Regal Beloit Corporation (RBC - Free Report) currently seems to be a smart choice for investors seeking exposure in the machinery space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Beloit, WI-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Manufacturing-Electronics industry, currently placed in the top 36% (with Zacks Industry Rank #91) 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.
Below we discussed why investing in Regal Beloit will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Regal Beloit over time. In the past three months, the company’s share price has gained 17.7% against the industry’s growth of 9.8%.
It is worth mentioning here that the company’s shares have increased roughly 10% since the release of fourth-quarter 2018 results on Feb 4, 2019. Earnings in the reported quarter were $1.41 per share, roughly 7.6% above the Zacks Consensus Estimate and 22.5% higher than the year-ago figure.
For 2019, the company anticipates gaining from pricing and solid product portfolio. Adjusted earnings in the year are predicted to be $6.15-$6.55 per share. The mid-point of the guidance is above $6.00 recorded in 2018.
In the past 60 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the Zacks Consensus Estimate is pegged at $6.43 for 2019 and $7.04 for 2020, reflecting growth of 0.2% and 1.4% from the respective 60-day-ago tallies.
Regal Beloit Corporation Price and Consensus