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On Oct 30, we issued an updated research report on Raven Industries, Inc. .
In the past six months, this Zacks Rank #3 (Hold) stock has yielded a return of 17.2% against the industry’s decline of 7.2%.
Existing Scenario
Raven expects that elevated sales volumes, favorable product mix, lower engineering product costs, ongoing pricing actions and reduced taxes will continue driving its bottom-line performance. In addition, investment made in Project Atlas is expected to improve the company’s overall operational efficacy in the near term. Under this project, Raven has adopted a new Oracle-based enterprise resource-planning platform. Over the long term, the company intends to deliver annual earnings growth rate of more than 10%, on a consolidated basis.
Raven expects that stronger demand for recently-launched products will continue to bolster its Applied Technology revenues. Also, stronger sales generated from the CLI acquisition will likely drive the company’s Engineered Films segment’s revenues. Moreover, continued growth in the sales volume of stratospheric balloon business platform and new contract deliveries would likely boost revenues of the company’s Aerostar segment in the upcoming quarters.
Notably, Raven invests roughly $25 million annually in different R&D activities. Investments to introduce new machine control autonomous solutions and next-generation boom-leveling technology will likely strengthen the company’s Applied Technology segment. On the other hand, efforts undertaken to develop additional value-added products, like new blown film, are expected to strengthen Engineered Films segment’s performance in the quarters ahead.
However, of late, escalating cost has been a key cause of concern for the company. In this regard, Raven’s cost of sales flared up 28.4% and 6.9% year over year in fiscal 2018 (ended January 2018) and first-half fiscal 2019, respectively. The company stated that material cost inflation (on account of tariffs imposed over certain products like aluminum, steel, electrical components and fiber) is primarily responsible for this upsurge.
Key Picks
Some better-ranked stocks in the industry are Macquarie Infrastructure Company , Crane Company (CR - Free Report) and Casella Waste Systems, Inc. (CWST - Free Report) . While Macquarie Infrastructure sports a Zacks Rank #1 (Strong Buy), Crane and Casella Waste Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Macquarie Infrastructure surpassed estimates twice in the trailing four quarters, the average positive earnings surprise being 8.05%.
Crane outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 5.04%.
Casella Waste Systems exceeded estimates twice in the preceding four quarters, the average positive earnings surprise being 30.53%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Raven Aerostar Segment's Prospects Bright Despite Risks
On Oct 30, we issued an updated research report on Raven Industries, Inc. .
In the past six months, this Zacks Rank #3 (Hold) stock has yielded a return of 17.2% against the industry’s decline of 7.2%.
Existing Scenario
Raven expects that elevated sales volumes, favorable product mix, lower engineering product costs, ongoing pricing actions and reduced taxes will continue driving its bottom-line performance. In addition, investment made in Project Atlas is expected to improve the company’s overall operational efficacy in the near term. Under this project, Raven has adopted a new Oracle-based enterprise resource-planning platform. Over the long term, the company intends to deliver annual earnings growth rate of more than 10%, on a consolidated basis.
Raven expects that stronger demand for recently-launched products will continue to bolster its Applied Technology revenues. Also, stronger sales generated from the CLI acquisition will likely drive the company’s Engineered Films segment’s revenues. Moreover, continued growth in the sales volume of stratospheric balloon business platform and new contract deliveries would likely boost revenues of the company’s Aerostar segment in the upcoming quarters.
Notably, Raven invests roughly $25 million annually in different R&D activities. Investments to introduce new machine control autonomous solutions and next-generation boom-leveling technology will likely strengthen the company’s Applied Technology segment. On the other hand, efforts undertaken to develop additional value-added products, like new blown film, are expected to strengthen Engineered Films segment’s performance in the quarters ahead.
However, of late, escalating cost has been a key cause of concern for the company. In this regard, Raven’s cost of sales flared up 28.4% and 6.9% year over year in fiscal 2018 (ended January 2018) and first-half fiscal 2019, respectively. The company stated that material cost inflation (on account of tariffs imposed over certain products like aluminum, steel, electrical components and fiber) is primarily responsible for this upsurge.
Key Picks
Some better-ranked stocks in the industry are Macquarie Infrastructure Company , Crane Company (CR - Free Report) and Casella Waste Systems, Inc. (CWST - Free Report) . While Macquarie Infrastructure sports a Zacks Rank #1 (Strong Buy), Crane and Casella Waste Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Macquarie Infrastructure surpassed estimates twice in the trailing four quarters, the average positive earnings surprise being 8.05%.
Crane outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 5.04%.
Casella Waste Systems exceeded estimates twice in the preceding four quarters, the average positive earnings surprise being 30.53%.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>