Valmont Industries, Inc. (VMI - Free Report) recently announced the acquisition of the operational assets of India-based leading manufacturing facility, Derit Infrastructure Pvt. Ltd. The state-of-the-art facility has manufacturing capabilities for steel lattice structures for power generation, wireless communication, power transmission facilities. It also provides zinc galvanizing services. The deal was funded with cash while the others financial terms have been kept under wraps.
Valmont is poised to benefit from Derit’s 40,000 metric tons of lattice manufacturing capacity which will provide it with global expansion for telecommunication lattice products and an instant ability to begin quoting and building a backlog for utility lattice products. The acquisition also allows the company to enter into the global lattice structures market.
In the past six months, Valmont’s shares have lost 8.3% against the industry’s 10.6% growth.
Valmont remains optimistic about its markets and businesses for the rest of 2018. As a result of pricing actions and improved demand in the lighting and traffic business, Valmont anticipate favorable revenue and profit comparisons in the Engineered Support Structures segment.
However, results in the Irrigation segment are expected to deteriorate from last year due to challenging end-market conditions. Owing to strong industrial demand, the Coatings segment is expected to perform in line with first-half results.
Valmont Industries, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
Valmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Huntsman Corporation (HUN - Free Report) , Celanese Corporation (CE - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have soared 30.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% carries a Zacks Rank #1 The stock has rallied 21.8% in a year.
Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Its shares have gained 10.8% in a year’s time.
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