Provider of engineered services and welding solutions, AZZ Inc. (AZZ - Free Report) , announced the buyout of the assets of Enhanced Powder Coating Ltd (EPC), a privately held plating and anodizing services provider, based in Gainesville, TX. However, the terms of the agreement were kept under wraps.
With metallic corrosion costs significantly rising in the North American economy, hot-dip galvanizing serves as an important input for the building and infrastructural sectors. Along with zinc, galvanized steel represents a highly sustainable and cost-effective material solution. Under such a situation, AZZ’s decision to acquire will enhance its metal coating capabilities and enable it to meet rising demand every year.
Company’s Expansion Plans
AZZ intends to pursue continued growth through acquisition of companies or assets that aid expansion of its existing service offerings along with increasing geographic footprint.
Recently in May, AZZ announced the opening of its first powder coat facility in Crowley, TX. The facility features its technology, PowderGALV® for metal coating purposes. The company’s North American presence provides a strategic advantage in a highly competitive market and expanded coatings technology.
With the above initiatives it is evident that the company is on the path of undertaking strategic initiatives to grow Metal Coatings segment with innovative products and services that complement its galvanizing business. AZZ’s Galvanizing Segment provides hot-dip galvanizing and other metal coatings to the steel fabrication industry through 41 facilities located throughout the U.S. and Canada.
Expansion by Peers
Another company in the same space which is looking to expand through restructuring activities is Eaton Corporation plc (ETN - Free Report) , which is investing in R&D programs to introduce new products and power management solutions to reduce energy consumption and carbon emissions. The company is also upgrading the existing systems to maintain its strong position in the global markets.
Price Performance
In the last 12 months, AZZ has underperformed the Zacks categorized Machinery-Electrical industry. The company’s shares declined 12.9% against the industry’s gain of 12.4%.
In the last twelve months, AZZ’s Galvanizing segment encountered a decline in orders due to soft demand from the oil and gas, petrochemical, and solar space, which hurt the operations of the company.
Stocks to Consider
AZZ currently carries a Zacks Rank #3 (Hold). Investors can consider better-ranked stocks like Regal Beloit Corporation (RBC - Free Report) and Smith (A.O.) Corporation (AOS - Free Report) from the same space. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Regal Beloit delivered an average surprise of 1.48% in the trailing four quarters. Its 2017 estimates have risen by 1.90% to $4.82 per share in the last 60 days.
Smith Corporation delivered an average surprise of 4.88% in the trailing four quarters. Its 2017 estimates have risen by 0.96% to $2.10 per share in the last 90 days.
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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.
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.
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Provider of engineered services and welding solutions, AZZ Inc. (AZZ - Free Report) , announced the buyout of the assets of Enhanced Powder Coating Ltd (EPC), a privately held plating and anodizing services provider, based in Gainesville, TX. However, the terms of the agreement were kept under wraps.
With metallic corrosion costs significantly rising in the North American economy, hot-dip galvanizing serves as an important input for the building and infrastructural sectors. Along with zinc, galvanized steel represents a highly sustainable and cost-effective material solution. Under such a situation, AZZ’s decision to acquire will enhance its metal coating capabilities and enable it to meet rising demand every year.
Company’s Expansion Plans
AZZ intends to pursue continued growth through acquisition of companies or assets that aid expansion of its existing service offerings along with increasing geographic footprint.
Recently in May, AZZ announced the opening of its first powder coat facility in Crowley, TX. The facility features its technology, PowderGALV® for metal coating purposes. The company’s North American presence provides a strategic advantage in a highly competitive market and expanded coatings technology.
With the above initiatives it is evident that the company is on the path of undertaking strategic initiatives to grow Metal Coatings segment with innovative products and services that complement its galvanizing business. AZZ’s Galvanizing Segment provides hot-dip galvanizing and other metal coatings to the steel fabrication industry through 41 facilities located throughout the U.S. and Canada.
Expansion by Peers
Another company in the same space which is looking to expand through restructuring activities is Eaton Corporation plc (ETN - Free Report) , which is investing in R&D programs to introduce new products and power management solutions to reduce energy consumption and carbon emissions. The company is also upgrading the existing systems to maintain its strong position in the global markets.
Price Performance
In the last 12 months, AZZ has underperformed the Zacks categorized Machinery-Electrical industry. The company’s shares declined 12.9% against the industry’s gain of 12.4%.
In the last twelve months, AZZ’s Galvanizing segment encountered a decline in orders due to soft demand from the oil and gas, petrochemical, and solar space, which hurt the operations of the company.
Stocks to Consider
AZZ currently carries a Zacks Rank #3 (Hold). Investors can consider better-ranked stocks like Regal Beloit Corporation (RBC - Free Report) and Smith (A.O.) Corporation (AOS - Free Report) from the same space. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Regal Beloit delivered an average surprise of 1.48% in the trailing four quarters. Its 2017 estimates have risen by 1.90% to $4.82 per share in the last 60 days.
Smith Corporation delivered an average surprise of 4.88% in the trailing four quarters. Its 2017 estimates have risen by 0.96% to $2.10 per share in the last 90 days.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
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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