Investors seeking exposure in the industrial machinery space can choose from stocks that currently sport a Zacks Rank #1 (Strong Buy) or #2 (Buy). Of the many investment options, we believe that Chart Industries, Inc. (GTLS - Free Report) will be a smart choice. This Georgia-based company’s stock currently carries a Zacks Rank #2.
We believe that the strengthening housing market, infrastructural development, lower taxes (due to the implementation of the U.S. Tax Cuts and Jobs Act), solid manufacturing activities and other tailwinds will aid industrial machinery companies.
Below, we discussed why investing in Chart Industries will be a smart choice for investors.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Chart Industries over time. In the past three months, its share price has improved 42.3% compared with the industry’s growth of 9.4% and the Zacks Industrial Products sector’s rally of 9.3%.
In the fourth quarter of 2018, the company delivered impressive results, with earnings beating estimates by 12.96%. On a year-over-year basis, the bottom line increased 27.1% on the back of solid revenue growth.
For 2019, the company anticipates gaining from strengthening orders and backlog. It anticipates adjusted earnings per share of $2.50-$2.85, above previously mentioned $2.40-$2.75.
We believe that impressive results and solid outlook created positive sentiments for Chart Industries. In the past 30 days, earnings estimates for the company have been revised upward. Currently, the Zacks Consensus Estimate for earnings is pegged at $2.75 for 2019 and $3.89 for 2020, reflecting growth of 0.4% and 2.1% from the respective tallies 30 days ago.
Chart Industries, Inc. Price and Consensus