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RBC Bearings (RBC) Gains 17.2% in a Year: Will the Trend Last?
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RBC Bearings Incorporated (RBC - Free Report) appears in good shape, with its shares having gained 17.2% in the past year compared with the industry’s 12.1% growth.
What’s Aiding RBC?
The company benefits from the strong performance of the Aerospace/Defense and Industrial segments. Its strength in commercial aerospace, driven by the recovery in build rates from large original equipment manufacturers and stability in the aftermarket, is driving the Aerospace/Defense segment. Solid momentum in the food and beverage, mining, energy and general industrial end markets support the Industrial segment.
The company’s expansion initiative is expected to drive growth. It acquired Carson City, NV-based precision bearings manufacturer Specline, Inc. in August 2023. The transaction was valued at $18.7 million. Specline’s unique bearing and manufacturing processes expanded RBC Bearings’ aerospace product offerings and boosted the company’s production capacity.
RBC continues to increase shareholders’ value through dividend payments and share repurchases. In the first six months of fiscal 2024 (ended September 2023), the company paid dividends of $11.5 million, almost flat year over year and repurchased shares for $7 million, increasing 17.3% year over year.
Image Source: Zacks Investment Research
Will the Uptrend in Shares Last?
RBC is likely to benefit from its product development initiatives and robust demand for large planes like the Airbus 737, 787, A320 and A330 in the quarters ahead. Additional volume increases, driven by RBC Bearings’ space initiatives, may also bode well. For the third quarter of fiscal 2024 (ended December 2023), the company anticipates net sales of $370-$380 million, suggesting a year-over-year increase of 5.2-8.1%.
Zacks Rank & Stocks to Consider
RBC Bearings currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the same space are discussed below:
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings remained steady. The stock has risen 21.8% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter average earnings surprise of 13.9%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings remained steady in the past 60 days. Shares of Applied Industrial have rallied 34.9% in the past year.
Crane Company (CR - Free Report) currently carries a Zacks Rank #2. The company delivered a trailing four-quarter average earnings surprise of 29.8%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2023 earnings remained steady. The stock has risen 43.6% in the past year.
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RBC Bearings (RBC) Gains 17.2% in a Year: Will the Trend Last?
RBC Bearings Incorporated (RBC - Free Report) appears in good shape, with its shares having gained 17.2% in the past year compared with the industry’s 12.1% growth.
What’s Aiding RBC?
The company benefits from the strong performance of the Aerospace/Defense and Industrial segments. Its strength in commercial aerospace, driven by the recovery in build rates from large original equipment manufacturers and stability in the aftermarket, is driving the Aerospace/Defense segment. Solid momentum in the food and beverage, mining, energy and general industrial end markets support the Industrial segment.
The company’s expansion initiative is expected to drive growth. It acquired Carson City, NV-based precision bearings manufacturer Specline, Inc. in August 2023. The transaction was valued at $18.7 million. Specline’s unique bearing and manufacturing processes expanded RBC Bearings’ aerospace product offerings and boosted the company’s production capacity.
RBC continues to increase shareholders’ value through dividend payments and share repurchases. In the first six months of fiscal 2024 (ended September 2023), the company paid dividends of $11.5 million, almost flat year over year and repurchased shares for $7 million, increasing 17.3% year over year.
Image Source: Zacks Investment Research
Will the Uptrend in Shares Last?
RBC is likely to benefit from its product development initiatives and robust demand for large planes like the Airbus 737, 787, A320 and A330 in the quarters ahead. Additional volume increases, driven by RBC Bearings’ space initiatives, may also bode well. For the third quarter of fiscal 2024 (ended December 2023), the company anticipates net sales of $370-$380 million, suggesting a year-over-year increase of 5.2-8.1%.
Zacks Rank & Stocks to Consider
RBC Bearings currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the same space are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings remained steady. The stock has risen 21.8% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter average earnings surprise of 13.9%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings remained steady in the past 60 days. Shares of Applied Industrial have rallied 34.9% in the past year.
Crane Company (CR - Free Report) currently carries a Zacks Rank #2. The company delivered a trailing four-quarter average earnings surprise of 29.8%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2023 earnings remained steady. The stock has risen 43.6% in the past year.