Rexnord Corporation ( RXN Quick Quote RXN - Free Report) currently boasts strong prospects on its diversified business structure, solid product portfolio, acquired assets and a sound capital-deployment strategy. Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $5.6 billion. In the past three months, it has gained 46.8% compared with the industry’s growth of 30.1%. Let’s delve into the factors that make investment in the company a smart choice at the moment. Diversified End Markets: The company’s diversified business structure has been enabling it to mitigate the adversities in one end market, with strength across others. It operates in several end markets including mining, food & beverage, aerospace, non-residential construction and global water-infrastructure. It is worth mentioning here that the company is working diligently to expand its growth prospects in the hygienic market. Acquisition Benefits: Rexnord intends to strengthen and expand its businesses through acquisitions. In January 2020, the company acquired Just Manufacturing Co., which has been integrated with the Water Management segment. Notably, acquired assets boosted its sales by 1% in the quarter ended Sep 30, 2020. Further, in December 2020, the company agreed to acquire Canada-based Hadrian Inc. The products provided by Hadrian as well as its innovative technologies will add more value to Rexnord’s Zurn washroom-related product line. Rewards to Shareholders: It remains committed to rewarding shareholders through dividend payouts and share buybacks. In the six months ended September 2020, the company paid dividends worth $19.2 million. Also, it resumed share repurchase activities in the September-ended quarter by repurchasing $15 million worth of shares. Initiatives: Rexnord anticipates benefiting from supply-chain optimization and footprint-repositioning programs (SCOFR), surge in e-commerce business and operational execution. The company noted that SCOFR has been beneficial in reducing facility footprint, restricting capital spending and reduction in structural costs. It expects to realize savings of $12-$14 million in 2021 from the third phase of SCOFR. Other Key Picks
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Industrial Products sector are AGCO Corporation ( AGCO Quick Quote AGCO - Free Report) , Acco Brands Corporation ( ACCO Quick Quote ACCO - Free Report) and Dover Corporation ( DOV Quick Quote DOV - Free Report) . While AGCO currently sports a Zacks Rank #1 (Strong Buy), Acco Brands and Dover carry a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here AGCO delivered a positive earnings surprise of 434.48%, on average, in the trailing four quarters. Acco Brands delivered a positive earnings surprise of 278.49%, on average, in the trailing four quarters. Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters. The Hottest Tech Mega-Trend of All
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