Regal Beloit Corporation ( RBC Quick Quote RBC - Free Report) seems to be a wise investment option in the manufacturing electronics space, donning healthy growth opportunities. The stock presently carries a Zacks Rank #2 (Buy). This Beloit, WI-based company is a specialist in making mechanical motion control and electrical products. At present, its market capitalization is $4.6 billion. The company belongs to the Zacks Manufacturing - Electronics industry, which comes under the ambit of the broader Zacks Industrial Products sector. The industry is in the top 30% (with rank of 74) of more than 250 Zacks industries. Below we discussed why Regal Beloit is a worthy investment option. Solid Results and Projections: In third-quarter 2020, Regal Beloit’s earnings and sales surpassed estimates by 39.52% and 6.8%, respectively. On a year-over-year basis, earnings increased 28.1% despite a 1.8% fall in revenues. The company is poised to gain from improving order trends, cost-control measures and reorganization actions (80/20) in the quarters ahead. Also, its supply-chain actions and business restructuring moves might aid the company’s performance. For the fourth quarter, Regal Beloit anticipates earnings to be $1.46-$1.66 per share, suggesting an increase of 25% (at the mid-point) from the year-ago quarter. Also, based on the results in the first three quarters of 2020 and the fourth-quarter expectation, earnings in 2020 are expected to be $5.45-$5.65 per share. Order Trends: Improvement in order trends might be beneficial for Regal Beloit in the quarters to come. Regal Beloit noted that October orders increased 11% as against the decline of 6% seen in July. Orders for pumps too improved in the quarter, while orders in North America HVAC exhibited a 22% jump in October compared with only 12% growth in July. Capital Allocation: Regal Beloit effectively utilizes its capital to lower debts, and also to reward shareholders handsomely through dividend payment and share buybacks. Exiting the third quarter, the company lowered its long-term debts by 26.1% from the 2019-end level. Its long-term debt exiting the quarter stood at $840.2 million. As far as the rewards to shareholders are concerned, the company distributed dividends of $36.5 million to shareholders in the first three quarters of 2020. Also, it repurchased shares worth $25 million during the same time frame. Management has decided to resume with its share-buyback program, which was suspended due to the pandemic. It is worth noting here that authorization worth $210 million are still left under the company’s $250-million buyback program announced in October 2019. Price Performance and Earnings Estimate Revisions: Market sentiments have been positive for Regal Beloit for quite some time now. In the past three months, the company’s shares have gained 12.4% as compared with the industry’s growth of 9%. In addition, the company’s earnings estimates have moved north in the past 30 days. Currently, the Zacks Consensus Estimate for earnings is pegged at $1.57 for the fourth quarter, up 31.9% from the 30-day-ago figure. In addition, the consensus estimate for 2020 has moved up 19.3% to $5.57 in the past 30 days and 14.4% to $6.69 for 2021.