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 carries a Zacks Rank #2 (Buy) and has a VGM Score of A. It belongs to the Zacks Manufacturing – General Industrial industry, which belongs to the broader Zacks Industrial Products sector.
Tailwinds — including investments in infrastructural development, favorable changes in tax policies, technological advancement in manufacturing processes, and growth in construction and remodeling activities — are beneficial for the industry players.
Below we discussed why investing in DXP Enterprises will be a smart choice.
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of the company over time. Year to date, its share price has gained 16.1%, higher than the sector’s growth of 5.9%.
We believe that impressive financial results helped in driving sentiments for the stock. The company beat earnings estimates in two of the last three quarters (results reported so far in 2019) and meet the same once. Average earnings surprise for DXP Enterprises was a positive 18.1% for these three quarters. Notably, earnings surprise was 4.29% in the last reported quarter.
In the quarters ahead, the company believes that strengthening end markets as well as its solid execution capabilities will be boons. These along with focus on investing in growth opportunities will be advantageous for its top and bottom-line growth.
Further, the company’s earnings estimates have been raised in the past 30 days. The Zacks Consensus Estimate for its earnings is pegged at $2.39 for 2019, reflecting 0.8% growth from the figure mentioned 30 days ago.
DXP Enterprises, Inc. Price and Consensus