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Here's Why You Should Hold on to RBC Bearings (RBC) Stock
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RBC Bearings Incorporated (RBC - Free Report) is benefiting from strength in the Industrial and Aerospace/Defense segments, and accretive acquisitions despite softness in the aftermarket business and the rising cost of sales.
What’s Aiding RBC?
Business Strength: Increasing demand in the commercial original equipment manufacturer, aftermarket, aerospace and marine end markets is driving RBC’s Aerospace/Defense segment. The Industrial segment is benefiting from strength in the aggregate and cement, food and beverage, mining and metals and general industrial end markets.
Expansion Efforts: RBC Bearings’ expansion initiative is expected to drive growth. RBC acquired Carson City, NV-based precision bearings manufacturer Specline, Inc. in August 2023. Specline’s unique bearing and manufacturing processes expand RBC Bearings’ aerospace product offerings and boost the company’s production capacity.
Product Development Initiatives: The company is well-poised to benefit from its product development initiatives and robust demand for large planes like the Airbus 737, 787, A320 and A330 principally, in the quarters ahead. Additional volume increases, driven by RBC Bearings’ space initiatives, are also likely to be beneficial.
Rewards to Shareholders: The company’s measures to reward its shareholders through dividend payments are noteworthy. In the first three months of fiscal 2024 (ended Jul 1, 2023), the company paid dividends of $6.8 million, up 13.3% year over year. RBC Bearings repurchased shares worth $7.7 million and distributed preferred dividends worth $22.9 million in fiscal 2023 (ended June 2022).
In light of the above-mentioned positives, we believe, investors should retain RBC stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past year, shares of the company have gained 13%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
The company delivered a trailing four-quarter earnings surprise of approximately 60.2%, on average. In the past 60 days, estimates for Axon’s earnings have increased 2.9% for 2023. The stock has soared 81.8% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank of 1 and a trailing four-quarter earnings surprise of 15%, on average.
AIT’s earnings estimates have increased 1.8% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 45.8% in the past year.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank #2 (Buy). CAT’s earnings surprise in the last four quarters was 18.5%, on average.
In the past 60 days, estimates for Caterpillar’s 2023 earnings have increased 1.3%. The stock has gained 48.9% in the past year.
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Here's Why You Should Hold on to RBC Bearings (RBC) Stock
RBC Bearings Incorporated (RBC - Free Report) is benefiting from strength in the Industrial and Aerospace/Defense segments, and accretive acquisitions despite softness in the aftermarket business and the rising cost of sales.
What’s Aiding RBC?
Business Strength: Increasing demand in the commercial original equipment manufacturer, aftermarket, aerospace and marine end markets is driving RBC’s Aerospace/Defense segment. The Industrial segment is benefiting from strength in the aggregate and cement, food and beverage, mining and metals and general industrial end markets.
Expansion Efforts: RBC Bearings’ expansion initiative is expected to drive growth. RBC acquired Carson City, NV-based precision bearings manufacturer Specline, Inc. in August 2023. Specline’s unique bearing and manufacturing processes expand RBC Bearings’ aerospace product offerings and boost the company’s production capacity.
Product Development Initiatives: The company is well-poised to benefit from its product development initiatives and robust demand for large planes like the Airbus 737, 787, A320 and A330 principally, in the quarters ahead. Additional volume increases, driven by RBC Bearings’ space initiatives, are also likely to be beneficial.
Rewards to Shareholders: The company’s measures to reward its shareholders through dividend payments are noteworthy. In the first three months of fiscal 2024 (ended Jul 1, 2023), the company paid dividends of $6.8 million, up 13.3% year over year. RBC Bearings repurchased shares worth $7.7 million and distributed preferred dividends worth $22.9 million in fiscal 2023 (ended June 2022).
In light of the above-mentioned positives, we believe, investors should retain RBC stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past year, shares of the company have gained 13%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Axon Enterprise, Inc. (AXON - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of approximately 60.2%, on average. In the past 60 days, estimates for Axon’s earnings have increased 2.9% for 2023. The stock has soared 81.8% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank of 1 and a trailing four-quarter earnings surprise of 15%, on average.
AIT’s earnings estimates have increased 1.8% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 45.8% in the past year.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank #2 (Buy). CAT’s earnings surprise in the last four quarters was 18.5%, on average.
In the past 60 days, estimates for Caterpillar’s 2023 earnings have increased 1.3%. The stock has gained 48.9% in the past year.