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Middleby (MIDD) Looks Bullish on Robust Growth Drivers
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We issued an updated research report on the premium diversified machinery company Middleby Corp. (MIDD - Free Report) on Dec 16, 2016.
Middleby’s stock looks bullish at the moment. Post third-quarter 2016 earnings release (Nov 8, 2016), the company’s shares recorded a e return of 12.26% – outperforming 9.23% return provided by the Zacks categorized Machinery-General Industrial industry.
Why is Middleby a Promising Stock?
Middleby’s projected sales growth (F1/F0) is currently pegged at 23.13%. Notably, this Zacks Rank #2 (Buy) stock’s projected earnings per share (‘EPS’) growth (F1/F0) is presently valued at 26.37%.
Also the Zacks Consensus Estimate for Middleby’s shares has inched up by 1.8% for 2017, for the last 30 days.
The actual causal factors behind these fundamentals are existing growth drivers of the company.
Superior innovation and popular product categories such as Tortilla Warmer, Double Batch Oven and Ventless Combi are likely to boost Middleby’s sales, in the quarters ahead.
Also, the company’s acquired assets are anticipated to bear fruits in the near term. For instance, in May 2016, Middleby completed the acquisition of Emico Automated Bakery Equipment Solutions and Follett Corporation. These buyouts are reinforcing the company’s beverage business and, thus, assisting in capturing higher demand from restaurant chain customers.
In addition, profitability is expected to improve on the back of lower costs and greater operational efficacy, over the long term. Middleby anticipates accruing an annualized cost savings of almost $24.1 million by the end of 2016, on the back of its strategic restructuring initiatives, including consolidation and disposition of certain business operations and facilities. At the same time, the company is strategically lowering its headcounts and optimally deploying productive resources within the business for attaining greater operational efficiency.
Therefore, we believe that including Middleby’s stock in your portfolio would be a smart investment move.
Key Picks
Some favorably placed stocks from the same space are ACCO Brands Corporation (ACCO - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Alarm.Com Holdings, Inc. (ALRM - Free Report) .
ACCO Brands Corporation posted an average positive earnings surprise of 23.93%, over the four trailing quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies currently carries a Zacks Rank #2. It posted an average positive earnings surprise of 4.93%, over the last four quarters.
Alarm.Com Holdings also carries a Zacks Rank #2. The company delivered an average positive earnings surprise of 165.56%, over the trailing four quarters.
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Middleby (MIDD) Looks Bullish on Robust Growth Drivers
We issued an updated research report on the premium diversified machinery company Middleby Corp. (MIDD - Free Report) on Dec 16, 2016.
Middleby’s stock looks bullish at the moment. Post third-quarter 2016 earnings release (Nov 8, 2016), the company’s shares recorded a e return of 12.26% – outperforming 9.23% return provided by the Zacks categorized Machinery-General Industrial industry.
Why is Middleby a Promising Stock?
Middleby’s projected sales growth (F1/F0) is currently pegged at 23.13%. Notably, this Zacks Rank #2 (Buy) stock’s projected earnings per share (‘EPS’) growth (F1/F0) is presently valued at 26.37%.
Also the Zacks Consensus Estimate for Middleby’s shares has inched up by 1.8% for 2017, for the last 30 days.
The actual causal factors behind these fundamentals are existing growth drivers of the company.
Superior innovation and popular product categories such as Tortilla Warmer, Double Batch Oven and Ventless Combi are likely to boost Middleby’s sales, in the quarters ahead.
Also, the company’s acquired assets are anticipated to bear fruits in the near term. For instance, in May 2016, Middleby completed the acquisition of Emico Automated Bakery Equipment Solutions and Follett Corporation. These buyouts are reinforcing the company’s beverage business and, thus, assisting in capturing higher demand from restaurant chain customers.
In addition, profitability is expected to improve on the back of lower costs and greater operational efficacy, over the long term. Middleby anticipates accruing an annualized cost savings of almost $24.1 million by the end of 2016, on the back of its strategic restructuring initiatives, including consolidation and disposition of certain business operations and facilities. At the same time, the company is strategically lowering its headcounts and optimally deploying productive resources within the business for attaining greater operational efficiency.
Therefore, we believe that including Middleby’s stock in your portfolio would be a smart investment move.
Key Picks
Some favorably placed stocks from the same space are ACCO Brands Corporation (ACCO - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Alarm.Com Holdings, Inc. (ALRM - Free Report) .
ACCO Brands Corporation posted an average positive earnings surprise of 23.93%, over the four trailing quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies currently carries a Zacks Rank #2. It posted an average positive earnings surprise of 4.93%, over the last four quarters.
Alarm.Com Holdings also carries a Zacks Rank #2. The company delivered an average positive earnings surprise of 165.56%, over the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to 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. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>