Roper Technologies, Inc. (ROP - Free Report) currently seems to be a smart choice for investors seeking exposure in the industrial machinery space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
The Sarasota, FL-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Manufacturing – General Industrial industry, which is in turn a sub-industry of Zacks Industrial Products sector. More construction and remodeling activities, infrastructural development, lower taxes (due to the implementation of the U.S. Tax Cuts and Jobs Act), technological advancement in manufacturing processes, and other tailwinds aid the industry.
Below, we discussed why investing in Roper will be a smart choice for investors.
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of the company over time. In the past year, its share price has gained 19.5%, higher than the industry’s growth of 2%.
We believe that impressive financial results helped in driving sentiments for the stock. The company beat earnings estimates in the last four quarters, the average earnings surprise being 6.92%. Notably, earnings surprise was 0.99% in the last reported quarter.
For 2019, the company anticipates gaining from solid sales, unique niche market strategy, healthy balance sheet and acquired assets. It predicts adjusted earnings per share to be $12.94-$13.06 in the year, higher than the previously stated $12.70-$13.00.
Further, the company’s earnings estimates have been raised in the past 30 days. The Zacks Consensus Estimate for its earnings is pegged at $13.00 for 2019 and $13.36 for 2020, reflecting respective growth of 0.2% and 0.8% from the figures mentioned 30 days ago.
Roper Technologies, Inc. Price and Consensus