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Broadwind Energy Hits New 52-Week High on Solid Prospects

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Shares of Broadwind Energy, Inc. (BWEN - Free Report) reached a new 52-week high of $6.60 during its trading session on Mar 24. This apex improved upon the last 52-week high of $6.48 on Mar 13.

Post the release of fourth-quarter 2016 results on Feb 23, shares of the company yielded 26.80% return, outperforming the loss of 0.11% recorded by the Zacks categorized Machinery General Industrial industry.

On Mar 24, Broadwind Energy closed its trading session at $6.54, yielding year-to-date return of roughly 61.5%. The trading volume for the session was 0.16 million shares. Positive earnings estimate revisions for 2017 indicate the stock’s potential for further price appreciation.

Growth Drivers

Market sentiments for Broadwind Energy have been positive since the beginning of 2017, especially after it reported impressive fourth-quarter results. Earnings of 3 cents per share, though matched the Zacks Consensus Estimate, improved over the loss of 73 cents recorded a year ago. Also, net sales increased 28% year over year on the back of increased production at the company’s tower facility in Texas.     

For 2017, the company anticipates sales to be within $210−$220 million, above $180.8 million generated in the previous year. In first-quarter 2017, sales are predicted to be within $54-$56 million.

In 2016, Broadwind Energy announced its plans of doubling its sales in the next three years through bolt-on acquisitions, organic growth initiatives and expansion of tower production capacity. In line with this strategy, the company completed acquiring Red Wolf Company, LLC in February. The acquired assets are anticipated to be immediately accretive to earnings. Also, the company believes that the expansionary activities at the Abilene tower plant will be completed by mid-2017, resulting in a 30% increase in production capacity.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Broadwind Energy increased 73.3% to 26 cents for 2017. The consensus estimate represents year-over-year growth of 188.89%.

With a market capitalization of $98 million, Broadwind Energy currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the machinery industry include Parker-Hannifin Corporation (PH - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Altra Industrial Motion Corp. (AIMC - Free Report) . While Parker-Hannifin Corporation sports a Zacks Rank #1 (Strong Buy), both Applied Industrial Technologies and Altra Industrial Motion carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Parker-Hannifin Corporation’s earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward over the last 60 days. Also, the company has an average positive earnings surprise of 12.44% for the trailing four quarters.

Applied Industrial Technologies has an average positive earnings surprise of 6.18% for the last four quarters. Also, earnings estimates for fiscal 2018 have improved over the last 60 days.

Altra Industrial Motion reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 12.49%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.

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