Brady Corporation (BRC - Free Report) currently seems to be a smart choice for investors seeking exposure in security and safety services. The company’s fundamentals are strong. Further, its upwardly revised earnings estimates made it more lucrative.
This Milwaukee, WI-based company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. It belongs to the Zacks Security and Safety Services industry, currently placed in the top 39% (with Zacks Industry Rank #99) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
We believe that providers of security and safety services gain 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 Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Brady over time. In the past year, the company’s share price has gained 26.1% against the industry’s decline of 0.1%.
It is worth mentioning here the company delivered positive earnings surprise in the three of the last four quarters while recorded in-line results once. Average earnings surprise is a positive 5.71%. In the second quarter of fiscal 2019 (ended Jan 31, 2019), the company’s earnings beat the Zacks Consensus Estimate by 3.77%.
For fiscal 2019 (ending July 2019), Brady anticipates gaining from investments to develop products, automation of manufacturing facilities and driving operational excellence. It now anticipates earnings per share of $2.25-$2.35, higher than the previously mentioned $2.20-$2.30. Also, the mid-point of the new projection is higher than earnings of $1.73 per share recorded in fiscal 2018 (ended July 2018).
In the past 60 days, earnings estimates for fiscal 2019 have been revised upward by three brokerage firms and for fiscal 2020 (ending July 2020) increased by one. Currently, the Zacks Consensus Estimate is pegged at $2.31 for fiscal 2019 and $2.49 for fiscal 2020, reflecting growth of 1.3% and 0.8% from the respective 60-day-ago tallies.
Brady Corporation Price and Consensus