Universal Stainless& Alloy Products, Inc. ( USAP Quick Quote USAP - Free Report) recently announced a 3-10% hike on base price on all products. For all new orders, the rise in price goes into effect immediately. The company added that current material and energy surcharges will remain in effect.
Universal Stainless stated that considering the sharp inflationary cost hikes impacting nearly all areas of business, this move was necessary. The company expects this adjusted pricing to help counter the higher cost burden.
It will continue to take the necessary actions to manage its organization and maintain its class leading customer service levels and exceptional production quality standard, the company noted.
Shares of Universal Stainless have jumped 12.8% in the past year compared with a 40.1% rise of the
industry. Image Source: Zacks Investment Research
The company, on its last earnings call, stated that it is focused on restoring its profitability and controlling working capital as operations speed up to meet its rapidly growing backlog. Third quarter results are further evidence of progress in this effort. It is also commissioning a new vacuum arc re-melting furnace and installing expanded vacuum induction melting capability equipped to support the growth of premium products and continuously improve the efficiency of its melt operations. Its balance sheet remains strong to support the strategic initiatives.
While current supply chain challenges will likely persist, it remains determined to make further progress in the fourth quarter and take full advantage of recovering markets, especially aerospace. The company will continue to rely on the commitment of its team, the support of its customers and its focus on providing critical products to its markets to do so.
Zacks Rank & Key Picks
Universal Stainless currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are
Albemarle Corporation ( ALB Quick Quote ALB - Free Report) , Commercial Metals Company ( CMC Quick Quote CMC - Free Report) and AdvanSix Inc. ( ASIX Quick Quote ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.4% upward in the past 60 days. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 22.1%. ALB has rallied around 30.6% over a year.
Commercial Metals, flaunting a Zacks Rank #1 at present, has a projected earnings growth rate of 10.5% for the current fiscal year. CMC's consensus estimate for the current fiscal year has been revised 6.6% upward in the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It delivered a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 77.8% over a year.
AdvanSix has a projected earnings growth rate of 3.9% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 46.9%. ASIX has rallied 108.3% over a year. It currently carries a Zacks Rank #2 (Buy).