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Analyzing ITT's 10% YTD Surge: Will the Upward Trend Persist?
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Shares of ITT Inc. (ITT - Free Report) have rallied 10% in the year-to-date period against the industry’s 2.7% decrease. The upside can be linked to strength in end markets like aerospace and defense, and the company’s shareholder-friendly policies.
What’s Aiding ITT?
Higher sales volume, pricing actions and the acquisition of Habonim are benefiting ITT’s Industrial Process (IP) segment. Demand in connectors and components and favorable pricing policies are aiding the company’s Connect & Control Technologies (CCT) segment. Strong demand in IP’s short-cycle business and CCT’s aerospace market and robust pump project activity are supporting ITT’s top line.
ITT’s measures to expand operations through asset additions support its top-line growth. The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, specifically for long-term defense programs. The addition of Micro-Mode expanded the company's existing North American connectors platform, which is part of its CCT segment.
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The company’s commitment to rewarding shareholders through dividends holds promise. In the first three months of 2023, ITT’s dividend payment totaled $24.2 million and share repurchases were $30 million. The quarterly dividend rate was also hiked by 10% in February 2023.
Will the Uptrend in Shares Last?
In the quarters ahead, ITT is likely to benefit from its focus on fulfilling customers’ needs, operational execution, and innovation and growth investments. Also, the company has been investing in product innovation across its friction technologies, connectors and pump businesses for a while, which is likely to drive its performance in the near term.
Zacks Rank & Stocks to Consider
ITT currently carries Zacks Rank #3 (Hold). Some better-ranked stocks are discussed below:
GFF delivered a trailing four-quarter earnings surprise of 7.7%, on average. In the past 60 days, Griffon’s earnings estimates have increased 12.5% for fiscal 2023. The stock has surged 4.5% in the year-to-date period.
Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank of 1. IR delivered a trailing four-quarter earnings surprise of 12.6%, on average.
In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.1%. The stock has improved 23.5% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) currently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has increased 30.3% in the year-to-date period.
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Analyzing ITT's 10% YTD Surge: Will the Upward Trend Persist?
Shares of ITT Inc. (ITT - Free Report) have rallied 10% in the year-to-date period against the industry’s 2.7% decrease. The upside can be linked to strength in end markets like aerospace and defense, and the company’s shareholder-friendly policies.
What’s Aiding ITT?
Higher sales volume, pricing actions and the acquisition of Habonim are benefiting ITT’s Industrial Process (IP) segment. Demand in connectors and components and favorable pricing policies are aiding the company’s Connect & Control Technologies (CCT) segment. Strong demand in IP’s short-cycle business and CCT’s aerospace market and robust pump project activity are supporting ITT’s top line.
ITT’s measures to expand operations through asset additions support its top-line growth. The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, specifically for long-term defense programs. The addition of Micro-Mode expanded the company's existing North American connectors platform, which is part of its CCT segment.
Image Source: Zacks Investment Research
The company’s commitment to rewarding shareholders through dividends holds promise. In the first three months of 2023, ITT’s dividend payment totaled $24.2 million and share repurchases were $30 million. The quarterly dividend rate was also hiked by 10% in February 2023.
Will the Uptrend in Shares Last?
In the quarters ahead, ITT is likely to benefit from its focus on fulfilling customers’ needs, operational execution, and innovation and growth investments. Also, the company has been investing in product innovation across its friction technologies, connectors and pump businesses for a while, which is likely to drive its performance in the near term.
Zacks Rank & Stocks to Consider
ITT currently carries Zacks Rank #3 (Hold). Some better-ranked stocks are discussed below:
Griffon Corporation (GFF - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks.
GFF delivered a trailing four-quarter earnings surprise of 7.7%, on average. In the past 60 days, Griffon’s earnings estimates have increased 12.5% for fiscal 2023. The stock has surged 4.5% in the year-to-date period.
Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank of 1. IR delivered a trailing four-quarter earnings surprise of 12.6%, on average.
In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 7.1%. The stock has improved 23.5% in the year-to-date period.
Alamo Group Inc. (ALG - Free Report) currently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has increased 30.3% in the year-to-date period.