Investors seeking exposure in the industrial machinery space can choose from stocks that sport a Zacks Rank #1 (Strong Buy) or #2 (Buy). Of the many investment options, we believe that The Middleby Corporation (MIDD - Free Report) will be a smart choice. This Elgin, IL-based company’s stock currently carries a Zacks Rank #2 and a VGM Score of B.
The industry, to which Middleby belongs, is currently positioned in the top 42% 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 infrastructural development, the strengthening housing market, lower taxes (due to the implementation of the U.S. Tax Cuts and Jobs Act), solid manufacturing activities and other tailwinds.
Below, we discussed why investing in Middleby will be a smart choice for investors.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Middleby over time. In the past six months, the company’s share price has increased by 0.9% against the industry’s decline of 9.3% and the Zacks Industrial Products sector’s decrease of 12.3%.
For 2019, the company’s earnings estimates were revised upward by two brokerage firms, indicating brighter prospects ahead. Currently, the Zacks Consensus Estimate for earnings is pegged at $6.93 for 2019, reflecting growth of 0.6% from the 60-day-ago tally. Further, estimates reflect year-over-year growth of 15.8%.
The Middleby Corporation Price and Consensus