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Raven Poised for Organic Growth Despite Macro Headwinds
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On Jan 20, Zacks Investment Research updated the research report on diversified operations manufacturer Raven Industries, Inc. .
Headquartered in Sioux Falls, SD, Raven manufactures a variety of products for customers in the industrial, construction and military/aerospace markets.
Raven outperformed the Zacks categorized Diversified Operations industry with an average return of 10.9% in the last three months compared with 8.4% for the latter. The company anticipates exceeding prior-year sales and adjusted operating income in fiscal 2017. In applied technology, it is increasing market share through technological advancements. Through sustained funding of key R&D projects over the last few years, it introduced two significant new products, Hawkeye nozzle control system and next-generation rate control system. These products are getting favorable customer feedback and are generating strong demand. This is expected to continue in the second half of the fiscal 2017and into fiscal 2018.
New product introductions by the company continue to gain traction, particularly through original equipment manufacturer (OEM) channel. During the second quarter of fiscal 2017, the company added a new international OEM relationship in Latin America and also expanded its relationships with two key strategic OEM partners in the U.S. Over the last several years, the company has developed its next-generation rate control technology, which Deere is adopting into their product offering for the aftermarket. Thus, Raven remains optimistic about the market opportunity for its core technology.
However, the energy and geomarkets plummeted over 40% year over year in the first quarter of fiscal 2017. Even though these markets partially recovered to post a 6% decline in the second quarter, the company does not expect them to rebound for some time now. Further, in engineered films, Raven anticipates that the energy and geomembrane markets will stabilize, albeit at a much lower level than the prior year.
The company’s financial results could be hurt by changes in trade, monetary and fiscal policies, and laws and regulations. Moreover, foreign exchange volatility and increased competition will hurt growth.
Barloworld has a long-term earnings growth expectation of 12.82% and is currently trading at a forward P/E of 11.48x.
Hitachi has long-term earnings growth expectation of 13.0%. It has beaten estimates in two of the trailing four quarters with an average positive earnings surprise of 145.61%.
Swire Pacific is currently trading at a forward P/E of 16.21x. The company currently has long-term earnings growth expectation of 3%. The company's operations are predominantly based in the Greater China region, where the Swire group has been established for over 130 years.
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Raven Poised for Organic Growth Despite Macro Headwinds
On Jan 20, Zacks Investment Research updated the research report on diversified operations manufacturer Raven Industries, Inc. .
Headquartered in Sioux Falls, SD, Raven manufactures a variety of products for customers in the industrial, construction and military/aerospace markets.
Raven outperformed the Zacks categorized Diversified Operations industry with an average return of 10.9% in the last three months compared with 8.4% for the latter. The company anticipates exceeding prior-year sales and adjusted operating income in fiscal 2017. In applied technology, it is increasing market share through technological advancements. Through sustained funding of key R&D projects over the last few years, it introduced two significant new products, Hawkeye nozzle control system and next-generation rate control system. These products are getting favorable customer feedback and are generating strong demand. This is expected to continue in the second half of the fiscal 2017and into fiscal 2018.
New product introductions by the company continue to gain traction, particularly through original equipment manufacturer (OEM) channel. During the second quarter of fiscal 2017, the company added a new international OEM relationship in Latin America and also expanded its relationships with two key strategic OEM partners in the U.S. Over the last several years, the company has developed its next-generation rate control technology, which Deere is adopting into their product offering for the aftermarket. Thus, Raven remains optimistic about the market opportunity for its core technology.
However, the energy and geomarkets plummeted over 40% year over year in the first quarter of fiscal 2017. Even though these markets partially recovered to post a 6% decline in the second quarter, the company does not expect them to rebound for some time now. Further, in engineered films, Raven anticipates that the energy and geomembrane markets will stabilize, albeit at a much lower level than the prior year.
The company’s financial results could be hurt by changes in trade, monetary and fiscal policies, and laws and regulations. Moreover, foreign exchange volatility and increased competition will hurt growth.
Raven currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Barloworld Limited (BRRAY - Free Report) , Hitachi, Ltd. (HTHIY - Free Report) and Swire Pacific Limited (SWRAY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Barloworld has a long-term earnings growth expectation of 12.82% and is currently trading at a forward P/E of 11.48x.
Hitachi has long-term earnings growth expectation of 13.0%. It has beaten estimates in two of the trailing four quarters with an average positive earnings surprise of 145.61%.
Swire Pacific is currently trading at a forward P/E of 16.21x. The company currently has long-term earnings growth expectation of 3%. The company's operations are predominantly based in the Greater China region, where the Swire group has been established for over 130 years.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>