Chart Industries, Inc. (GTLS - Free Report) can be a good investment option in the manufacturing industries. The company has strong fundamentals and growth prospects. Its earnings estimates too have been revised upward, reflecting bullish sentiments for the stock.
The company is based in Ball Ground, GA, and has a market capitalization of $1.7 billion. It belongs to the Zacks Manufacturing – General Industrial industry, which is part of the broader Zacks Industrial Products sector.
The company presently has a Zacks Rank #2 (Buy).
Below we have discussed why it is worth investing in Chart Industries.
Multiple Top-Line Tailwinds: Though the pandemic-led woes remain, Chart Industries’ well-diversified business structure might prove beneficial in the quarters ahead. It is engaged in providing critical engineered equipment, air cooled heat exchangers and other products. Also, it has exposure in Asia, the Middle East, Europe, Latin America and the United States.
The company seems well-poised to benefit from solid orders in the second quarter of 2020. Notably, orders from 67 new customers were booked in April and May. Also, it received a contract for the supply of LNG equipment from Risco Energy Solutions. Further, Chart Industries completed its field service and repair contract with an industrial client.
Other Tailwinds: The company’s healthy supply chain and focus on driving operational excellence are boons. Also, its cost-reduction measures in the present difficult environment will likely help it deal with the pandemic-related financial stress. Notably, its cost-savings amounted to $60.7 million (annualized) from the start of 2020 till May 29.
Also, the company’s net cash generated from operating activities of $15.5 million in April 2020 is reflective of healthy cash generation and earnings. Also, the extension of supplier terms is added boon.
Buyouts: The company believes in gaining market share, enhancing product lines and boosting growth opportunities through acquisitions. One of the most important buyouts for Chart Industries was that of Air-X-Changers (“AXC”) in July 2019.
In first-quarter 2020, the AXC buyout substantially boosted sales of Chart Industries’ E&C FinFans segment. Notably, the segment’s sales (excluding the impact of the AXC buyout) marked a year-over-year decline of $24.7 million.
Share Price Performance & Earnings Estimates Trend: Market sentiments have been positive for Chart Industries for quite some time now. The company’s shares have surged 75% in the past three months compared with the industry’s 15.9% growth.
Also, the company’s earnings estimates have been revised upward in the past 60 days. Currently, the Zacks Consensus Estimate for its earnings is pegged at 45 cents for the second quarter of 2020, up 4.7% from the 60-day-ago figures.
In addition, the consensus estimate for 2020 has been increased by 3.6% to $2.58 in the past 60 days, while that for 2021 has been raised by 4% to $3.35.
Chart Industries, Inc. 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 >>
Chart Industries, Inc. (GTLS - Free Report) can be a good investment option in the manufacturing industries. The company has strong fundamentals and growth prospects. Its earnings estimates too have been revised upward, reflecting bullish sentiments for the stock.
The company is based in Ball Ground, GA, and has a market capitalization of $1.7 billion. It belongs to the Zacks Manufacturing – General Industrial industry, which is part of the broader Zacks Industrial Products sector.
The company presently has a Zacks Rank #2 (Buy).
Below we have discussed why it is worth investing in Chart Industries.
Multiple Top-Line Tailwinds: Though the pandemic-led woes remain, Chart Industries’ well-diversified business structure might prove beneficial in the quarters ahead. It is engaged in providing critical engineered equipment, air cooled heat exchangers and other products. Also, it has exposure in Asia, the Middle East, Europe, Latin America and the United States.
The company seems well-poised to benefit from solid orders in the second quarter of 2020. Notably, orders from 67 new customers were booked in April and May. Also, it received a contract for the supply of LNG equipment from Risco Energy Solutions. Further, Chart Industries completed its field service and repair contract with an industrial client.
Other Tailwinds: The company’s healthy supply chain and focus on driving operational excellence are boons. Also, its cost-reduction measures in the present difficult environment will likely help it deal with the pandemic-related financial stress. Notably, its cost-savings amounted to $60.7 million (annualized) from the start of 2020 till May 29.
Also, the company’s net cash generated from operating activities of $15.5 million in April 2020 is reflective of healthy cash generation and earnings. Also, the extension of supplier terms is added boon.
Buyouts: The company believes in gaining market share, enhancing product lines and boosting growth opportunities through acquisitions. One of the most important buyouts for Chart Industries was that of Air-X-Changers (“AXC”) in July 2019.
In first-quarter 2020, the AXC buyout substantially boosted sales of Chart Industries’ E&C FinFans segment. Notably, the segment’s sales (excluding the impact of the AXC buyout) marked a year-over-year decline of $24.7 million.
Share Price Performance & Earnings Estimates Trend: Market sentiments have been positive for Chart Industries for quite some time now. The company’s shares have surged 75% in the past three months compared with the industry’s 15.9% growth.
Also, the company’s earnings estimates have been revised upward in the past 60 days. Currently, the Zacks Consensus Estimate for its earnings is pegged at 45 cents for the second quarter of 2020, up 4.7% from the 60-day-ago figures.
In addition, the consensus estimate for 2020 has been increased by 3.6% to $2.58 in the past 60 days, while that for 2021 has been raised by 4% to $3.35.
Chart Industries, Inc. 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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