We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Middleby (MIDD) Downgraded to Sell, Macro Headwinds Linger
Read MoreHide Full Article
On Sep 20, The Middleby Corporation (MIDD - Free Report) was downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies carrying a Zacks Rank #4 have chances of performing weaker than the broader market over the upcoming quarters.
Over the last month, shares of the stock yielded a return of 4.7%, underperforming 7.6% growth recorded by the industry.
Middleby intends to boost its revenues and profitability on the back of increased business internationalization. Nevertheless, foreign business exposure increases the incidence of economic and geopolitical risks for the company. For instance, adverse foreign exchange impact lowered Middleby's top-line results by $10.7 million in second-quarter 2017. A stronger U.S. dollar will continue to weigh over the company's revenues in the upcoming quarters.
Middleby’s top-line performance was hurt in the recently reported quarter due to lesser purchases made by major chain-restaurant customers and reduced sales from the European end markets. Persistence of these issues might further depress revenues in the near future.
Moreover, the ongoing restructuring moves in the AGA Group might continue to thwart the company's Residential Kitchen Equipment Group's revenues going forward.
We also notice that other headwinds such as stiff industry rivalry or unfavorable price fluctuation of major raw materials, such as steel, might dent the company’s near-term top- and bottom-line performance.
Reflective of negative market sentiments, over the last 60 days, the Zacks Consensus Estimate for the stock also moved south for both 2017 and 2018.
Stocks to Consider
Better-ranked stocks in the industry are listed below:
Graham Corporation’s (GHM - Free Report) earnings are projected to grow 15% in the next three to five years. The stock currently holds a Zacks Rank #2.
Altra Industrial Motion Corp.’s earnings are projected to grow 8% in the next three to five years. The stock currently carries a Zacks Rank #2.
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.
Image: Bigstock
Middleby (MIDD) Downgraded to Sell, Macro Headwinds Linger
On Sep 20, The Middleby Corporation (MIDD - Free Report) was downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies carrying a Zacks Rank #4 have chances of performing weaker than the broader market over the upcoming quarters.
Over the last month, shares of the stock yielded a return of 4.7%, underperforming 7.6% growth recorded by the industry.
Notably, the company currently has a VGM Score D.
Reasons for the Downgrade
Middleby intends to boost its revenues and profitability on the back of increased business internationalization. Nevertheless, foreign business exposure increases the incidence of economic and geopolitical risks for the company. For instance, adverse foreign exchange impact lowered Middleby's top-line results by $10.7 million in second-quarter 2017. A stronger U.S. dollar will continue to weigh over the company's revenues in the upcoming quarters.
Middleby’s top-line performance was hurt in the recently reported quarter due to lesser purchases made by major chain-restaurant customers and reduced sales from the European end markets. Persistence of these issues might further depress revenues in the near future.
Moreover, the ongoing restructuring moves in the AGA Group might continue to thwart the company's Residential Kitchen Equipment Group's revenues going forward.
We also notice that other headwinds such as stiff industry rivalry or unfavorable price fluctuation of major raw materials, such as steel, might dent the company’s near-term top- and bottom-line performance.
Reflective of negative market sentiments, over the last 60 days, the Zacks Consensus Estimate for the stock also moved south for both 2017 and 2018.
Stocks to Consider
Better-ranked stocks in the industry are listed below:
Graco Inc‘s (GGG - Free Report) earnings are projected to grow 10.5% in the next three to five years. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Graham Corporation’s (GHM - Free Report) earnings are projected to grow 15% in the next three to five years. The stock currently holds a Zacks Rank #2.
Altra Industrial Motion Corp.’s earnings are projected to grow 8% in the next three to five years. The stock currently carries a Zacks Rank #2.
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 >>