Altra Industrial Motion Corp. ( AIMC Quick Quote AIMC - Free Report) appears to be an attractive investment option in the manufacturing space, with its robust fundamentals and improving operating conditions supporting healthy growth opportunities. It presently sports a Zacks Rank #1 (Strong Buy). Based in Braintree, MA, the company is a specialist in manufacturing motion control, automation and electromechanical power transmission products. It belongs to the Zacks Manufacturing – General Industrial industry, which, in turn, comes under the ambit of the broader Zacks Industrial Products sector. The industry is in the top 29% (with rank of 72) of more than 250 Zacks industries. Below we discussed why Altra Industrial is a worthy investment option. Impressive Results and Projections: In third-quarter 2020, the company’s earnings and sales surpassed estimates by 77.6% and 9.9%, respectively. On a year-over-year basis, earnings increased 26.1% despite a 1.2% fall in revenues. Demand in certain markets was impressive, while cost actions too aided the company. For 2020, the company anticipates non-GAAP earnings to be $2.70-$2.82 per share compared with the previous expectation of $2.05-$2.30. Also, revenues in the year are predicted to be $1,690-$1,710 million versus the earlier expectation of $1,580-$1,640 million. Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be $355-$370 million in 2020. This reflects an increase from the earlier expectation of $305-$330 million. In the year ahead, the company’s diversified business structure (explained below), supply-chain initiatives, solid product portfolio, cross-selling programs, e-commerce capabilities and technological expertise will prove advantageous. End-Market Exposure, A Boon: Altra Industrial has operations in multiple end markets that equips it to offset weakness in some markets with gains in others. In third-quarter 2020, the company witnessed benefits in renewable energy, defense, transportation, factory automation & specialty machinery, turf & garden, and medical equipment markets. The company believes healthy demand in automation markets as well as growth opportunities in transportation and defense markets will be beneficial in the quarters ahead. Capital Allocation: Altra Industrial uses a portion of its capital to reduce debts and enhance shareholder return. Borrowings amounting to $60 million were repaid, while also dividend of 4 cents per share was distributed in the third quarter. We believe improved cash generation will help the company with the above-mentioned actions. It is worth noting here that the company’s board of directors hiked the quarterly dividend rate by 50% to 6 cents per share this October. Price Performance and Earnings Estimate Revisions: Market sentiments have been positive for Altra Industrial for quite some time now. In the past three months, the company’s shares have increased 9.4% compared with the industry’s growth of 4.7%. In addition, the company’s earnings estimates have increased in the past 30 days. Currently, the Zacks Consensus Estimate for earnings is pegged at 69 cents for the fourth quarter, up 38% from the 30-day-ago figure. In addition, the consensus estimate for 2020 has moved 27.1% north to $2.81 and 22.2% to $3.30 for 2021 in the past 30 days.