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Middleby (MIDD) Upgraded to Buy on Strong Growth Drivers

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On Aug 16, 2016, Zacks Investment Research upgraded Middleby Corp. (MIDD - Free Report) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies carrying a Zacks Rank #2 have better chances of performing above the broader market over the upcoming quarters.

Why the Upgrade?

Middleby is driving revenues on the back of increased demand from chain restaurant customers as well as acquisition benefits. Moreover, the company has a number of product launches lined up, which should support further rise in demand. Its solid product portfolio and diversified business are also expected to boost its sales and profitability in the quarters ahead. Middleby tries to accrue greater amount of cash flows from its operating activities, on grounds of superior cost-saving strategies. The company aims to utilize the saved fund in lucrative capital deployment programs, through which it would be able to augment its shareholders' returns in the near future. We also believe that the company’s new acquisitions would further support its revenue and margin growth trajectory.

Over the last 60 days, the Zacks Consensus Estimate for the stock has been revised upwards, for both 2016 and 2017.

MIDDLEBY CORP Price and Consensus

 

MIDDLEBY CORP Price and Consensus | MIDDLEBY CORP Quote

Other Stocks to Consider

Some other favorably ranked stocks within the industry include DXP Enterprises, Inc. (DXPE - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Tennant Company (TNC - Free Report) . All the three companies currently sport a Zacks Rank #1 (Strong Buy).
 

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