Industrial Products is currently one of the favored sectors — occupying the sixth position — among the 16 Zacks sectors. It yielded 9.1% return in the past year.
It's worth noting here that the sector's earnings are predicted to increase 24.3% in 2018 on revenue growth of 9.5%. Of many indicators, few supporting the sector's growth are discussed below:
Prospering global economy, as well as advancing U.S. economy — predicted to grow 2.9% in 2018 by the International Monetary Fund — supports growth of the sector. Also, a healthy demand for U.S.-made machinery, expanding manufacturing sector and healthy job market is a boon. Industrial production is also growing impressively — a 4.2% growth has been recorded in July.
Investors interested in gaining exposure in the sector may choose stocks that have Zacks Rank #1 (Strong Buy) or #2 (Buy). Of many investment-friendly options, we believe that adding Altra Industrial Motion Corp. to the portfolio will be a smart choice. The stock currently sports a Zacks Rank #1 and has a favorable VGM Score of A.
Let's delve deeper and discuss why Altra Industrial Motion is a suitable investment option.
Bottom-Line Performance & Projections: Altra Industrial Motion's financial performance has remained better than expected in three out of the last four quarters. Average earnings surprise is a positive 4.01%. This average includes the impact of 7.58% earnings beat recorded in the second quarter of 2018. On a year-over-year basis, the company's bottom line in the second quarter increased 24.6% on the back of sales and margin improvement.
For 2018, Altra Industrial Motion anticipates gaining from solid organic sales growth opportunities, strengthening industrial economy, and business combination with Fortive Corporation's (FTV - Free Report) Automation and Specialty business. It increased its earnings per share (non-GAAP) guidance from $2.36-$2.49 expected earlier to $2.45-$2.55.
Driven by solid performance and impressive outlook, earnings estimates on the company have been increased in the past 60 days. Currently, the Zack Consensus Estimate for earnings is pegged at $2.54 for 2018 and $2.88 for 2019, reflecting growth of 2.8%, and 2.5% from the respective 60-day-ago tallies.
Altra Industrial Motion Corp. Price and Consensus
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 >>
Industrial Products is currently one of the favored sectors — occupying the sixth position — among the 16 Zacks sectors. It yielded 9.1% return in the past year.
It's worth noting here that the sector's earnings are predicted to increase 24.3% in 2018 on revenue growth of 9.5%. Of many indicators, few supporting the sector's growth are discussed below:
Prospering global economy, as well as advancing U.S. economy — predicted to grow 2.9% in 2018 by the International Monetary Fund — supports growth of the sector. Also, a healthy demand for U.S.-made machinery, expanding manufacturing sector and healthy job market is a boon. Industrial production is also growing impressively — a 4.2% growth has been recorded in July.
Investors interested in gaining exposure in the sector may choose stocks that have Zacks Rank #1 (Strong Buy) or #2 (Buy). Of many investment-friendly options, we believe that adding Altra Industrial Motion Corp. to the portfolio will be a smart choice. The stock currently sports a Zacks Rank #1 and has a favorable VGM Score of A.
Let's delve deeper and discuss why Altra Industrial Motion is a suitable investment option.
Bottom-Line Performance & Projections: Altra Industrial Motion's financial performance has remained better than expected in three out of the last four quarters. Average earnings surprise is a positive 4.01%. This average includes the impact of 7.58% earnings beat recorded in the second quarter of 2018. On a year-over-year basis, the company's bottom line in the second quarter increased 24.6% on the back of sales and margin improvement.
For 2018, Altra Industrial Motion anticipates gaining from solid organic sales growth opportunities, strengthening industrial economy, and business combination with Fortive Corporation's (FTV - Free Report) Automation and Specialty business. It increased its earnings per share (non-GAAP) guidance from $2.36-$2.49 expected earlier to $2.45-$2.55.
Driven by solid performance and impressive outlook, earnings estimates on the company have been increased in the past 60 days. Currently, the Zack Consensus Estimate for earnings is pegged at $2.54 for 2018 and $2.88 for 2019, reflecting growth of 2.8%, and 2.5% from the respective 60-day-ago tallies.
Altra Industrial Motion Corp. Price and Consensus
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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