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Bear of the Day: Douglas Dynamics (PLOW)

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Douglas Dynamics (PLOW - Free Report) is an $850 million designer and manufacturer of snow and ice control equipment for light trucks. Their product lines includes snowplows and sand/salt spreaders and related parts and accessories.
 
The Milwaukee-based company sells its products under the Western, Fisher and Blizzard brands through a distributor network, primarily consisting of truck equipment distributors located throughout the Midwest, East and Northeast regions of the United States as well as all provinces of Canada.
 
Douglas Dynamics sells its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial, municipal and residential areas. 
 
The reason this stalwart of winter precipitation navigation is showing up in the cellar of the Zacks Rank is that estimates have slipped recently.
 
While TTM revenues for the past 5 years have been climbing a moutanin of snow, eclipsing $400 million at the end of 2015, they recently seemed to have peaked at $510 million in the June quarter.
 
And the company's Q3 report on Nov 5 showed one of the first hiccups in a while with a 4.3% earnings miss.
 
In the previous 3 quarters, the company surpassed consensus EPS estimates by an average of 38%. Since the miss and growth rate concerns, EPS estimates for 2018 in the past 30 days have fallen from $2.12 to $2.00.
 
And 2019 full-year estimates have dropped from $2.08 to $1.92.
 
When I ran snow removal operations for a small airport where I learned to fly in Illinois a few decades ago, the Western hydraulic plow mechanics were essential workhorses on various sizes of plow trucks.
 
While the growth story may have appeared to peak recently, Douglass remains a key player in professional snow removal equipment.
 
Since PLOW shares collapsed after their last earnings report, they seem to have found support at the December and February cluster of lows near $37.
 
This looks like a key place for PLOW bulls to make a stand and eventually profit.
 
But let's watch the estimates picture as we enter the heart of winter.
 
If PLOW becomes a buy soon, the Zacks Rank will let you know.
 
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