(TRS - Free Report
) remains well poised for growth on the back of robust end market demand, focus on improving cost structure and momentum in its segments. Focus on leveraging the TriMas Business Model, and a strong pipeline of both product and process innovation will also fuel growth.
Let’s delve deeper into the factors that make this stock an attractive investment option.
What’s Working in Favor of TriMas?
Further, TriMas currently has a VGM Score
of B. Here V stands for Value, G for Growth and M for Momentum. Such a score allows you to eliminate the negative aspects of stocks and select winners. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Northbound Estimates: A positive trend in estimate revisions reflects optimism over the company's prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings for both fiscal 2018 and fiscal 2019 has moved up 1%. The Zacks Consensus Estimate for earnings for fiscal 2018 is pegged at $1.73 projecting year-over-year growth of 24%. For fiscal 2019, the Zacks Consensus Estimate is anticipated to advance 8% to $1.86 per share.
Positive Earnings Surprise History: The company has surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 3.37%.
Shares of TriMas have appreciated around 13% over the past year, against the industry
’s decline of 29%.
Upbeat 2018 Guidance: Backed by year-to-date upbeat performance, TriMas raised full-year 2018 organic sales growth estimate to around 6% year over year from the previous guidance of around 5%. It also hiked earnings per share guidance to $1.72-$1.78 from the previous projection of $1.65-$1.75. Mid-point of the guidance reflects year-over-year increase of approximately 25%.
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. The company has also refocused certain commercial efforts, including realigning and enhancing its sales functions, and improvement of cost structure. Further, TriMas is likely to benefit from the recently implemented Tax reform.
Long-Term Growth Drivers in Place: The company will continue to focus on leveraging the TriMas Business Model to drive performance which will fuel long-term growth. Its innovative solutions through product, process or service, as well as extensive resources will help enhance business performance. The company also has a strong pipeline of both product and process innovation that will sustain long-term growth. Consequently, this positions it well to capitalize on market opportunities and minimize market disruptions. The stock has an estimated long-term earnings growth rate of 5%.
Other Stocks to Consider
Some other top-ranked stocks in the same sector include CECO Environmental Corp. (CECE - Free Report
) , Cintas Corporation (CTAS - Free Report
) and Ingersoll-Rand PLC (IR - Free Report
) . All the stocks carry the same rank as TriMas.
CECO has a long-term earnings growth rate of 15%. The company’s shares have surged 51% in the past year.
Cintas has a long-term earnings growth rate of 12%. Its shares have rallied 23% in the past year.
Ingersoll-Rand has a long-term earnings growth rate of 12%. Its shares have rallied 20% in the past year.
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