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Energy Recovery (ERII) Now a Strong Buy: Should You Add?
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Zacks Investment Research upgraded Energy Recovery, Inc. (ERII - Free Report) to a Zacks Rank #1 (Strong Buy) on Sep 14, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.
Why the Upgrade?
Market sentiments have been favoring Energy Recovery since the beginning of 2016, as evident from the 92.9% surge in the company’s share price to date. Also, the company’s financial performance in three of four preceding quarters was impressive, with an average positive earnings surprise of 36.20%. Last quarter, the company’s earnings of 1 cent per share came in above the Zacks Consensus Estimate of loss of 1 cent.
Energy Recovery’s top line in the quarter increased 26% year over year. The rise was driven by healthy business with original equipment manufacturers and aftermarket shipments as well as revenue associated with the Schlumberger exclusivity fee amortization.
For the quarters ahead, Energy Recovery intends to leverage benefits from the rising demand in the desalination markets worldwide. Also, a favorable shift in product mix and penetration in the emerging markets will prove beneficial for the company.
Impressive results and outlook have made investors optimistic about Energy Recovery’s prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased 4% to 52 cents per share for 2016 and by 23.7% to 47 cents per share for 2017. Also, the company has an Earnings ESP of +17.02% for 2017.
Energy Recovery, Inc. currently has a market capitalization of $710 million. Other stocks worth mentioning in the same industry include Tennant Company (TNC - Free Report) , Heritage-Crystal Clean, Inc. and Landauer Inc. . While Tennant Company sports the same Zacks Rank as Energy Recovery, both Heritage-Crystal Clean and Landauer carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Energy Recovery (ERII) Now a Strong Buy: Should You Add?
Zacks Investment Research upgraded Energy Recovery, Inc. (ERII - Free Report) to a Zacks Rank #1 (Strong Buy) on Sep 14, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.
Why the Upgrade?
Market sentiments have been favoring Energy Recovery since the beginning of 2016, as evident from the 92.9% surge in the company’s share price to date. Also, the company’s financial performance in three of four preceding quarters was impressive, with an average positive earnings surprise of 36.20%. Last quarter, the company’s earnings of 1 cent per share came in above the Zacks Consensus Estimate of loss of 1 cent.
Energy Recovery’s top line in the quarter increased 26% year over year. The rise was driven by healthy business with original equipment manufacturers and aftermarket shipments as well as revenue associated with the Schlumberger exclusivity fee amortization.
For the quarters ahead, Energy Recovery intends to leverage benefits from the rising demand in the desalination markets worldwide. Also, a favorable shift in product mix and penetration in the emerging markets will prove beneficial for the company.
Impressive results and outlook have made investors optimistic about Energy Recovery’s prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased 4% to 52 cents per share for 2016 and by 23.7% to 47 cents per share for 2017. Also, the company has an Earnings ESP of +17.02% for 2017.
ENERGY RECOVERY Price and Consensus
ENERGY RECOVERY Price and Consensus | ENERGY RECOVERY Quote
Other Stocks to Consider
Energy Recovery, Inc. currently has a market capitalization of $710 million. Other stocks worth mentioning in the same industry include Tennant Company (TNC - Free Report) , Heritage-Crystal Clean, Inc. and Landauer Inc. . While Tennant Company sports the same Zacks Rank as Energy Recovery, both Heritage-Crystal Clean and Landauer carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>