Lincoln Electric Holdings Inc.’s (LECO Quick QuoteLECO - Free Report) shares attained a 52-week high of $81.33 during intraday trading on Jan 16, finally closing a tad lower at $81.22.

Lincoln Electric has a market cap of $5.36 billion. Average volume of shares traded in the last three months was approximately 465K. The company has long-term estimated earnings per share growth rate of 17.1%.

In the past one year, the company has delivered a robust year-to-date return of about 68.4%, outperforming the Zacks Categorized Machines – Tool & Related Products subindustry’s gain of 37.7%.



What’s Driving Lincoln Electric?

Lincoln Electric continues to undertake initiatives to bolster improved returns through acquisitions. In an attempt to advance its automation growth strategy, the company acquired Vizient Manufacturing Solutions (Vizient). The buyout will help in diversifying Lincoln Electric’s end market exposure in addition to expanding growth opportunities globally. With Vizient, the company’s automation portfolio is approaching $400 million in annual sales. Further, Vizient’s system design capabilities will complement Lincoln Electric’s current offering.

Lincoln Electric’s short-term initiatives are focused on muting the impact of current end-market conditions and maintaining the cost-reduction actions outlined in 2015, which will aid growth in the coming quarters. The company continues to remain focused on customers, and executing its 2020 vision and strategy. Management also remains optimistic with the progress in growth programs in automation, alloys, aluminum, equipment and education.

New product rollouts will drive Lincoln Electric’s growth. During 2016, the company launched new products which include a new version of its virtual welding training solution for students, new and proprietary robotic and manual solutions for aluminum and galvanized steel welding processes and a global TIG-welding portfolio that is localized for different geographies. The company has also introduced an improved line of cutting tables and a remote-controlled operating system using its Flextec 350 welders for use in industrial construction applications. These initiatives reflect its consistent investment in technology and solutions.

Lincoln Electric Holdings, Inc. Price and Consensus

Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote

Moreover, the company is focusing on markets where it can leverage its solutions. Further, it is taking strides in expanding the Lincoln Electric brand, such as in Germany and in targeted developing regions such as China, the Middle East, and Africa, where it is adding commercial resources to drive long-term growth. The company is also introducing proprietary solutions, like the automated PythonX 3-D plasma cutting solution, which will differentiate the brand in these markets.

Lincoln Electric currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the same sector include Altra Industrial Motion Corp. , Apogee Enterprises, Inc. (APOG Quick QuoteAPOG - Free Report) and Actuant Corporation .

Altra Industrial Motion sports a Zacks Rank #1 (Strong Buy) and has an impressive earnings track record. It has an average positive earnings surprise of 8.06% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apogee Enterprises also boasts a Zacks Rank #1 and has an average earnings surprise of 13.24% in the trailing four quarters.

Actuant Corporation, another Zacks Rank #1 stock, has an average positive earnings surprise of 11.47% for the past four quarters.

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