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Here's Why it is Worth Investing in Barnes Group (B) Now

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Barnes Group, Inc. (B - Free Report) currently boasts robust growth prospects on strength across its end markets, solid product portfolio, operational excellence initiatives and a sound capital-deployment strategy.

Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $2.7 billion. In the past six months, it has gained 21% almost in line with the industry’s growth of 21.5%.

Let’s delve into the factors that make investment in the company a smart choice at the moment.

Strength in Gimatic business: Strong momentum in Barnes Group’s Gimatic business, supported by its patented technologies, intellectual property-based solutions and strong market position, is likely to drive its performance in the quarters ahead. Notably, the business is well positioned to benefit in the long term from the rising adoption of robotic technologies in end markets.

Rewards to Shareholders: The company remains focused on rewarding shareholders through share buyback programs and dividend payouts. In 2020, Barnes Group returned $48 million of cash to shareholders through dividend payouts and share buybacks. Also, in the first quarter of 2021, it paid out dividends worth $8.1 million to shareholders but refrained from buying back any shares. However, the company expects to resume some share repurchase activity to offset equity compensation dilution.

Initiatives: Barnes Group’s focus on investing in product innovation, along with its commercial and operational excellence initiatives, is likely act as a tailwind over the long term. Also, its focus on supply-chain optimization and cost-management initiatives is likely to help it maintain a healthy margin performance.

Estimate Revisions: Analysts have increasingly become bullish on the company, as evident from positive earnings estimate revisions. Notably, in the past seven days, the Zacks Consensus Estimate for its 2021 earnings has trended up from $1.87 to $1.91 on one upward estimate revision against none downward. Further, estimates for its 2022 earnings have increased from $2.45 to $2.50 on one upward estimate revision versus none downward.

Other Stocks to Consider

Some other top-ranked stocks are A. O. Smith Corporation (AOS - Free Report) , Eaton Corporation, plc (ETN - Free Report) and AZZ Inc. (AZZ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A. O. Smith delivered a positive earnings surprise of 14.84%, on average, in the trailing four quarters.

Eaton delivered a positive earnings surprise of 16.78%, on average, in the trailing four quarters.

AZZ delivered an earnings surprise of 5.08% in the last reported quarter.

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In-Depth Zacks Research for the Tickers Above

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A. O. Smith Corporation (AOS) - free report >>

AZZ Inc. (AZZ) - free report >>

Eaton Corporation, PLC (ETN) - free report >>

Barnes Group, Inc. (B) - free report >>