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.
Valmont (VMI) Inks Deal to Buy CSP Coatings in New Zealand
Read MoreHide Full Article
Valmont Industries, Inc. (VMI - Free Report) entered into an agreement to purchase the assets of CSP Coatings Systems of Auckland, New Zealand. The deal will be funded with cash on hand and is expected to complete in the fourth quarter of fiscal 2018.
CSP is the most comprehensive steel coating service provider in New Zealand. It provides a full range of coatings services, which include zinc metal spraying, hot dip galvanizing, painting, and duplex anti-corrosion coatings. Additionally, CSP serves a broad base of customers and end markets.
The acquisition is in sync with Valmont’s strategy of geographic expansion and also builds on its presence in the New Zealand market. CSP facilities provide a platform to leverage the company’s galvanizing operation on the North Island, while expanding its footprint to the South Island. The buyout also allows the company to grow on an extensive portfolio of coatings services. The company expects to achieve EPS accretion of 6 cents in the first year following the deal closure after taking into account transaction costs.
In a year’s time, Valmont have underperformed the industry it belongs to. The stock has declined around 13.9% against the industry’s growth of 12.2%.
Valmont is 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 anticipates favorable revenues 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 results are expected to be in line with first-half results.
Some better-ranked companies in the basic materials space are ArcelorMittal (MT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
ArcelorMittal has an expected long-term earnings growth rate of 4.8% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 25% in the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have rallied 57.6% in the past year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 10.9% in a year’s time.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Valmont (VMI) Inks Deal to Buy CSP Coatings in New Zealand
Valmont Industries, Inc. (VMI - Free Report) entered into an agreement to purchase the assets of CSP Coatings Systems of Auckland, New Zealand. The deal will be funded with cash on hand and is expected to complete in the fourth quarter of fiscal 2018.
CSP is the most comprehensive steel coating service provider in New Zealand. It provides a full range of coatings services, which include zinc metal spraying, hot dip galvanizing, painting, and duplex anti-corrosion coatings. Additionally, CSP serves a broad base of customers and end markets.
The acquisition is in sync with Valmont’s strategy of geographic expansion and also builds on its presence in the New Zealand market. CSP facilities provide a platform to leverage the company’s galvanizing operation on the North Island, while expanding its footprint to the South Island. The buyout also allows the company to grow on an extensive portfolio of coatings services. The company expects to achieve EPS accretion of 6 cents in the first year following the deal closure after taking into account transaction costs.
In a year’s time, Valmont have underperformed the industry it belongs to. The stock has declined around 13.9% against the industry’s growth of 12.2%.
Valmont is 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 anticipates favorable revenues 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 results are expected to be in line with first-half results.
Valmont Industries, Inc. Price and Consensus
Valmont Industries, Inc. Price and Consensus | Valmont Industries, Inc. Quote
Zacks Rank & Stocks to Consider
Valmont is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials space are ArcelorMittal (MT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
ArcelorMittal has an expected long-term earnings growth rate of 4.8% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 25% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have rallied 57.6% in the past year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 10.9% in a year’s time.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>