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Colfax (CFX) Hits 52-Week High on Solid Performance & View

AIT IR KAI CFX

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Shares of Colfax Corporation (CFX - Free Report) reached a new 52-week high of $34.22 during its trading session on Nov 8. This apex improved upon the last 52-week high of $33.63 on Apr 27.

Colfax Corporation closed its trading session at $33.99, yielding year-to-date return of roughly 45.6%. The trading volume for the session was 0.87 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 9.1% for the next five years indicate the stock’s potential for further price appreciation.

Growth Drivers

Colfax Corporation’s performance has been impressive in the last four quarters, with a positive average earnings surprise of 11.57%. In third-quarter 2016, the company’s earnings of 39 cents per share exceeded the Zacks Consensus Estimate of 35 cents by 11.4%. The company’s share price has grown roughly 6.2% since the third-quarter results release on Oct 27.  

For 2016, Colfax Corporation raised the bottom end of its previous earnings guidance by 5 cents resulting in revised projection of $1.50−$1.55 per share for the year. The move was triggered by the benefits expected from costs-reduction efforts (roughly $50 million savings anticipated in 2016), favorable operating conditions and the company’s performance so far in the year.

In the quarters ahead, Colfax Corporation anticipates benefiting from its diversified product portfolio and exposure to emerging markets. Also, the company remains committed toward rewarding its shareholders handsomely, reflecting the company’s solid cash position.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Colfax Corporation grew 1.3% to $1.54 for 2016 and 0.6% to $1.64 for 2017.

COLFAX CORP Price and Consensus

 

COLFAX CORP Price and Consensus | COLFAX CORP Quote

With a market capitalization of $4.2 billion, Colfax Corporation currently carries a Zacks Rank #3 (Hold). Better-ranked machinery stocks include Applied Industrial Technologies, Inc. (AIT - Free Report) , Ingersoll-Rand Plc (IR - Free Report) and Kadant Inc. (KAI - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial Technologies’ earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward in the last 30 days. Average earnings surprise for the last four quarters was a positive 4.93%.
 
Ingersoll-Rand Plc reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 12.92%. Also, bottom-line expectations for 2016 and 2017 have improved over the past 30 days.

Kadant Inc.’s financial performance has been impressive, with an average positive earnings surprise of 27.67% for the last four quarters. Also, earnings estimates for 2016 have been revised upward over the last 30 days.

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