Back to top

Analyst Blog

Zacks Equity Research

Barnes Group Hits 52-Week High on Solid Q3 Results & View

AIT MIDD B BWEN

Trades from $3

Shares of Barnes Group (B - Free Report) reached a new 52-week high of $46.93 during its trading session on Nov 23. This apex improved upon the last 52-week high of $46.27 on Nov 22.

The industrial company closed its trading session a tad lower at $46.82, yielding year-to-date return of roughly 34.1%. The trading volume for the session was 0.16 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 9% for the next five years indicate the stock’s potential for further price appreciation.

Growth Drivers

Barnes Group reported better-than-expected results in two of last four quarters, met expectations in one, while lagged estimates in one. Average earnings surprise was a positive 0.92%. In third-quarter 2016, Barnes Group’s earnings of 71 cents per share exceeded the Zacks Consensus Estimate of 67 cents by 5.97%. The company’s share price has gained roughly 16.3% since the third-quarter results release on Oct 28.  

For 2016, Barnes Group anticipates that strengthening its molding solutions business will primarily drive mid- to high-single digit growth in the Industrial segment. Also, the company predicts mid-to high-single growth in its Maintenance Repair and Overhaul business, while also predicts a 5% benefit from its acquisition activities.

In the year, Barnes Group anticipates sales to grow within 3.5−4.5% versus 3−4% expected earlier. Organic sales will likely be flat. Adjusted earnings will come in within $2.48−$2.53 per share range, increasing 4% to 6% year over year.

Currently, Barnes Group has an Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) of +1.56% for fourth-quarter 2016. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Barnes Group grew 0.4% to $2.52 per share for 2016 and 0.4% to $2.68 per share for 2017. These estimates represent year-over-year growth of 5.8% for 2016 and 6.3% for 2017.

BARNES GRP Price and Consensus

 

BARNES GRP Price and Consensus | BARNES GRP Quote

With a market capitalization of $2.5 billion, Barnes Group currently carries a Zacks Rank #3 (Hold). Some better-ranked machinery stocks include Applied Industrial Technologies, Inc. (AIT - Free Report) , Broadwind Energy, Inc. (BWEN - Free Report) and Middleby Corporation (MIDD - 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 posted an average positive earnings surprise of 4.93% in the last four quarters. Also, the earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward over the past 60 days.

Broadwind Energy, Inc’s bottom-line estimates for 2016 and 2017 have been revised upward in the last 60 days. Also, Middleby Corporation reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 15.93%. In addition, earnings estimates for 2016 and 2017 have improved over the past 60 days.

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>>