We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Dec 21, we issued an updated research report on The Middleby Corporation (MIDD - Free Report) .
In the past three months, this Zacks Rank #3 (Hold) stock has returned 42.5% compared with the industry’s growth of 18.3%.
Present Scenario
Middleby is poised to benefit from revival of its restaurant business and higher preference for automated cooking systems, beverage systems and ventless products in the quarters ahead. Also, investments in product innovation and technological advancement actions, along with its digital marketing and sales initiatives, are likely to be beneficial.
Also, the company’s acquisition of RAM Fry Dispensers (January 2020) has been enhancing its product offerings in the restaurant automation platform. Also, its Deutsche Beverage buyout (March 2020) is helping it strengthen product offerings in the beverage platform. In addition, the Wild Goose Filling (December 2020) buyout will create strong growth opportunities for Middleby in the canned beverages market. Notably, acquired assets boosted the company’s sales by 2.3% and 1.1% in the second and third quarters of 2020, respectively.
Also, Middleby’s robust liquidity position allows it deal with the difficulties caused by the coronavirus outbreak. In the third quarter of 2020, the company’s free cash flow increased 24.5% to $144.4 million on a year-over-year basis. In addition, its cash and cash equivalents were $220.3 million exiting the quarter, up from $94.5 million at 2019-end.
However, weakness across its end markets on account of the coronavirus outbreak-led issues weighs on its top line in the near term.
Moreover, Middleby’s high-debt profile poses a concern. For instance, in the last three years (2017-2019), its long-term debt rose 22.2% (CAGR). Notably, the metric remained high at $1,809 million exiting the third quarter. Also, the company’s weakening ability to repay its debts is concerning. Notably, its times interest earned at the end of third-quarter was 5.6x, down from 5.8x at the end of second quarter. Any further increase in debt levels can raise its financial obligations.
Stocks to Consider
Some better-ranked stocks from the same space are Altra Industrial Motion Corp. , Applied Industrial Technologies, Inc. (AIT - Free Report) and Dover Corporation (DOV - Free Report) . While Altra Industrial currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial delivered a positive earnings surprise of 50.07%, on average, in the trailing four quarters.
Applied Industrial delivered a positive earnings surprise of 14.68%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Shutterstock
Middleby (MIDD) Displays Solid Prospects Amid Pandemic Scare
On Dec 21, we issued an updated research report on The Middleby Corporation (MIDD - Free Report) .
In the past three months, this Zacks Rank #3 (Hold) stock has returned 42.5% compared with the industry’s growth of 18.3%.
Present Scenario
Middleby is poised to benefit from revival of its restaurant business and higher preference for automated cooking systems, beverage systems and ventless products in the quarters ahead. Also, investments in product innovation and technological advancement actions, along with its digital marketing and sales initiatives, are likely to be beneficial.
Also, the company’s acquisition of RAM Fry Dispensers (January 2020) has been enhancing its product offerings in the restaurant automation platform. Also, its Deutsche Beverage buyout (March 2020) is helping it strengthen product offerings in the beverage platform. In addition, the Wild Goose Filling (December 2020) buyout will create strong growth opportunities for Middleby in the canned beverages market. Notably, acquired assets boosted the company’s sales by 2.3% and 1.1% in the second and third quarters of 2020, respectively.
Also, Middleby’s robust liquidity position allows it deal with the difficulties caused by the coronavirus outbreak. In the third quarter of 2020, the company’s free cash flow increased 24.5% to $144.4 million on a year-over-year basis. In addition, its cash and cash equivalents were $220.3 million exiting the quarter, up from $94.5 million at 2019-end.
However, weakness across its end markets on account of the coronavirus outbreak-led issues weighs on its top line in the near term.
Moreover, Middleby’s high-debt profile poses a concern. For instance, in the last three years (2017-2019), its long-term debt rose 22.2% (CAGR). Notably, the metric remained high at $1,809 million exiting the third quarter. Also, the company’s weakening ability to repay its debts is concerning. Notably, its times interest earned at the end of third-quarter was 5.6x, down from 5.8x at the end of second quarter. Any further increase in debt levels can raise its financial obligations.
Stocks to Consider
Some better-ranked stocks from the same space are Altra Industrial Motion Corp. , Applied Industrial Technologies, Inc. (AIT - Free Report) and Dover Corporation (DOV - Free Report) . While Altra Industrial currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial delivered a positive earnings surprise of 50.07%, on average, in the trailing four quarters.
Applied Industrial delivered a positive earnings surprise of 14.68%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>