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Manitex Hits 52-Week High: What's Driving the Stock?

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Manitex International, Inc. (MNTX - Free Report) hit a new 52-week high of $8.35 during intraday trading before closing lower at $8.12 on Jan 17. Average volume of shares traded in the last three months is approximately 116.5K.

The Bridgeview, IL.-based leading provider of engineered lifting solutions has a market cap of $131.4 million. The stock has delivered an impressive one-year return of about 67.1%, outperforming the Zacks categorized  Machinery General Industrial sub industry’ gain of 40.3%. 

What's Driving Manitex Upward?

Manitex shares have risen 26.4% since the company reported third-quarter results on Nov 9, 2016. The company reported adjusted earnings per share of 5 cents per share, reversing prior-year quarter’s loss per share of 4 cents.

Despite facing extremely challenging conditions in most of its markets, the company is taking initiatives to positon itself for future growth, implementing cost reductions, reducing debt levels along with rationalizing its production schedules to match order rate. Further, it is divesting non-core, product lines. Manitex recently announced the sale of its subsidiary, CVS Ferrari, S.r.l.  This divestment was in sync with the company’s strategy to focus on its higher margin core lifting businesses as well as cutting down debt. Moreover, the company is improving its competitive position in the market and is witnessing market share gains in its core businesses.

Manitex recently provided an update regarding trends in business activity that indicates an improved outlook for 2017. Quote volume had improved during third-quarter 2016 and the 8-week rolling quote activity was approximately 70% ahead from the same period in 2015. The company stated that backlog for straight mast cranes in the fourth quarter was almost twice the third quarter’s. Further, it expects the fourth quarter book to bill ratio for straight mast cranes to exceed 1.0. Improvements in few markets have resulted in higher quoting activity and increased bookings for boom trucks. Additionally, the company witnessed growth in orders from dealers who are replenishing decreased inventory levels in response to improving market activity.

Manitex International, Inc. Price and Consensus
 

The company also recently announced that assembly and shipment of two new Manitex crane products have begun at its Georgetown, TX facility, for the TM200 and PL74 cranes, in support of the strengthening construction markets. These products both lift and haul cargo and can cater to both commercial and residential construction market end-users.

Manitex currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Some other favorably ranked stocks in the same sector include Altra Industrial Motion Corp. , Apogee Enterprises, Inc. (APOG - Free Report) and Actuant Corporation .

Altra Industrial Motion sports a Zacks Rank #1 and has an impressive earnings track record. It has an average positive earnings surprise of 8.06% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apogee Enterprises also boasts a Zacks Rank #1 and has an average earnings surprise of 13.24% in the trailing four quarters.

Actuant Corporation, another Zacks Rank #1 stock, has an average positive earnings surprise of 11.47% for the past four quarters.

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