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Fortive (FTV) Gains 11.7% YTD: Will the Trend Continue?
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Fortive (FTV - Free Report) witnessed strong momentum this year, with shares gaining 11.7% year to date compared with the sub-industry’s rise of 6.6%.
Fortive is a diversified industrial growth company that provides industrial technology and professional instrumentation solutions on a global basis. Going ahead, the company aims to tackle the overall cyclicality of its businesses by investing in multiyear megatrends, like automation, digitization and electrification.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company plans to further grow its business using a five-way strategy. FTV has transitioned its software offering in line with the secular growth trends in artificial intelligence and machine learning.
The company plans to utilize its innovation capabilities to improve core growth. It expects software and recurring revenues to grow in the range of 45-50% and 20%, respectively, in 2023 and 2028. The company also concentrates on enhancing the Fortive Business System to promote innovation and long-lasting outcomes.
The company continues to engage in mergers and acquisitions to expand its market share. The acquisition of eMaint Enterprises by Fortive’s subsidiary, Fluke, and the buyout of Global Traffic Technologies, has allowed FTV to enter the rapidly-growing cloud computing market.
Owing to the above-mentioned factors, Fortive expects adjusted net earnings per share to grow to $4.50 by 2025 and to $6.75 by 2028 from $3.15 in 2022. Similarly, the company expects revenues to grow to $6.7 billion by 2025 and to $8 billion by 2028 from $5.8 billion in 2022.
The company came up with an impressive performance in the first quarter of 2023. Fortive reported first-quarter 2023 adjusted earnings of 75 cents per share, outpacing the Zacks Consensus Estimate by 2.7% and increasing 7% year over year. Revenues increased 6% year over year to $1.461 billion and beat the Zacks Consensus Estimate by 3.1%. Core revenues also moved up 8.8% from the year-ago quarter’s levels.
Despite strong demand, the company's near-term prospects might be affected by global macroeconomic weakness and inflation. The company’s healthcare business segment is affected due to unfavorable forex changes and product mix coupled with lower volume.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 16% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 102.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of the company have jumped 31.1% in the past year.
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Fortive (FTV) Gains 11.7% YTD: Will the Trend Continue?
Fortive (FTV - Free Report) witnessed strong momentum this year, with shares gaining 11.7% year to date compared with the sub-industry’s rise of 6.6%.
Fortive is a diversified industrial growth company that provides industrial technology and professional instrumentation solutions on a global basis. Going ahead, the company aims to tackle the overall cyclicality of its businesses by investing in multiyear megatrends, like automation, digitization and electrification.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company plans to further grow its business using a five-way strategy. FTV has transitioned its software offering in line with the secular growth trends in artificial intelligence and machine learning.
The company plans to utilize its innovation capabilities to improve core growth. It expects software and recurring revenues to grow in the range of 45-50% and 20%, respectively, in 2023 and 2028. The company also concentrates on enhancing the Fortive Business System to promote innovation and long-lasting outcomes.
The company continues to engage in mergers and acquisitions to expand its market share. The acquisition of eMaint Enterprises by Fortive’s subsidiary, Fluke, and the buyout of Global Traffic Technologies, has allowed FTV to enter the rapidly-growing cloud computing market.
Owing to the above-mentioned factors, Fortive expects adjusted net earnings per share to grow to $4.50 by 2025 and to $6.75 by 2028 from $3.15 in 2022. Similarly, the company expects revenues to grow to $6.7 billion by 2025 and to $8 billion by 2028 from $5.8 billion in 2022.
The company came up with an impressive performance in the first quarter of 2023. Fortive reported first-quarter 2023 adjusted earnings of 75 cents per share, outpacing the Zacks Consensus Estimate by 2.7% and increasing 7% year over year. Revenues increased 6% year over year to $1.461 billion and beat the Zacks Consensus Estimate by 3.1%. Core revenues also moved up 8.8% from the year-ago quarter’s levels.
Despite strong demand, the company's near-term prospects might be affected by global macroeconomic weakness and inflation. The company’s healthcare business segment is affected due to unfavorable forex changes and product mix coupled with lower volume.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Dropbox (DBX - Free Report) , Badger Meter (BMI - Free Report) and Blackbaud (BLKB - Free Report) . Each of the companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 16% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 102.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of the company have jumped 31.1% in the past year.