Back to top

Image: Bigstock

Here's Why You Should Invest in Ducommun (DCO) Stock Now

Read MoreHide Full Article

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.

VGM Score

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 . 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.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Huntington Ingalls Industries, Inc. (HII) - free report >>

AeroVironment, Inc. (AVAV) - free report >>

Ducommun Incorporated (DCO) - free report >>

Published in