On Dec 13, Lindsay Corporation (LNN - Free Report) was downgraded to a Zacks Rank #4 (Sell).
The downgrade underlines negative estimate revisions following the disappointing fourth-quarter fiscal 2017 results and rising near-term headwinds.
Notably, Lindsay’s share price movement has not been much impressive since it reported the fiscal fourth-quarter results. The company’s shares have underperformed the S&P 500 index over the past two months. While the index has gained 4.6%, the stock has recorded 2% growth. It has also underperformed the industry’s growth of 14.5% during the same time frame.
Key Factors
Lindsay’s bottom line in the fiscal fourth quarter was adversely impacted by a higher effective income tax. Both top and bottom lines missed the Zacks Consensus Estimate. Lower infrastructure spending, challenging political and economic conditions, and currency headwinds are expected to thwart the company’s performance in the near term as well.
Notably, Lindsay’s Road Zipper System projects will be impacted by insignificant increase in spending for surface transportation projects under the current Federal Highway Bill, the FAST (Fixing America's Surface Transportation) Act.
Moreover, in the international markets, regional political and economic factors, currency conditions and local competition have given rise to a challenging environment for Lindsay. Additionally, the company’s international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.
Further, its estimates have recorded a downtrend over the past 60 days. For fiscal 2017, estimates moved down roughly 1.3% to $2.94. The Zacks Consensus Estimate for fiscal 2018 also declined 4.6% over the same time period to $3.55.
Stocks to Consider
Some better-ranked players in the industry are Deere & Co. (DE - Free Report) , Kubota Corp. (KUBTY - Free Report) and ACCO Brands Corp. (ACCO - Free Report) . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 46.6%, year to date.
Kubota Corporation has a long-term earnings growth rate of 10.7%. So far this year, shares of the company have gained 30.6%.
ACCO Brands has a long-term earnings growth rate of 10%. The stock has rallied 46.9% in the year so far.
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On Dec 13, Lindsay Corporation (LNN - Free Report) was downgraded to a Zacks Rank #4 (Sell).
The downgrade underlines negative estimate revisions following the disappointing fourth-quarter fiscal 2017 results and rising near-term headwinds.
Notably, Lindsay’s share price movement has not been much impressive since it reported the fiscal fourth-quarter results. The company’s shares have underperformed the S&P 500 index over the past two months. While the index has gained 4.6%, the stock has recorded 2% growth. It has also underperformed the industry’s growth of 14.5% during the same time frame.
Key Factors
Lindsay’s bottom line in the fiscal fourth quarter was adversely impacted by a higher effective income tax. Both top and bottom lines missed the Zacks Consensus Estimate. Lower infrastructure spending, challenging political and economic conditions, and currency headwinds are expected to thwart the company’s performance in the near term as well.
Notably, Lindsay’s Road Zipper System projects will be impacted by insignificant increase in spending for surface transportation projects under the current Federal Highway Bill, the FAST (Fixing America's Surface Transportation) Act.
Moreover, in the international markets, regional political and economic factors, currency conditions and local competition have given rise to a challenging environment for Lindsay. Additionally, the company’s international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.
Further, its estimates have recorded a downtrend over the past 60 days. For fiscal 2017, estimates moved down roughly 1.3% to $2.94. The Zacks Consensus Estimate for fiscal 2018 also declined 4.6% over the same time period to $3.55.
Stocks to Consider
Some better-ranked players in the industry are Deere & Co. (DE - Free Report) , Kubota Corp. (KUBTY - Free Report) and ACCO Brands Corp. (ACCO - Free Report) . While Deere sports a Zacks Rank of 1 (Strong Buy), Kubota Corporation and ACCO Brands carry a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 46.6%, year to date.
Kubota Corporation has a long-term earnings growth rate of 10.7%. So far this year, shares of the company have gained 30.6%.
ACCO Brands has a long-term earnings growth rate of 10%. The stock has rallied 46.9% in the year so far.
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 >>
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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