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Encore Wire (WIRE) Up 73% in a Year: What's Driving It?
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Shares of Encore Wire Corporation (WIRE - Free Report) have surged 72.9% in a year. The industry-leading manufacturer of a broad range of copper and aluminum electrical wire and cables has outperformed the industry’s growth of 16.3% in the same time frame. The Industrial Products sector and S&P 500 have declined 17.5% and 8.5% in the same period, respectively.
Let’s look into the factors driving this currently Zacks Rank #1 (Strong Buy) stock.
Image Source: Zacks Investment Research
What’s Working in WIRE’s Favor?
Encore Wire’s stock is steadily gaining from its solid quarterly performances, stable demand and higher volumes. WIRE boasts a streak of delivering a year-over-year improvement in both its top and bottom-line performances over the last eight quarters. Its earnings surpassed the Zacks Consensus Estimate in eight straight quarters.
WIRE delivered a 31% year-over-year improvement in its net sales for the six months ended Jun 30, 2022, to $1.561 billion. Encore Wire reported higher copper and aluminum volumes in the first half of 2022. Volumes shipped improved further in the second quarter of 2022 from the first-quarter level. This marks the third consecutive quarter of volume growth, driven by continued increased demand for data center, healthcare and renewable product solutions.
With new capacity coming online this year, WIRE remains well-positioned to capture incremental market share and volume growth in the current economic environment. Its superior order fill rates, vertically integrated business model, cost-reduction actions and effective pricing efforts are expected to contribute to its margin performance.
Earnings estimates for Encore Wire have been northbound over the past 60 days. The Zacks Consensus Estimate for 2022 has increased around 40%, while the same for 2023 has gone up 6%. The favorable estimate revisions instill investor confidence in the stock.
Other Stocks to Consider
Some other top-ranked stocks in the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Greif, Inc. (GEF - Free Report) and Valmont Industries, Inc. (VMI - Free Report) .
Image: Bigstock
Encore Wire (WIRE) Up 73% in a Year: What's Driving It?
Shares of Encore Wire Corporation (WIRE - Free Report) have surged 72.9% in a year. The industry-leading manufacturer of a broad range of copper and aluminum electrical wire and cables has outperformed the industry’s growth of 16.3% in the same time frame. The Industrial Products sector and S&P 500 have declined 17.5% and 8.5% in the same period, respectively.
Let’s look into the factors driving this currently Zacks Rank #1 (Strong Buy) stock.
Image Source: Zacks Investment Research
What’s Working in WIRE’s Favor?
Encore Wire’s stock is steadily gaining from its solid quarterly performances, stable demand and higher volumes. WIRE boasts a streak of delivering a year-over-year improvement in both its top and bottom-line performances over the last eight quarters. Its earnings surpassed the Zacks Consensus Estimate in eight straight quarters.
WIRE delivered a 31% year-over-year improvement in its net sales for the six months ended Jun 30, 2022, to $1.561 billion. Encore Wire reported higher copper and aluminum volumes in the first half of 2022. Volumes shipped improved further in the second quarter of 2022 from the first-quarter level. This marks the third consecutive quarter of volume growth, driven by continued increased demand for data center, healthcare and renewable product solutions.
With new capacity coming online this year, WIRE remains well-positioned to capture incremental market share and volume growth in the current economic environment. Its superior order fill rates, vertically integrated business model, cost-reduction actions and effective pricing efforts are expected to contribute to its margin performance.
Earnings estimates for Encore Wire have been northbound over the past 60 days. The Zacks Consensus Estimate for 2022 has increased around 40%, while the same for 2023 has gone up 6%. The favorable estimate revisions instill investor confidence in the stock.
Other Stocks to Consider
Some other top-ranked stocks in the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Greif, Inc. (GEF - Free Report) and Valmont Industries, Inc. (VMI - Free Report) .
Applied Industrial presently sports a Zacks Rank of 1. AIT delivered a trailing four-quarter earnings surprise of 22.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
AIT’s earnings estimates have increased 5.8% for fiscal 2023 (ending June 2023) in the past 60 days. Its shares have gained 24% in a year’s time.
Greif presently has a Zacks Rank #2 (Buy). GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average.
GEF’s earnings estimates have increased 0.4% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 13% over the past year.
Valmont Industries presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 13.7%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has appreciated 18% in a year.