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EnPro (NPO) Gains 29% YTD: What's Driving the Stock's Rally?
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Shares of EnPro Industries, Inc. (NPO - Free Report) have increased notably since the start of 2021. Solid fundamentals, healthy financial performance and solid growth prospects seem to have boosted sentiments for the stock.
The Charlotte, NA-based company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 22% (with a rank of 56) of more than 250 Zacks industries. EnPro has a $2-billion market capitalization and it currently sports a Zacks Rank #1 (Strong Buy).
Year to date, the company’s shares have gained 28.6% compared with the industry’s growth of 12%. Notably, the S&P 500 has risen 14.8% and the sector has grown 12.9% during the same period.
Image Source: Zacks Investment Research
Factors Influencing the Stock
Year to date, EnPro reported results for the fourth quarter of 2020 and the first quarter of 2021. Earnings beat was 143.14% for fourth-quarter 2020 and 44.21% for first-quarter 2021, with respective sales surprise of 20.21% and 6.64%. In the last reported quarter, the company’s bottom line expanded 42.7% year over year.
Impressive performance and healthy growth opportunities seem to have favored the hike in the company’s stock price. Notably, its efforts to expand its presence in life sciences, semiconductor and industrial-technology-based sectors are tailwinds. Its business transformation actions and new brand image also have grown its appeal. Strengthening demand, technological advancements and cost actions too are aiding the company.
In addition, favorable market trends, including heightened safety and environmental regulations, space exploration, oil and gas production, and others, are driving forces for EnPro. Further, its commitment toward rewarding shareholders through dividends impresses shareholders.
For 2021, EnPro anticipates adjusted earnings of $4.74-$5.08 per share, higher than $4.32-$4.66 mentioned previously. Revenues for the year are expected to be $1.05-$1.10 billion, up from $1.04-$1.08 billion stated earlier. Adjusted earnings before interest, taxes, depreciation and amortization are anticipated to be $190-$200 million, up from the previously stated $178-$188 million.
The Zacks Consensus Estimate for the company’s earnings is pegged at $4.96 for 2021 and $5.60 for 2022, marking an increase of 8.1% and 4.5% from the respective 60-day-ago figures. Also, the consensus estimate for the second quarter improved from $1.22 to $1.24. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
EnPro’s performance in the year-to-date period has been better than Applied Industrial Technologies, Inc. (AIT - Free Report) , Tennant Company (TNC - Free Report) and Barnes Group, Inc. (B - Free Report) . The companies belong to the same industry as EnPro. In the past three months, Applied Industrial’s shares have gained 14.1%, whereas that of Tennant and Barnes rose 13.4% and 1.3%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
EnPro (NPO) Gains 29% YTD: What's Driving the Stock's Rally?
Shares of EnPro Industries, Inc. (NPO - Free Report) have increased notably since the start of 2021. Solid fundamentals, healthy financial performance and solid growth prospects seem to have boosted sentiments for the stock.
The Charlotte, NA-based company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 22% (with a rank of 56) of more than 250 Zacks industries. EnPro has a $2-billion market capitalization and it currently sports a Zacks Rank #1 (Strong Buy).
Year to date, the company’s shares have gained 28.6% compared with the industry’s growth of 12%. Notably, the S&P 500 has risen 14.8% and the sector has grown 12.9% during the same period.
Factors Influencing the Stock
Year to date, EnPro reported results for the fourth quarter of 2020 and the first quarter of 2021. Earnings beat was 143.14% for fourth-quarter 2020 and 44.21% for first-quarter 2021, with respective sales surprise of 20.21% and 6.64%. In the last reported quarter, the company’s bottom line expanded 42.7% year over year.
Impressive performance and healthy growth opportunities seem to have favored the hike in the company’s stock price. Notably, its efforts to expand its presence in life sciences, semiconductor and industrial-technology-based sectors are tailwinds. Its business transformation actions and new brand image also have grown its appeal. Strengthening demand, technological advancements and cost actions too are aiding the company.
In addition, favorable market trends, including heightened safety and environmental regulations, space exploration, oil and gas production, and others, are driving forces for EnPro. Further, its commitment toward rewarding shareholders through dividends impresses shareholders.
For 2021, EnPro anticipates adjusted earnings of $4.74-$5.08 per share, higher than $4.32-$4.66 mentioned previously. Revenues for the year are expected to be $1.05-$1.10 billion, up from $1.04-$1.08 billion stated earlier. Adjusted earnings before interest, taxes, depreciation and amortization are anticipated to be $190-$200 million, up from the previously stated $178-$188 million.
The Zacks Consensus Estimate for the company’s earnings is pegged at $4.96 for 2021 and $5.60 for 2022, marking an increase of 8.1% and 4.5% from the respective 60-day-ago figures. Also, the consensus estimate for the second quarter improved from $1.22 to $1.24. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
EnPro Industries Price and Consensus
EnPro Industries price-consensus-chart | EnPro Industries Quote
EnPro’s Performance Versus Industry Players
EnPro’s performance in the year-to-date period has been better than Applied Industrial Technologies, Inc. (AIT - Free Report) , Tennant Company (TNC - Free Report) and Barnes Group, Inc. (B - Free Report) . The companies belong to the same industry as EnPro. In the past three months, Applied Industrial’s shares have gained 14.1%, whereas that of Tennant and Barnes rose 13.4% and 1.3%, respectively.
Notably, Applied Industrial and Tennant currently sport a Zacks Rank #1, whereas Barnes presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>