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Here's Why You Should Buy Altra Industrial Motion (AIMC) Now

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Altra Industrial Motion Corporation’s (AIMC - Free Report) presence in various end markets, solid product offerings and initiatives to keep costs under control make it a solid bet for investors now.

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

In the last three months, the company’s shares have yielded 19.3% return, outperforming 6.4% gain recorded by the industry it belongs to.



Why the Upgrade?

Sentiments have been positive for Altra Industrial Motion in the last two months, evident from three positive revisions in earnings estimates for the stock. The Zacks Consensus Estimate was revised upward by 5.7% for 2017 and 6% for 2018, with estimates currently pegged at $2.03 and $2.28, respectively.

Altra Industrial Motion Corp. Price and Consensus
 

Altra Industrial Motion Corp. Price and Consensus | Altra Industrial Motion Corp. Quote

Also, the company is anticipated to deliver better-than-expected results in the current year and thereafter. It has an Earnings ESP of +0.82% for 2017 and 1.02% for 2018. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Altra Industrial Motion is poised to benefit from its solid product portfolio, including 23 well-recognized brands and 31 production facilities globally. Also, its exposure to various end markets, including energy, general industrial, material handling, metals, mining, special machinery, transportation, & turf and garden, will prove advantageous for top-line growth. Initiatives to keep costs under control and alignment of business operations with the current demand levels will help in improving margins. We believe that such positives will help the company to become a leading global provider of electrochemical power transmission solutions.

In the long term, Altra Industrial Motion anticipates revenue growth to be in excess of the Gross Domestic Product while aims to improve its operating margin by 150 basis points on strategic pricing. Also, effective supply chain management and accretive acquisitions will remain the company’s preferred modes of enhancing profitability.

For 2017, the company has increased its revenue guidance to $850-$865 million from the previous projection of $840-$855 million. Non-GAAP earnings are anticipated to be $1.95-$2.05 per share, up from the earlier forecast of $1.83-$1.93.

Other Stocks to Consider

Altra Industrial Motion has a market capitalization of approximately $1.4 billion. Other stocks worth considering in the industry include Kadant Inc. (KAI - Free Report) , Sun Hydraulics Corporation (SNHY - Free Report) and Barnes Group, Inc. (B - Free Report) . While both Kadant and Sun Hydraulics sport a Zacks Rank #1, Barnes Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kadant’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company delivered an average positive earnings surprise of 19.29% in the last four quarters.

Sun Hydraulics pulled off an average positive earnings surprise of 3.47% for the last four quarters. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.

Barnes Group’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 11.60%.

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