturing Holdings, Inc.AXL : Headquartered in Detroit, MI, American Axle & Manufacturing Holdings is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. Click to get this free report General Motors Company (GM): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Screening Parameters Relative % Price change - 12 weeks greater than 0 Relative % Price change - 4 weeks greater than 0 Relative % Price change - 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) Click to get this free report General Motors Company (GM): Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report To read this article on Zacks.com click here. If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative.
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Screening Parameters Relative % Price change - 12 weeks greater than 0 Relative % Price change - 4 weeks greater than 0 Relative % Price change - 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) VGM Scoreless than or equal to B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential. If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative.
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2017-11-30 00:00:00 UTC
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3 Top Construction Machinery Stocks You Should Consider Buying Now
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https://www.nasdaq.com/articles/3-top-construction-machinery-stocks-you-should-consider-buying-now-2017-11-30
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Construction machinery stocks are sizzling this year. Leading manufacturers are reporting robust machinery sales worldwide, indicating huge pent-up demand that needs to be met as commodity markets recover, China continues its construction spree, and America rebuilds its crumbling infrastructure. The world's largest construction-equipment manufacturer, Caterpillar Inc. (NYSE: CAT) , recently stated that "increasing activity in the oil and gas industry, including an uptick in pipeline construction and improving residential and nonresidential construction," are driving end-user demand for machinery.
The recovery is faster than expected, and the strength is visible around the globe, indicating this could be the beginning of an expansion phase that investors in construction-machinery stocks have been waiting for.
And it's not just Caterpillar. From Japan's Komatsu (NASDAQOTH: KMTUY) and Hitachi Construction to America's own lifting-equipment expert TerexCorporation (NYSE: TEX) and cranes specialist Manitowoc Company (NYSE: MTW) , order backlog is on the rise for all. Elsewhere, farm-equipment giants such as Deere & Company (NYSE: DE) and CNHI Industrial (NYSE: CNHI) are exploiting the strength in the construction markets to offset weakness in agriculture.
There's another interesting way to look at it. Strong demand in the aftermarket (i.e, used equipment) markets is usually a leading indicator of what's to come for the original-equipment manufacturers. Ritchie Bros. Auctioneers (NYSE: RBA) , the world's largest auctioneer and seller of used heavy machinery, said during its recent earnings release that there's "significant equipment supply shortage especially in the U.S., as dealers and end users continue to experience high equipment utilization rates."
The verdict is clear, and as an investor, you wouldn't want to miss making money off the global construction boom. In other words, the time could be ripe to consider some construction-machinery stocks, with three top names being Caterpillar, Deere, and Terex.
Caterpillar's enviable position in the construction-equipment market should take it far
As the undisputed leader in the global construction-machinery industry, Caterpillar stands to be the biggest beneficiary of a construction boom. The opportunities could be even bigger if President Trump's $1 trillion infrastructure spending plan gets rolling, as Caterpillar would probably be a top government choice to help build roads, bridges, tunnels, pipelines, and waterworks.
In fact, construction industries is turning out to be Caterpillar's strongest segment so far this year, with the Asia-Pacific region recording double-digit growth in sales, buoyed by China. In North America, it is the "shortage" that Ritchie Bros. was referring to, which is volumes and prices. The auctioneer, which also has an alliance with Caterpillar, reported some big-ticket excavator sales in 2017, with Caterpillar's products ruling the roost.
The biggest advantage of owning Caterpillar over the other construction-machinery stocks is that it's also a play on the mining and oil and gas sectors -- two markets where the company's hold is as big as in construction. Miners, for instance, are reviving their sidelined projects in the wake of rising metal prices. That explains why Caterpillar's resource industries (that is, mining) sales have finally started to pick up after languishing for years.
Caterpillar looks pricey after its 48% run-up this year, but remember, it's a cyclical stock; and as I explained earlier, the construction business cycle appears to have bounced off its lows. With analysts projecting the company's earnings to grow nearly 40% in the next five years, you wouldn't go wrong betting on Caterpillar to gain exposure to the construction-machinery industry.
A big acquisition should lift Deere's construction-machinery sales
Deere recently reported its fiscal 2017 results (the company follows a November-October financial year), surprising the market with a 12% surge in net sales. Guess which segment drove Deere's top line: construction and forestry.
Construction and forestry contributed 22% to Deere's total machinery sales in 2017 and recorded 17% jump in sales to $5.7 billion for the full year. Comparatively, Deere's agriculture and turf business reported 9% growth in sales. As impressive as these numbers are, there's another reason investors in construction-machinery stocks should consider Deere.
Between construction and agriculture, the latter tends to be a lot more volatile and unpredictable because of the vagaries of climatic conditions and crop prices. Deere knows this well, which is why it's now focused on the construction side of its business. Deere is about to acquire Germany-based Wirtgen Group, a privately held manufacturer of road-construction equipment, in a deal estimated to be worth $5.2 billion. Wirtgen owns five premium brands and sells machinery in 100 countries. Deere expects to close the deal in coming weeks and believes it'll be immediately accretive to earnings.
Here's the biggest number you need to know: Deere projects its 2018 construction and forestry sales to grow a staggering 69% thanks to its Wirtgen acquisition. That should be reason enough for you to load up on Deere if you're looking to put some money into construction-equipment stocks.
Don't overlook the potential in this construction-equipment stock
Terex is the only heavy-machinery manufacturer in the U.S. aside from Caterpillar and Deere to have made it to the list of the 10 largest construction-equipment companies in the world by sales. But that isn't why I'm recommending the stock to investors seeking exposure to the industry -- it is Terex's diverse portfolio, recent restructuring efforts, and strong earnings growth that have caught my attention.
Terex is among the leading manufacturers of aerial works platforms, cranes, and materials processing solutions in the United States. Last quarter was the third such quarter when Terex upgraded its fiscal 2017 adjusted earnings-per-share guidance, encouraged by strong sales from all its segments. Terex now expects to earn adjusted EPS of $1.20-$1.30, versus $0.88 in 2016. Rival Manitowoc, comparatively, could end the year with losses as it struggles to find a footing as a standalone cranes company.
Terex also appears to have a stronger hold in China than Manitowoc, going by the $250 million supply deal for 5,000 aerial machines that it bagged during Trump's recent visit to the nation. Terex has been consolidating its operations in China and Germany and cleaning up its balance sheet to improve its financial standing, so much so that it's targeting returns on invested capital of 20% or more by 2020, compared with just about 6% in 2016. In short, Terex appears to be on solid footing to take advantage of a recovery in construction markets.
With a recent research report from Reportlinker projecting the global heavy construction-machinery market to grow at an annual compounded average rate of 7% between 2016 and 2021, these three stocks look poised to gain the most in the long run.
10 stocks we like better than Caterpillar
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading manufacturers are reporting robust machinery sales worldwide, indicating huge pent-up demand that needs to be met as commodity markets recover, China continues its construction spree, and America rebuilds its crumbling infrastructure. The opportunities could be even bigger if President Trump's $1 trillion infrastructure spending plan gets rolling, as Caterpillar would probably be a top government choice to help build roads, bridges, tunnels, pipelines, and waterworks. With a recent research report from Reportlinker projecting the global heavy construction-machinery market to grow at an annual compounded average rate of 7% between 2016 and 2021, these three stocks look poised to gain the most in the long run.
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The world's largest construction-equipment manufacturer, Caterpillar Inc. (NYSE: CAT) , recently stated that "increasing activity in the oil and gas industry, including an uptick in pipeline construction and improving residential and nonresidential construction," are driving end-user demand for machinery. Elsewhere, farm-equipment giants such as Deere & Company (NYSE: DE) and CNHI Industrial (NYSE: CNHI) are exploiting the strength in the construction markets to offset weakness in agriculture. A big acquisition should lift Deere's construction-machinery sales Deere recently reported its fiscal 2017 results (the company follows a November-October financial year), surprising the market with a 12% surge in net sales.
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The world's largest construction-equipment manufacturer, Caterpillar Inc. (NYSE: CAT) , recently stated that "increasing activity in the oil and gas industry, including an uptick in pipeline construction and improving residential and nonresidential construction," are driving end-user demand for machinery. A big acquisition should lift Deere's construction-machinery sales Deere recently reported its fiscal 2017 results (the company follows a November-October financial year), surprising the market with a 12% surge in net sales. Don't overlook the potential in this construction-equipment stock Terex is the only heavy-machinery manufacturer in the U.S. aside from Caterpillar and Deere to have made it to the list of the 10 largest construction-equipment companies in the world by sales.
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Strong demand in the aftermarket (i.e, used equipment) markets is usually a leading indicator of what's to come for the original-equipment manufacturers. Leading manufacturers are reporting robust machinery sales worldwide, indicating huge pent-up demand that needs to be met as commodity markets recover, China continues its construction spree, and America rebuilds its crumbling infrastructure. The world's largest construction-equipment manufacturer, Caterpillar Inc. (NYSE: CAT) , recently stated that "increasing activity in the oil and gas industry, including an uptick in pipeline construction and improving residential and nonresidential construction," are driving end-user demand for machinery.
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