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Lincoln Electric (LECO) Buys RedViking to Boost Portfolio

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Lincoln Electric Holdings, Inc. (LECO - Free Report) announced that it acquired a privately held automation system integrator, RedViking. This move will expand Lincoln Electric’s portfolio of automation solutions.

RedViking, based in Plymouth, MI, provides services to customers in the aerospace and defense, transportation, and general industries. The company specializes in the development and integration of cutting-edge autonomous guided vehicles and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system software. RedViking's annual revenues are above $70 million.

Lincoln Electric has been benefiting from several acquisitions completed over the past few years. Adding RedViking to its portfolio will help Lincoln Electric extend its ability to serve customers in the growing aerospace and defense industries. RedViking’s results will be reported under the Americas Welding Segment of Lincoln Electric.

In the fourth quarter of 2023, Americas Welding’s total sales increased 14.4% to $690 million from $603 million in the year-earlier quarter. Adjusted operating income totaled $129.5 million compared with $114 million in the year-ago quarter.

Price Performance

LECO shares have gained 49.3% in the past year compared with the industry’s 31.4% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

Lincoln Electric currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Proto Labs, Inc. (PRLB - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Cadre Holdings, Inc. (CDRE - Free Report) . PRLB currently sports a Zacks Rank #1 (Strong Buy), and AIT and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.

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