Back to top
Read MoreHide Full Article

You may not have heard of John Bean Tech (JBT - Free Report) but you have probably been an indirect customer. Let’s take a look at this stock and why I have made it the Bull of the Day.

Consistent Beats

JBT has a great earnings track record.  The company has topped that Zacks Consensus Estimate in each of the last four quarters.  These aren’t small beats either, with the average positive earnings surprise coming in at +21%.

The most recent quarter saw a beat of $0.18 when the company reported EPS of $0.85 when the Zacks Consensus Estimate was calling for $0.67.  That translated to a positive earnings surprise of 26.8%.

Description

John Bean Technologies a leading global solutions provider to the food processing and air transportation industries. The Company designs, manufactures, tests and services technologically sophisticated systems and products for regional and multi-national industrial food processing customers through its JBT FoodTech segment and for domestic and international air transportation customers through its JBT AeroTech segments.

New Coverage

Following a secondary offering of about 2M shares, JBT saw new coverage from a few brokerages.  On March 13 the stock was rated a new Outperform at Wells Fargo and on the same day Robert W. Baird started coverage as well.

About a month later on April 10, JBT was initiated on as an outperform at BMO Capital Markets. The brokerage put a $105 price target on the stock at that time.

On April 12, CL King upgraded the stock to Buy.

Estimates

The Zacks Consensus Estimate has risen over the last 60 days.  The number moved from $2.94 60 days ago to the present level of $3.05.

The Zacks Consensus Estimate for 2018 has also moved higher.  60 days ago the number was $3.35 and it has since moved to $3.56.

Valuation

When you have a stock that has a good history of beating the number, seeing earnings estimates increases you usually have a big multiple.  That is the case here with JBT as the stock trades at 34x trailing and 28x forward earnings estimates.  The price to book is also very stiff, at 14x while the price to sales is only 2x.

For a food delivery and logistics company, JBT is still growing the top line at about 15% per year and that translates into earnings growth of more than 20% per year.

 

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.  See these critical buys and sells free >> 

 




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


John Bean Technologies Corporation (JBT) - free report >>


More from Zacks Bull of the Day

You May Like