We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sun Hydraulics (SNHY) Now a Strong Buy: Should You Add?
Read MoreHide Full Article
On Jun 15, Zacks Investment Research upgraded Sun Hydraulics Corporation to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
In the last one month, the company’s shares have yielded a return of 17.80%, outperforming the gain of 6.56% recorded by the Zacks categorized Machinery General Industrial industry.
Why the Upgrade?
Market sentiments have been favoring Sun Hydraulics for quite some time now. Notably, the company’s shares have rallied 10.90% since the release of impressive first-quarter 2017 results on May 8. Earnings surprise was a positive 5.56% in the quarter. A sneak peek into the results reveals that profitability came on the back of solid sales growth, partially offset by amortization expenses related to acquisition and higher interest expenses.
We believe that Sun Hydraulics will gain from its efforts to improve its operational execution, product development and market penetration. Also, the company’s Enovation Controls assets (acquired in Dec 2016), once fully integrated, will yield synergistic benefits. For 2017, the company anticipates revenues to come in a $295−$310 million range (including $205−$215 million from Hydraulics and $90−$95 million from Electronics). The guidance reflects an increase from $196.9 million generated in 2016. In addition, the company is committed toward rewarding its shareholders with lucrative quarterly dividend payments.
Investors seem to be optimistic about Sun Hydraulics’ future prospects, as evident from positive revisions in earnings estimates for the stock. Over the last 60 days, the Zacks Consensus Estimate for the company increased 6.3% to $1.35 for 2017 and 5.4% to $1.55 for 2018. These estimates represent year-over-year growth of 55.17% for 2017 and 14.81% for 2018.
Sun Hydraulics Corporation has a market capitalization of $1.18 billion. Other stocks worth considering in the industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While Kennametal and Parker-Hannifin sport a Zacks Rank #1, Regal Beloit carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Regal Beloit’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 1.48%.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Sun Hydraulics (SNHY) Now a Strong Buy: Should You Add?
On Jun 15, Zacks Investment Research upgraded Sun Hydraulics Corporation to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
In the last one month, the company’s shares have yielded a return of 17.80%, outperforming the gain of 6.56% recorded by the Zacks categorized Machinery General Industrial industry.
Why the Upgrade?
Market sentiments have been favoring Sun Hydraulics for quite some time now. Notably, the company’s shares have rallied 10.90% since the release of impressive first-quarter 2017 results on May 8. Earnings surprise was a positive 5.56% in the quarter. A sneak peek into the results reveals that profitability came on the back of solid sales growth, partially offset by amortization expenses related to acquisition and higher interest expenses.
We believe that Sun Hydraulics will gain from its efforts to improve its operational execution, product development and market penetration. Also, the company’s Enovation Controls assets (acquired in Dec 2016), once fully integrated, will yield synergistic benefits. For 2017, the company anticipates revenues to come in a $295−$310 million range (including $205−$215 million from Hydraulics and $90−$95 million from Electronics). The guidance reflects an increase from $196.9 million generated in 2016. In addition, the company is committed toward rewarding its shareholders with lucrative quarterly dividend payments.
Investors seem to be optimistic about Sun Hydraulics’ future prospects, as evident from positive revisions in earnings estimates for the stock. Over the last 60 days, the Zacks Consensus Estimate for the company increased 6.3% to $1.35 for 2017 and 5.4% to $1.55 for 2018. These estimates represent year-over-year growth of 55.17% for 2017 and 14.81% for 2018.
Sun Hydraulics Corporation Price and Consensus
Sun Hydraulics Corporation Price and Consensus | Sun Hydraulics Corporation Quote
Other Stocks to Consider
Sun Hydraulics Corporation has a market capitalization of $1.18 billion. Other stocks worth considering in the industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While Kennametal and Parker-Hannifin sport a Zacks Rank #1, Regal Beloit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Regal Beloit’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 1.48%.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>