DXP Enterprises, Inc. (DXPE - Free Report) currently seems to be a smart choice for investors seeking exposure in the manufacturing space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Houston, TX-based company currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. It belongs to the Zacks Manufacturing – General Industrial industry, which belongs to the broader Zacks Industrial Products sector.
We believe that technological advancement in manufacturing processes, investments in infrastructural development, growth in construction and remodeling activities, and favorable changes in tax policies have been benefiting the industry.
Below we discussed why investing in DXP Enterprises will be a smart choice.
Impressive Financial Performance and Earnings Outlook: DXP Enterprises’ solid financial performances — with a positive average earnings surprise of 46.55% — have been beneficial in building positive sentiments for the stock.
It is worth mentioning here that the company delivered earnings beat of 50% in the fourth quarter of 2018. Its share price has increased roughly 38.4% since the release of results on Mar 7, 2019, outperforming the industry’s growth of 9.2%.
DXP Enterprises anticipates that organic growth opportunities, strong cash generation, healthy balance sheet and geographically diversified businesses will be advantageous in the quarters ahead.
In the past 60 days, earnings estimates for the company have been revised upward, reflecting optimism about its growth prospects. Currently, the Zacks Consensus Estimate for earnings stands at $2.36 for 2019, reflecting growth of 5.8% from the 60-day-ago tally. This estimate reflects year-over-year growth of 21.7%.
DXP Enterprises, Inc. Price and Consensus