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.
Timken Boosts Inorganic Growth Trajectory With Rollon Buyout
Read MoreHide Full Article
The Timken Company (TKR - Free Report) , successfully acquired premium engineered linear motion product manufacturer — Rollon Group, on Sep 18, Financial terms of the transaction have not been disclosed. Share price of the company spiked nearly 2% to $49.50 per share, after news of the acquisition surfaced.
The strategic buyout will strengthen Timken’s existing portfolio of industrial brands and is anticipated to be accretive to earnings in the first year of deal completion.
Buyout Story
The aforementioned acquisition will expand Timken’s business footprint in high-growth markets around the globe. Rollon's state-of-the-art linear motion product categories will complement several brands of the company, such as Drives, Lovejoy, Philadelphia Gear and Groeneveld.
Milan, Italy-based Rollon owns non-imitable motion-control technological expertise and is acknowledged for developing custom-made linear motion products for its end-users. The company manufactures and designs telescopic rails, liner guides and linear actuators for various industries, including aerospace, passenger rail, logistics, packaging, automation and medical. The production facilities of the company are located in the United States, Germany and Italy. Rollon anticipates generating approximately $140 million revenues in 2018.
Timken Stock Looks Attractive
Timken manufactures, engineers, and sells gear drives, belts, chain, market bearings, couplings and linear motion products across the globe. In addition to this, the company provides a wide array of repair and powertrain rebuild services in the market. It is poised to bolster its revenues and profitability supported by strategic business acquisitions.
Prior to the Rollon buyout, on Sep 4, the company successfully acquired Cone Drive — a prominent precision drive producer. The acquisition will likely strengthen Timken’s existing power-transmission business. Furthermore, it is expected to fortify the company’s footprints in the emerging market of China.
At present, Timken carries a Zacks Rank #2 (Buy) and flaunts a VGM Score of A. Over the past three months, shares of the company have rallied 11.4%, as against 0.3% loss recorded by the industryit belongs to.
Per our estimates, the company’s year-over-year revenue growth is currently pegged at 21.1% and 9.6% for 2018 and 2019, respectively. On the other hand, year-over-year earnings growth rate is currently projected at 58.6% and 11.6% for 2018 and 2019, respectively. Notably, Timken’s earnings per share are predicted to be up 14.9% over the next three to five years.
Other Stocks to Consider
Some other top-ranked stocks in the industry are listed below:
Global Brass and Copper Holdings, Inc. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 5.65% over the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
TriMas Corporation (TRS - Free Report) carries a Zacks Rank #2. The company delivered an average positive earnings surprise of 2.28% over the last four quarters.
ABB Ltd also holds a Zacks Rank of 2. The company came up with an average positive average earnings surprise of 12.03% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Timken Boosts Inorganic Growth Trajectory With Rollon Buyout
The Timken Company (TKR - Free Report) , successfully acquired premium engineered linear motion product manufacturer — Rollon Group, on Sep 18, Financial terms of the transaction have not been disclosed. Share price of the company spiked nearly 2% to $49.50 per share, after news of the acquisition surfaced.
The strategic buyout will strengthen Timken’s existing portfolio of industrial brands and is anticipated to be accretive to earnings in the first year of deal completion.
Buyout Story
The aforementioned acquisition will expand Timken’s business footprint in high-growth markets around the globe. Rollon's state-of-the-art linear motion product categories will complement several brands of the company, such as Drives, Lovejoy, Philadelphia Gear and Groeneveld.
Milan, Italy-based Rollon owns non-imitable motion-control technological expertise and is acknowledged for developing custom-made linear motion products for its end-users. The company manufactures and designs telescopic rails, liner guides and linear actuators for various industries, including aerospace, passenger rail, logistics, packaging, automation and medical. The production facilities of the company are located in the United States, Germany and Italy. Rollon anticipates generating approximately $140 million revenues in 2018.
Timken Stock Looks Attractive
Timken manufactures, engineers, and sells gear drives, belts, chain, market bearings, couplings and linear motion products across the globe. In addition to this, the company provides a wide array of repair and powertrain rebuild services in the market. It is poised to bolster its revenues and profitability supported by strategic business acquisitions.
Prior to the Rollon buyout, on Sep 4, the company successfully acquired Cone Drive — a prominent precision drive producer. The acquisition will likely strengthen Timken’s existing power-transmission business. Furthermore, it is expected to fortify the company’s footprints in the emerging market of China.
At present, Timken carries a Zacks Rank #2 (Buy) and flaunts a VGM Score of A. Over the past three months, shares of the company have rallied 11.4%, as against 0.3% loss recorded by the industryit belongs to.
Per our estimates, the company’s year-over-year revenue growth is currently pegged at 21.1% and 9.6% for 2018 and 2019, respectively. On the other hand, year-over-year earnings growth rate is currently projected at 58.6% and 11.6% for 2018 and 2019, respectively. Notably, Timken’s earnings per share are predicted to be up 14.9% over the next three to five years.
Other Stocks to Consider
Some other top-ranked stocks in the industry are listed below:
Global Brass and Copper Holdings, Inc. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 5.65% over the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
TriMas Corporation (TRS - Free Report) carries a Zacks Rank #2. The company delivered an average positive earnings surprise of 2.28% over the last four quarters.
ABB Ltd also holds a Zacks Rank of 2. The company came up with an average positive average earnings surprise of 12.03% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>