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ITT Acquires Habonim, Boosts Industrial Process Offerings
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ITT Inc. (ITT - Free Report) recently announced the completion of the acquisition of privately-owned Habonim for $140 million in cash. The company expects the buyout to be accretive to its EBITDA margin.
ITT’s shares jumped 0.3% yesterday to eventually close the trading session at $76.3.
Headquartered in Kfar HaNassi, Israel, Habonim is engaged in designing and manufacturing valve automation, valves and actuation for biotech and gas distribution sectors. The company, which employs more than 200 personnel, operates in the United States, the Netherlands and Israel.
Inside the Headlines
This acquisition will enable ITT to leverage Habonim’s expertise in ball valves and actuation technologies. The buyout will likely help ITT boost its offerings in cryogenic and hydrogen ball valve space apart from expanding into new end markets.
Habonim will be integrated into ITT’s Industrial Process segment, which specializes in manufacturing engineered fluid-process equipment for diverse industries like oil & gas, mining, power generation and chemical, among others. The segment generated 31.5% of total revenues in fourth-quarter 2021.
Zacks Rank, Price Performance and Earnings Estimate Trend
ITT, with a $6.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). ITT stands to benefit from its diversified business operations and operational execution in the quarters ahead. However, the company expects to incur high capital expenditure, which might affect its short-term liquidity.
Image Source: Zacks Investment Research
Shares of ITT have lost 13.8% compared with the 12% decline of its industry in the past six months.
The Zacks Consensus Estimate for first-quarter 2022 earnings has decreased 13.2% to 99 cents in the past 60 days. Also, earnings estimates for 2022 have moved 3% south to $4.49 during the same period.
In the past 60 days, Griffon’s earnings estimates have increased 19.9% for fiscal 2022 (ending September 2022). The stock has lost 20.2% in the past six months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2 (Buy). It came up with a four-quarter average earnings surprise of 35.1%.
In the past 60 days, Carlisle’s earnings estimates have increased 8.7% for 2022. CSL’s shares have gained 23% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of #2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have declined 6% in the past six months.
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ITT Acquires Habonim, Boosts Industrial Process Offerings
ITT Inc. (ITT - Free Report) recently announced the completion of the acquisition of privately-owned Habonim for $140 million in cash. The company expects the buyout to be accretive to its EBITDA margin.
ITT’s shares jumped 0.3% yesterday to eventually close the trading session at $76.3.
Headquartered in Kfar HaNassi, Israel, Habonim is engaged in designing and manufacturing valve automation, valves and actuation for biotech and gas distribution sectors. The company, which employs more than 200 personnel, operates in the United States, the Netherlands and Israel.
Inside the Headlines
This acquisition will enable ITT to leverage Habonim’s expertise in ball valves and actuation technologies. The buyout will likely help ITT boost its offerings in cryogenic and hydrogen ball valve space apart from expanding into new end markets.
Habonim will be integrated into ITT’s Industrial Process segment, which specializes in manufacturing engineered fluid-process equipment for diverse industries like oil & gas, mining, power generation and chemical, among others. The segment generated 31.5% of total revenues in fourth-quarter 2021.
Zacks Rank, Price Performance and Earnings Estimate Trend
ITT, with a $6.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). ITT stands to benefit from its diversified business operations and operational execution in the quarters ahead. However, the company expects to incur high capital expenditure, which might affect its short-term liquidity.
Image Source: Zacks Investment Research
Shares of ITT have lost 13.8% compared with the 12% decline of its industry in the past six months.
The Zacks Consensus Estimate for first-quarter 2022 earnings has decreased 13.2% to 99 cents in the past 60 days. Also, earnings estimates for 2022 have moved 3% south to $4.49 during the same period.
Stocks to Consider
Some better-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank #2 (Buy). It delivered a four-quarter average earnings surprise of 56.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, Griffon’s earnings estimates have increased 19.9% for fiscal 2022 (ending September 2022). The stock has lost 20.2% in the past six months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2 (Buy). It came up with a four-quarter average earnings surprise of 35.1%.
In the past 60 days, Carlisle’s earnings estimates have increased 8.7% for 2022. CSL’s shares have gained 23% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of #2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have declined 6% in the past six months.