CNH Industrial N.V. (CNHI - Free Report) recently signed an agreement to acquire ATI Inc., a global manufacturer of rubber track systems. The acquisition will include the U.S.-based engineering and manufacturing plant of ATI Track Systems.
The buyout will provide factory-fit industry-leading track technology to customers of Case IH and New Holland Agriculture, CNH Industrial’s global agricultural brands. It will also allow customers to customize based on their floatation, suspension and traction requirements.
With this purchase, the track systems will be available on Case IH and New Holland combines produced in CNH Industrial’s U.S. plant beginning 2020.
Per CNH Industrial, the acquisition of ATI Track Systems is part of its strategic buy-out program to drive consolidation in the agricultural segment. This addition will also strengthen CNH Industrial’s track-leadership position by providing multi-patented, industry-leading track technology to professional agribusinesses.
Apart from the acquisition, CNH Industrial recently entered into two distinct industry cooperative agreements with DataConnect and DKE Agrirouter.
DataConnect would allow mixed-fleet users to enable the exchange of machine data among the Case IH, STEYR and New Holland Agriculture brands. Meanwhile, DKE Agrirouter, currently including 17 OEM brands and more than 30 digital service providers, will enable customers to exchange task data between brands.
Zacks Rank & Stocks to Consider
Currently, CNH Industrial carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Auto-Tires-Trucks sector are Spartan Motors, Inc. , SPX Corp. (SPXC - Free Report) and BRP Inc. (DOOO - Free Report) . While Spartan Motors sports a Zacks Rank #1 (Strong Buy), SPX and BRP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spartan Motors has an estimated earnings growth rate of 85.42% for the ongoing year. The company’s shares have surged roughly 113.9% in a year’s time.
SPX has an expected earnings growth rate of a whopping 23.18% for 2019. The company’s shares have surged 59.9% in the past year.
BRP has a projected earnings growth rate of 18.49% for the current year. Its shares have gained around 14.4% over the past year.
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