Shares of Altra Industrial Motion Corp. have gained notably in the past three months. Growth opportunities within certain end-markets, solid product offerings, debt-reduction actions and increased financial projections seem to have boosted sentiments for the stock.
The Braintree, MA-based company belongs to the Zacks Manufacturing - General Industrial industry — which comes under the ambit of the Zacks Industrial Products sector. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, Altra Industrial’s shares have gained 30.2% compared with the industry’s growth of 12.9%. Notably, the S&P 500 has risen 7.3% and the sector has grown 13% during the same period.
Factors Influencing the Stock
In the past three months, Altra Industrial has reported results for second-quarter 2020, with an earnings beat of 76.47%. Also, sales in the quarter surpassed estimates by 6.71%. The company is impressed with its growth opportunities in the food processing, robotics, medical equipment and factory automation end markets.
For 2020, it revised its financial projection higher from the previously mentioned $1,540-$1,620 million to $1,580-$1,640 million for sales. The projections for earnings too were increased from the earlier mentioned $1.67-$2.03 to $2.05-$2.30.
Also, slowly recovering manufacturing activities in the United States amid the pandemic-stricken environment are healthy signs of improving operating conditions for manufacturing companies. The aforementioned tailwinds along with the overall revival in the country’s stock market might have supported the company’s price improvement.
Further, Altra Industrial’s diversified business structure, supply-chain initiatives, solid product offerings and e-commerce capabilities are other tailwinds. Also, the company’s healthy liquidity position, and efforts to reduce debts and manage costs are advantageous.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.21 for 2020 and $2.70 for 2021, marking an increase of 15.7% and 8% from the respective 60-day-ago figures. Notably, three upward revisions in earnings estimates were recorded for 2020 and two for 2021. There was no downward revision for both 2020 and 2021.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of Altra Industrial Motion Corp. have gained notably in the past three months. Growth opportunities within certain end-markets, solid product offerings, debt-reduction actions and increased financial projections seem to have boosted sentiments for the stock.
The Braintree, MA-based company belongs to the Zacks Manufacturing - General Industrial industry — which comes under the ambit of the Zacks Industrial Products sector. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, Altra Industrial’s shares have gained 30.2% compared with the industry’s growth of 12.9%. Notably, the S&P 500 has risen 7.3% and the sector has grown 13% during the same period.
Factors Influencing the Stock
In the past three months, Altra Industrial has reported results for second-quarter 2020, with an earnings beat of 76.47%. Also, sales in the quarter surpassed estimates by 6.71%. The company is impressed with its growth opportunities in the food processing, robotics, medical equipment and factory automation end markets.
For 2020, it revised its financial projection higher from the previously mentioned $1,540-$1,620 million to $1,580-$1,640 million for sales. The projections for earnings too were increased from the earlier mentioned $1.67-$2.03 to $2.05-$2.30.
Also, slowly recovering manufacturing activities in the United States amid the pandemic-stricken environment are healthy signs of improving operating conditions for manufacturing companies. The aforementioned tailwinds along with the overall revival in the country’s stock market might have supported the company’s price improvement.
Further, Altra Industrial’s diversified business structure, supply-chain initiatives, solid product offerings and e-commerce capabilities are other tailwinds. Also, the company’s healthy liquidity position, and efforts to reduce debts and manage costs are advantageous.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.21 for 2020 and $2.70 for 2021, marking an increase of 15.7% and 8% from the respective 60-day-ago figures. Notably, three upward revisions in earnings estimates were recorded for 2020 and two for 2021. There was no downward revision for both 2020 and 2021.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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