Zacks Investment Research upgraded EnPro Industries Inc. (NPO - Snapshot Report) to a Zacks Rank #1 (Strong Buy) on Oct 4, 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 EnPro Industries since the beginning of 2016, as evident from the 30.2% rise in the company’s share price to date. Also, the company’s financial performance in the last quarter has been impressive, with earnings of 60 cents per share surpassing the Zacks Consensus Estimate of 49 cents by 22.5%.
In the quarters ahead, EnPro Industries aims to strengthen its profitability by introducing new and improved products, penetrating deeper into unexplored and existing end-markets, enhancing production efficiency and cost-reduction initiatives, anticipating roughly $20 million in annualized savings. Also, EnPro Industries prefers to maintain a sound capital allocation policy and keep rewarding shareholders through dividend payments and share buybacks.
Impressive results and outlook have made investors optimistic about EnPro Industries’ prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased by 5.3% to $1.98 per share for 2016. Also, the estimate represents year-over-year growth of 40.1%.
Other Stocks to Consider
EnPro Industries currently has a market capitalization of $1.2 billion. Other stocks worth mentioning in the machinery industry include DXP Enterprises, Inc. (DXPE - Snapshot Report) , Nordson Corporation (NDSN - Snapshot Report) and Middleby Corporation (MIDD - Analyst Report) . While both DXP Enterprises and Nordson Corporation sport a Zacks Rank #1, Middleby Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises reported better-than-expected results in the last quarter, with a positive earnings surprise of 440%. Also, bottom-line expectations for 2016 and 2017 have improved over the past 60 days.
Nordson Corporation’s financial performance has been impressive, with an average positive earnings surprise of 9.13% for the last four quarters. Also, earnings estimate for fiscal 2016 and fiscal 2017 have been revised upward over the last 60 days.
Middleby Corporation has witnessed positive revisions in earnings estimates for 2016 and 2017 over the past 60 days. Also, the company posted a positive average earnings surprise of 9.22% for the trailing four quarters.
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