Industrial machinery companies have been lately dealing with adverse impacts of trade tiffs between the United States and other nations as the former choose to implement import tariffs on an array of products. Few other headwinds, including inflation, shortage of skilled workers, higher freight charges and others, have also been hurting these industrial stocks.
Despite these setbacks, many industrial stocks appear promising. Strengthening housing market, lower taxes on account of implementation of the U.S. Tax Cuts and Jobs Act, investments made to innovate, infrastructural developments and solid manufacturing activities are currently favoring companies that work for general industries.
One such stock is Barnes Group, Inc. (B - Free Report) . This Bristol, CT-based company manufactures products for customers in the industrial and aerospace end markets. The stock currently has a Zacks Rank #2 (Buy) and a favorable VGM Score of B.
At present, the industry to which Barnes belongs is positioned in the top 42% of more than 250 Zacks industries. Per our research, the top 50% of the Zacks-ranked industries outperformed the bottom 50% by a factor of more than 2 to 1. Year to date, Barnes has gained 1.3%, outperforming the industry’s 1% growth but in-line with the Zacks Industrial Products sector’s 1.3% increase.
Below we discussed why Barnes is currently a worthy investment option.
Impressive Earnings Outlook: Barnes delivered better-than-expected results in three of last four quarters while it lagged estimates in one. Notably, it has an average four-quarter positive earnings surprise of 7.04%.
For 2019, the company’s earnings estimates have been revised upwards by four brokerage firms, indicating brighter prospects ahead. Currently, the Zacks Consensus Estimate for earnings is pegged at $3.23 for 2018 (results not yet released) and $3.56 for 2019, reflecting no change and growth of 2.6% from the respective 60-day-ago tally. These estimates also reflect year-over-year growth of 12.2% for 2018 and 10.2% for 2019.
Barnes Group, Inc. Price and Consensus