Shares of Worthington Industries, Inc. (WOR - Free Report) have gained notably in the past three months. Impressive performances and rewards for shareholders as well as portfolio-restructuring actions seem to have boosted sentiments for the stock.
The Columbus, OH-based company belongs to the Zacks Metal Products - Procurement and Fabrication industry — which comes under the ambit of the Zacks Industrial Products sector. The company has a $3.5-billion market capitalization and it currently carries a Zacks Rank #2 (Buy).
In the past three months, the company’s shares have gained 31.8% compared with the industry’s growth of 13.8%. Notably, the S&P 500 has risen 5.7% and the sector has grown 31.9% during the same period.
Factors Influencing the Stock
In the past three months, Worthington has reported impressive results for third-quarter fiscal 2021 (ended February 2021), with earnings surpassing estimates by 8.8%. On a year-over-year basis, the company’s bottom line surged 112.5%, driven by lower costs of sales offsetting a decline in revenues.
The company stands to benefit from its solid product offerings, including laser welded products and pressure cylinders, and zeal to innovate products. Also, with a business spanning 90 countries, it has a solid customer base globally. Moreover, portfolio-restructuring actions (including acquisitions and divestments) taken over time have strengthened the company’s growth opportunities.
Notably, from the beginning of calendar 2021 to date, Worthington has acquired PTEC Pressure Technology GmbH and General Tools & Instruments Company LLC. However, Worthington has disposed of its shares of Nikola, divested the oil and gas equipment business, and sold off Pomona, CA-based Structural Composites Industries facility year to date.
Additionally, the policy of rewarding shareholders handsomely through share buybacks and dividend payments raises the stock’s attractiveness. Notably, its announcement of hiking the quarterly dividend rate by 12% and increasing the share repurchase authorization by 5.6 million shares resulted in a jump in the stock price nearly a week ago.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $4.65 for fiscal 2021 (ending May 2021) and $3.70 for fiscal 2022 (ending May 2022), marking increases of 25.7% and 15.6% from the respective 60-day-ago figures. Also, the estimate for the fourth quarter of fiscal 2021 increased from 96 cents to $1.68 in the past 60 days. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
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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 Worthington Industries, Inc. (WOR - Free Report) have gained notably in the past three months. Impressive performances and rewards for shareholders as well as portfolio-restructuring actions seem to have boosted sentiments for the stock.
The Columbus, OH-based company belongs to the Zacks Metal Products - Procurement and Fabrication industry — which comes under the ambit of the Zacks Industrial Products sector. The company has a $3.5-billion market capitalization and it currently carries a Zacks Rank #2 (Buy).
In the past three months, the company’s shares have gained 31.8% compared with the industry’s growth of 13.8%. Notably, the S&P 500 has risen 5.7% and the sector has grown 31.9% during the same period.
Factors Influencing the Stock
In the past three months, Worthington has reported impressive results for third-quarter fiscal 2021 (ended February 2021), with earnings surpassing estimates by 8.8%. On a year-over-year basis, the company’s bottom line surged 112.5%, driven by lower costs of sales offsetting a decline in revenues.
The company stands to benefit from its solid product offerings, including laser welded products and pressure cylinders, and zeal to innovate products. Also, with a business spanning 90 countries, it has a solid customer base globally. Moreover, portfolio-restructuring actions (including acquisitions and divestments) taken over time have strengthened the company’s growth opportunities.
Notably, from the beginning of calendar 2021 to date, Worthington has acquired PTEC Pressure Technology GmbH and General Tools & Instruments Company LLC. However, Worthington has disposed of its shares of Nikola, divested the oil and gas equipment business, and sold off Pomona, CA-based Structural Composites Industries facility year to date.
Additionally, the policy of rewarding shareholders handsomely through share buybacks and dividend payments raises the stock’s attractiveness. Notably, its announcement of hiking the quarterly dividend rate by 12% and increasing the share repurchase authorization by 5.6 million shares resulted in a jump in the stock price nearly a week ago.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $4.65 for fiscal 2021 (ending May 2021) and $3.70 for fiscal 2022 (ending May 2022), marking increases of 25.7% and 15.6% from the respective 60-day-ago figures. Also, the estimate for the fourth quarter of fiscal 2021 increased from 96 cents to $1.68 in the past 60 days. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
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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