We have issued an updated research report on Colfax Corporation on Oct 9.
This machinery company currently carries a Zacks Rank #3 (Hold), a downward revision from its earlier Zacks Rank #2 (Buy). Its market capitalization is approximately $4.2 billion.
A few growth drivers and certain headwinds, which might influence Colfax, have been discussed below.
Factors Favoring Colfax
Financial Performance & Bottom-Line Outlook: Colfax pulled-off a positive average earnings surprise of 7.91% in the last four quarters. This includes impact of 15.09% earnings beat recorded in the second quarter of 2018. Further, in the reported quarter, the company’s bottom line grew 35.6% year over year on the back of sales growth and lower tax rate.
For 2018, Colfax believes that strengthening Fabrication Technology business, restructuring initiatives, and margin growth in the Air & Gas Handling business will be beneficial. The company increased adjusted earnings per share projection to $2.15-$2.30 from $2.05-$2.20 stated earlier. The new forecast reflects earnings growth potential of at least 24%. Effective tax rate will be 20-22%, below the earlier prediction of 23-24%. Savings from restructuring actions are predicted to be in excess of $30 million.
In the past 60 days, earnings estimates on the stock for 2018 have been increased by two brokerage firms. Estimates for 2019 have been raised by three firms versus lowered by one. Currently, the Zacks Consensus Estimate for earnings is at $2.25 for 2018 and $2.50 for 2019, reflecting growth of 0.9% and 2% from respective 60-day-ago tallies. Further, bottom-line estimates represent year-over-year growth of 29.3% for 2018 and 11.2% for 2019.
Colfax Corporation 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 >>
We have issued an updated research report on Colfax Corporation on Oct 9.
This machinery company currently carries a Zacks Rank #3 (Hold), a downward revision from its earlier Zacks Rank #2 (Buy). Its market capitalization is approximately $4.2 billion.
A few growth drivers and certain headwinds, which might influence Colfax, have been discussed below.
Factors Favoring Colfax
Financial Performance & Bottom-Line Outlook: Colfax pulled-off a positive average earnings surprise of 7.91% in the last four quarters. This includes impact of 15.09% earnings beat recorded in the second quarter of 2018. Further, in the reported quarter, the company’s bottom line grew 35.6% year over year on the back of sales growth and lower tax rate.
For 2018, Colfax believes that strengthening Fabrication Technology business, restructuring initiatives, and margin growth in the Air & Gas Handling business will be beneficial. The company increased adjusted earnings per share projection to $2.15-$2.30 from $2.05-$2.20 stated earlier. The new forecast reflects earnings growth potential of at least 24%. Effective tax rate will be 20-22%, below the earlier prediction of 23-24%. Savings from restructuring actions are predicted to be in excess of $30 million.
In the past 60 days, earnings estimates on the stock for 2018 have been increased by two brokerage firms. Estimates for 2019 have been raised by three firms versus lowered by one. Currently, the Zacks Consensus Estimate for earnings is at $2.25 for 2018 and $2.50 for 2019, reflecting growth of 0.9% and 2% from respective 60-day-ago tallies. Further, bottom-line estimates represent year-over-year growth of 29.3% for 2018 and 11.2% for 2019.
Colfax Corporation 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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