Estimates for Ducommun Incorporated (DCO - Free Report) have been revised upward in the past 60 days, which reflects analysts’ optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 24.3% and 3.0% to 92 cents and $2.02, respectively.
Ducommun provides engineering and manufacturing products as well as services primarily to the aerospace, defense, industrial, natural resources, medical and other industries in the United States.
The company’s shares have surged 38.4% in the past six months compared with the industry’s rise of 8.0%.
Let’s focus on the factors that make Ducommun an appropriate investment option.
Zacks Rank & Surprise Trend
Ducommun carries a Zacks Rank #2 (Buy).The company pulled off an average positive earnings surprise of 129.04 % in the last four quarters.
Year-Over-Year Estimates & Backlog
Ducommun’s year-over-year earnings growth for 2019 is estimated at 119.57% and sales growth for 2019 is projected at 2.49%. The company’s backlog as of June 30, 2018 was $823 million. A total backlog of $558.0 million is expected to be delivered in the next 12 months, which is likely to boost the company’s revenues in the near-term.
Ducommun has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Long term Plans
Ducommun focuses on operational excellence, advanced technology and acquisitions. These factors establish the company’s position in the aerospace and defense industry as the unique provider of a broader array of electronic and structural applications.
The company’s acquisitions of Certified Thermoplastics Co., LLC (“CTP”) and Lightning Diversion Systems, LLC (“LDS”) were fully integrated and are contributing to its technology portfolio.
Other Stocks to Consider
A few other top-ranked stocks in the same sector are AeroVironment, Inc (AVAV - Free Report) , Huntington Ingalls Industries, Inc (HII - Free Report) and FLIR Systems, Inc (FLIR - Free Report) . While AeroVironment sports a Zacks Rank #1 (Strong Buy), Huntington Ingalls and FLIR Systems carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AeroVironment delivered an average positive earnings surprise of 365.27% in the past four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings moved up 22.5% in the past 60 days.
Huntington Ingalls Industries came up with an average positive earnings surprise of 9.48% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings inched up 1.5% in the past 60 days.
FLIR Systems Holdings pulled off an average positive earnings surprise of 8.94% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings inched up 0.9% in the past 60 days.
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