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Here's Why It is Worth Retaining Barnes (B) Stock Now
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Barnes Group Inc. (B - Free Report) is benefiting from its focus on innovation, strategic marketing and commercial excellence, and solid operational execution despite challenges related to supply chain and inflationary pressures.
Healthy aftermarket business, including maintenance, repair, and overhaul (MRO) and spare parts (RSP programs) sales growth is benefiting the Aerospace segment. Also, robust Original Equipment Manufacturing (OEM) order bodes well for the segment. The company anticipates adjusted earnings of $2.10-$2.30 per share for 2023, reflecting an increase of 6-16% from the year-ago reported figure.
Barnes’ efforts to reward its shareholders through dividend payments and share buybacks are encouraging. It paid out dividends worth $32.4 million to its shareholders in 2022. Also, while exiting the fourth quarter of 2022, the company was left to repurchase 3.4 million shares under its previously approved share buyback program. In 2021, Barnes paid out dividends worth $32.4 million to its shareholders and repurchased shares worth $5.2 million. The buybacks were made to neutralize the impact of equity compensation dilution.
The company’s efforts to reduce debt levels bode well. Its cash and cash equivalents at the end of the fourth quarter were $76.9 million, higher than the current portion of long-term debt of $1.4 million. This implies that the company has sufficient cash to meet its short-term debt obligations.
In light of the above-mentioned positives, we believe, investors should retain B stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 20.6% compared to the industry’s 9% increase.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Image: Bigstock
Here's Why It is Worth Retaining Barnes (B) Stock Now
Barnes Group Inc. (B - Free Report) is benefiting from its focus on innovation, strategic marketing and commercial excellence, and solid operational execution despite challenges related to supply chain and inflationary pressures.
Healthy aftermarket business, including maintenance, repair, and overhaul (MRO) and spare parts (RSP programs) sales growth is benefiting the Aerospace segment. Also, robust Original Equipment Manufacturing (OEM) order bodes well for the segment. The company anticipates adjusted earnings of $2.10-$2.30 per share for 2023, reflecting an increase of 6-16% from the year-ago reported figure.
Barnes’ efforts to reward its shareholders through dividend payments and share buybacks are encouraging. It paid out dividends worth $32.4 million to its shareholders in 2022. Also, while exiting the fourth quarter of 2022, the company was left to repurchase 3.4 million shares under its previously approved share buyback program. In 2021, Barnes paid out dividends worth $32.4 million to its shareholders and repurchased shares worth $5.2 million. The buybacks were made to neutralize the impact of equity compensation dilution.
The company’s efforts to reduce debt levels bode well. Its cash and cash equivalents at the end of the fourth quarter were $76.9 million, higher than the current portion of long-term debt of $1.4 million. This implies that the company has sufficient cash to meet its short-term debt obligations.
In light of the above-mentioned positives, we believe, investors should retain B stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 20.6% compared to the industry’s 9% increase.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, earnings estimates for Deere & Company have increased 8% for fiscal 2023. The stock has rallied 12.6% in the past six months.
Ingersoll Rand Inc. (IR - Free Report) presently carries a Zacks Rank #2 (Buy). IR’s earnings surprise in the last four quarters was 8.5%, on average.
In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 3%. The stock has gained 12.8% in the past six months.
AGCO Corporation (AGCO - Free Report) presently has a Zacks Rank of 2. AGCO’s earnings surprise in the last four quarters was 13.4%, on average.
In the past 60 days, earnings estimates for AGCO have increased 2.2% for 2023. The stock has rallied 19.8% in the past six months.