On Sep 17, we issued an updated research report on TriMas Corporation (TRS Quick QuoteTRS - Free Report) . The company will gain from its focus on leveraging the TriMas Business Model. A strong pipeline of both product and process innovation will also propel growth.

 

 

Backed by upbeat first-half performance, TriMas projects earnings per share between $1.65 and $1.75 for 2018, exhibiting year-over-year growth of 21% at the mid-point. The company estimates organic sales to be up around 5%. The Zacks Consensus Estimate for fiscal 2018 for earnings is pegged at $1.72, reflecting year-over-year growth of 23% while revenues are at $864 million, projecting year-over-year improvement of 6%.

 

General industrial activity levels have improved, particularly in the United States, and this bodes well for TriMas. The company is well positioned to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales growth programs. It has also refocused certain commercial efforts, including realigning and enhancing its sales functions along with improvement of cost structure.

 

 

TriMas continues to focus on leveraging the TriMas Business Model in order to drive the company’s performance. Its innovative solutions through product, process or service, as well as extensive resources will help strengthen business. Consequently, by refocusing on these efforts under the business model, TriMas will continue to recognize synergies. This will be aiding results.

 

The company also has a robust pipeline of both product and process innovation that will support long-term growth and position its businesses to capitalize on market opportunities as well as minimize market disruptions.

 

 

The packaging segment, the company’s most profitable business, should benefit from new products and realignment of the segment’s manufacturing presence. The business continues to develop specialty dispensing and closure applications for higher-growth global markets (industrial, food and beverage and heath, beauty and home care). The company is developing its global marketing and salesforce to better align with end-markets and customers. Further, the segment continues to witness robust quoting activity within its existing and new product lines.

 

The Specialty Products segment which incorporates the Lamons, Arrow Engine and Norris Cylinder industrial businesses, will benefit from improved performance in these businesses driven by recovering energy and industrial end-markets. Management also continues to assess the cost structure of the segment.

 

 

 

TriMas has outperformed its industry with respect to price performance over the past year. The stock has appreciated around 19%, against the industry’s decline of 18%.

 

 

TriMas carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Some other top-ranked stocks in the same sector include Atkore International Group Inc. (ATKR), Caterpillar Inc. (CAT) and Flowserve Corporation (FLS). While Atkore sports a Zacks Rank #1, Caterpillar and Flowserve carry a Zacks Rank #2.

 

Atkore has a long-term earnings growth rate of 10%. The company’s shares have gained 41% in the past year.

 

Caterpillar has a long-term earnings growth rate of 16%. Its shares have appreciated 18% over the past year.

 

Flowserve has a long-term earnings growth rate of 17%. The company’s shares have gained 33% in the past year.

 

 

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