Investors seeking exposure in the security and safety services provider space can choose from stocks that don favorable Zacks Rank #1 (Strong Buy) or #2 (Buy). Of the many investment options, we believe that Brady Corporation (BRC - Free Report) will be a smart choice. The stock currently carries a Zacks Rank #2.
The industry to which Brady belongs is currently positioned in the top 44% of more than 250 Zacks industries. Per our research, the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. We believe that the industry gains from increase in industrial activities worldwide as well as growing awareness for safety and security of work facilities, and workers.
Below we discussed why investing in Brady will be a smart choice for investors.
Share Price and Earnings Performances, Robust Bottom-Line Outlook: Market sentiments seem to be working in favor of Brady over time. In the past year, the company’s share price increased by 11.3% against the industry’s decline of 38.9% and the Zacks Industrial Products sector’s decrease of 24%.
It’s worth mentioning here that the company’s shares gained nearly 1.3% in the past three months. In the last reported quarter (ended October 2018), the company’s earnings of 58 cents per share surpassed the Zacks Consensus Estimate of 53 cents by 9.43%. Including this earnings beat, the average of the last four quarters was a positive 7.04%.
In addition, earnings estimates on the stock have been revised upward in the past 90 days. Currently, the Zacks Consensus Estimate for earnings is pegged at $2.28 for fiscal 2019 (ending July 2019) and $2.47 for fiscal 2020 (ending July 2020), reflecting growth of 3.6% and 2.9% from the respective tallies 90 days ago. Further, these estimates represent year-over-year growth of 11.8% for fiscal 2019 and 8.3% for fiscal 2020.
Brady Corporation Price and Consensus