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.
Here's Why Luxfer Holdings (LXFR) Stock is Worth Buying Now
Read MoreHide Full Article
We believe that Luxfer Holdings PLC (LXFR - Free Report) is a solid choice for investors who are seeking exposure in the machinery industry.
The stock, with roughly $488 million market capitalization, was upgraded to a Zacks Rank #1 (Strong Buy) on Jun 9. Its investment appeal is further accentuated by a VGM Score of A.
Luxfer Holdings delivered better-than-expected results in two of the last four quarters while surpassing estimates in one and recording in-line results in one. Average earnings surprise was positive 4.61%. Notably, the company’s shares have rallied 28% in the past three months, outperforming 5.9% decline of the industry.
Why the Upgrade?
We are providing a snapshot of how Luxfer Holdings fared in the first quarter of 2018. Its earnings of 38 cents per share surpassed the Zacks Consensus Estimate by 18.8%. Net sales went up 15.8% year over year, on the back of healthy performance of Gas Cylinders and Elektron segments.
In the quarters ahead, Luxfer Holdings anticipates growth in sales of SCBA and aluminum cylinders to be beneficial for its Gas Cylinders segment while increasing sales of magnesium-based products are likely to drive results for the Elektron segment. Lower tax rates will be a boon as well. For 2018, the company has increased its earnings per share guidance to $1.20-$1.30.
In addition to these, Luxfer Holdings’ transformational initiatives — including simplification, high-performance culture and talent, productivity acceleration, growth recovery and portfolio optimization — will enable the company to deliver double-digit earnings growth in the years ahead. The phase 1 of the transformational initiatives started in 2017 and is due to end in 2018 while phase 2 will be carried out during 2017-2020 and phase 3 from 2018 onward. From the productivity acceleration initiative, the company anticipates realizing $20 million in annualized savings by 2021.
Moreover, Luxfer Holdings’ addressable end-markets, including highly engineered advanced materials and high-performance gas cylinders, are estimated to be worth $10 billion. Moreover, from 2018 to 2023, the advanced material market is anticipated to grow 3-7% (CAGR) and gas cylinder market to expand 1-2% (CAGR).
In the last 30 days, the company’s earnings estimates for 2018 and 2019 have been revised positively. The Zacks Consensus Estimate stands at $1.29 for 2018 and $1.53 for 2019, reflecting an increase of 10.3% and 13.3% from their respective 30-day-ago tallies. Estimates represent year-over-year growth of 26.5% for 2018 and 18.6% for 2019.
Some other top-ranked stocks in the industry are Graco Inc. (GGG - Free Report) , Twin Disc, Incorporated (TWIN - Free Report) and Altra Industrial Motion Corp. . While both Graco and Twin Disc sport a Zacks Rank #1, Altra Industrial Motion carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last 60 days, earnings estimates for each of these stocks have improved for the current year. Also, average positive earnings surprise for last four quarters has been 12.81% for Graco, 250.43% for Twin Disc and 5.06% for Altra Industrial Motion.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why Luxfer Holdings (LXFR) Stock is Worth Buying Now
We believe that Luxfer Holdings PLC (LXFR - Free Report) is a solid choice for investors who are seeking exposure in the machinery industry.
The stock, with roughly $488 million market capitalization, was upgraded to a Zacks Rank #1 (Strong Buy) on Jun 9. Its investment appeal is further accentuated by a VGM Score of A.
Luxfer Holdings delivered better-than-expected results in two of the last four quarters while surpassing estimates in one and recording in-line results in one. Average earnings surprise was positive 4.61%. Notably, the company’s shares have rallied 28% in the past three months, outperforming 5.9% decline of the industry.
Why the Upgrade?
We are providing a snapshot of how Luxfer Holdings fared in the first quarter of 2018. Its earnings of 38 cents per share surpassed the Zacks Consensus Estimate by 18.8%. Net sales went up 15.8% year over year, on the back of healthy performance of Gas Cylinders and Elektron segments.
In the quarters ahead, Luxfer Holdings anticipates growth in sales of SCBA and aluminum cylinders to be beneficial for its Gas Cylinders segment while increasing sales of magnesium-based products are likely to drive results for the Elektron segment. Lower tax rates will be a boon as well. For 2018, the company has increased its earnings per share guidance to $1.20-$1.30.
In addition to these, Luxfer Holdings’ transformational initiatives — including simplification, high-performance culture and talent, productivity acceleration, growth recovery and portfolio optimization — will enable the company to deliver double-digit earnings growth in the years ahead. The phase 1 of the transformational initiatives started in 2017 and is due to end in 2018 while phase 2 will be carried out during 2017-2020 and phase 3 from 2018 onward. From the productivity acceleration initiative, the company anticipates realizing $20 million in annualized savings by 2021.
Moreover, Luxfer Holdings’ addressable end-markets, including highly engineered advanced materials and high-performance gas cylinders, are estimated to be worth $10 billion. Moreover, from 2018 to 2023, the advanced material market is anticipated to grow 3-7% (CAGR) and gas cylinder market to expand 1-2% (CAGR).
In the last 30 days, the company’s earnings estimates for 2018 and 2019 have been revised positively. The Zacks Consensus Estimate stands at $1.29 for 2018 and $1.53 for 2019, reflecting an increase of 10.3% and 13.3% from their respective 30-day-ago tallies. Estimates represent year-over-year growth of 26.5% for 2018 and 18.6% for 2019.
Luxfer Holdings PLC Price and Consensus
Luxfer Holdings PLC Price and Consensus | Luxfer Holdings PLC Quote
Other Stocks to Consider
Some other top-ranked stocks in the industry are Graco Inc. (GGG - Free Report) , Twin Disc, Incorporated (TWIN - Free Report) and Altra Industrial Motion Corp. . While both Graco and Twin Disc sport a Zacks Rank #1, Altra Industrial Motion carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last 60 days, earnings estimates for each of these stocks have improved for the current year. Also, average positive earnings surprise for last four quarters has been 12.81% for Graco, 250.43% for Twin Disc and 5.06% for Altra Industrial Motion.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>