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Here's Why Hold Strategy is Apt for Middleby (MIDD) Stock Now
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The Middleby Corporation (MIDD - Free Report) has been benefiting from strength in the Food Processing segment despite weakness in the Residential Kitchen Equipment Group segment and rising costs and expenses.
What’s Aiding MIDD?
Business Strength: Middleby is poised to benefit from a robust backlog level and strong incoming order growth. Also, the company’s initiative to introduce new products, robust product portfolio and investments in the innovation centers are driving growth. Improvements in end-market conditions and solid consumer demand in the Food Processing segment are driving the company’s organic sales.
Increased demand, driven by full-line automated solutions for protein and bakery products, is supporting the growth of the Food Processing Equipment Group. The segment’s revenues increased 2.7% year over year in the fourth quarter of 2023. Improvement in market conditions, primarily in the Asia and Latin American markets, is aiding the Commercial Foodservice Equipment Group segment.
Expansion Efforts: Middleby believes in expanding its market presence, solidifying its customer base and enhancing product offerings through acquisitions. In February 2024, the company acquired Germany-based GBT GmbH Bakery Technology. The buyout complements Middleby’s existing bakery brands and strengthens its European presence in large-scale baking.
The company acquired Trade-Wind Manufacturing LLC in August 2023. The buyout complements Middleby’s indoor and outdoor residential cooking brands, allowing it to offer its customers a broader portfolio of exciting designs and solutions. The acquisition of TERRY Water Treatment Solutions (July 2023) bolsters the company’s commercial food service operations. In June 2023, MIDD acquired Filtration Automation Inc., which boosted its food processing portfolio and expanded its frying system offerings.
Middleby’s acquisition of Flavor Burst (January 2023) complements its existing product offerings in the beverage group. The acquisition of Marco Beverage Systems in December 2022 complements the company's existing beverage portfolio, expanding its cold brew dispense, coffee brewers, and a variety of hot, cold and sparkling water dispenser offerings. Acquired assets boosted sales 1.3% year over year in the fourth quarter of 2023.
Rewards to Shareholders: MIDD is committed to rewarding its shareholders handsomely. In 2022 and 2023, it repurchased common shares worth $264.8 million and $74.6 million, respectively.
In light of the above-mentioned positives, we believe investors should retain MIDD stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past year, shares of the company have gained 2.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Earnings estimates for BDC have remained steady for 2024 in the past 60 days. Shares of Belden have gained 4.7% in the past year.
Tetra Tech, Inc. (TTEK - Free Report) currently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 14.4%.
In the past 60 days, the Zacks Consensus Estimate for TTEK’s fiscal 2024 earnings has increased 2.9%. The stock has soared 25.6% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.4%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 1.7% in the past 60 days. The stock has gained 43.9% in the past year.
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Here's Why Hold Strategy is Apt for Middleby (MIDD) Stock Now
The Middleby Corporation (MIDD - Free Report) has been benefiting from strength in the Food Processing segment despite weakness in the Residential Kitchen Equipment Group segment and rising costs and expenses.
What’s Aiding MIDD?
Business Strength: Middleby is poised to benefit from a robust backlog level and strong incoming order growth. Also, the company’s initiative to introduce new products, robust product portfolio and investments in the innovation centers are driving growth. Improvements in end-market conditions and solid consumer demand in the Food Processing segment are driving the company’s organic sales.
Increased demand, driven by full-line automated solutions for protein and bakery products, is supporting the growth of the Food Processing Equipment Group. The segment’s revenues increased 2.7% year over year in the fourth quarter of 2023. Improvement in market conditions, primarily in the Asia and Latin American markets, is aiding the Commercial Foodservice Equipment Group segment.
Expansion Efforts: Middleby believes in expanding its market presence, solidifying its customer base and enhancing product offerings through acquisitions. In February 2024, the company acquired Germany-based GBT GmbH Bakery Technology. The buyout complements Middleby’s existing bakery brands and strengthens its European presence in large-scale baking.
The company acquired Trade-Wind Manufacturing LLC in August 2023. The buyout complements Middleby’s indoor and outdoor residential cooking brands, allowing it to offer its customers a broader portfolio of exciting designs and solutions. The acquisition of TERRY Water Treatment Solutions (July 2023) bolsters the company’s commercial food service operations. In June 2023, MIDD acquired Filtration Automation Inc., which boosted its food processing portfolio and expanded its frying system offerings.
Middleby’s acquisition of Flavor Burst (January 2023) complements its existing product offerings in the beverage group. The acquisition of Marco Beverage Systems in December 2022 complements the company's existing beverage portfolio, expanding its cold brew dispense, coffee brewers, and a variety of hot, cold and sparkling water dispenser offerings. Acquired assets boosted sales 1.3% year over year in the fourth quarter of 2023.
Rewards to Shareholders: MIDD is committed to rewarding its shareholders handsomely. In 2022 and 2023, it repurchased common shares worth $264.8 million and $74.6 million, respectively.
In light of the above-mentioned positives, we believe investors should retain MIDD stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past year, shares of the company have gained 2.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Belden Inc. (BDC - Free Report) presently carries a Zacks Rank #2 (Buy) and has a trailing four-quarter earnings surprise of 12.3%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings estimates for BDC have remained steady for 2024 in the past 60 days. Shares of Belden have gained 4.7% in the past year.
Tetra Tech, Inc. (TTEK - Free Report) currently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 14.4%.
In the past 60 days, the Zacks Consensus Estimate for TTEK’s fiscal 2024 earnings has increased 2.9%. The stock has soared 25.6% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.4%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 1.7% in the past 60 days. The stock has gained 43.9% in the past year.