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Kadant (KAI) Hits New 52-Week High: What's Driving it?
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Shares of Kadant Inc. (KAI - Free Report) reached a new 52-week high of $81.55 during its trading session on Jun 12. This apex improved upon the last 52-week high of $81.10 on Jun 9.
In the last three months, shares of the company yielded 38.47% return, outperforming the gain of 7.32% seen by the Zacks categorized Machinery General Industrial industry.
On Jun 12, Kadant closed its trading session at $81.35, yielding a year-to-date return of roughly 33.8%. The trading volume for the session was approximately 0.08 million shares. Positive earnings estimate revisions for 2017 and 2018 indicate the stock’s potential for further price appreciation.
Growth Drivers
Kadant’s financial performance has been impressive in the last four quarters, with an average positive earnings surprise of 25.48%. Stellar performance in first-quarter 2017 as well as a number of events subsequent to the results release on May 2 drove shares higher by 27.1%. A sneak peek into the results reveals that improvement in profitability was achieved on the back of healthy segmental business and improvement in gross margin.
In addition, Kadant’s positive revision in its 2017 forecasts boosted market sentiments. Revenues are now predicted to be $427−$437 million, up from the previous forecast of $423−$433 million. Earnings is expected to be in a $3.27−$3.37 per share range versus $3.13−$3.23 expected earlier. The raised guidance is backed by solid growth momentum in both bookings and parts and consumables business.
Notably, in the same month, Kadant announced quarterly dividend payment to its shareholders. It also received the board of directors’ approval for a $20 million share buyback program. Also, the company revealed that it signed agreements to acquire NII FPG Company’s forest products business. The acquired assets will complement Kadant’s wood processing product line.
Over the last 60 days, the Zacks Consensus Estimate for the stock increased 4% to $3.38 for 2017 and 5.3% to $3.76 for 2018. These estimates represent year-over-year growth of 9.19% for 2017 and 10.93% for 2018.
With a market capitalization of $895 million, Kadant currently sports a Zacks Rank #1 (Strong Buy). Others stocks worth considering in the machinery industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While both Kennametal and Parker-Hannifin sport a Zacks Rank #1, Regal Beloit carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Regal Beloit’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 1.48%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Kadant (KAI) Hits New 52-Week High: What's Driving it?
Shares of Kadant Inc. (KAI - Free Report) reached a new 52-week high of $81.55 during its trading session on Jun 12. This apex improved upon the last 52-week high of $81.10 on Jun 9.
In the last three months, shares of the company yielded 38.47% return, outperforming the gain of 7.32% seen by the Zacks categorized Machinery General Industrial industry.
On Jun 12, Kadant closed its trading session at $81.35, yielding a year-to-date return of roughly 33.8%. The trading volume for the session was approximately 0.08 million shares. Positive earnings estimate revisions for 2017 and 2018 indicate the stock’s potential for further price appreciation.
Growth Drivers
Kadant’s financial performance has been impressive in the last four quarters, with an average positive earnings surprise of 25.48%. Stellar performance in first-quarter 2017 as well as a number of events subsequent to the results release on May 2 drove shares higher by 27.1%. A sneak peek into the results reveals that improvement in profitability was achieved on the back of healthy segmental business and improvement in gross margin.
In addition, Kadant’s positive revision in its 2017 forecasts boosted market sentiments. Revenues are now predicted to be $427−$437 million, up from the previous forecast of $423−$433 million. Earnings is expected to be in a $3.27−$3.37 per share range versus $3.13−$3.23 expected earlier. The raised guidance is backed by solid growth momentum in both bookings and parts and consumables business.
Notably, in the same month, Kadant announced quarterly dividend payment to its shareholders. It also received the board of directors’ approval for a $20 million share buyback program. Also, the company revealed that it signed agreements to acquire NII FPG Company’s forest products business. The acquired assets will complement Kadant’s wood processing product line.
Over the last 60 days, the Zacks Consensus Estimate for the stock increased 4% to $3.38 for 2017 and 5.3% to $3.76 for 2018. These estimates represent year-over-year growth of 9.19% for 2017 and 10.93% for 2018.
Kadant Inc Price and Consensus
Kadant Inc Price and Consensus | Kadant Inc Quote
Zacks Rank & Other Stocks to Consider
With a market capitalization of $895 million, Kadant currently sports a Zacks Rank #1 (Strong Buy). Others stocks worth considering in the machinery industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While both Kennametal and Parker-Hannifin sport a Zacks Rank #1, Regal Beloit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Regal Beloit’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 1.48%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>