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Here's Why You Should Hold Apogee Stock in Your Portfolio Now

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Apogee Enterprises (APOG - Free Report) is poised to gain from focus on strategy to diversify revenue streams and improve efficiency and productivity of operations. Additionally, efforts to increase market share, expand into new geographies and markets, and roll out products will drive growth.

Apogee currently carries a Zacks Rank #3 (Hold) and a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum. The company’s score is a weighted combination of these three scores. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, make solid investment choices.

You can see the complete list of today's Zacks #1 Rank stocks here.

Factors Favoring Apogee


 

An Outperformer: Apogee’s shares gained 28.8% so far this year, against the industry’s decline of 28.4%.

Positive Earnings Surprise History: The company beat estimates in the trailing four quarters by 6.39%, on average.

Positive Growth Projections:  The company recorded an earnings growth rate of 17.0% in the last five years, outperforming the industry’s growth of 5.9%. This momentum is likely to continue as reflected by Apogee’s projected earnings per share growth of 2.7% and 17.5% for fiscal 2020 and 2021, respectively.

Apogee has a long-term expected earnings per share growth of 10.83%.

Superior Return on Assets (ROA): It currently has a ROA of 7.3%, while the industry's ROA is 3.7%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.

Growth Drivers in Place: Apogee continues to focus on strategy to diversify revenue streams, explore growth opportunities, and improve efficiency and productivity of operations. This positions the company well to deliver stable growth and profitability.

The company is also striving to improve profitability across the entire Framing Systems segment and has taken initial steps to increase supply chain integration, reduce procurement costs, and optimize facility footprint.
Apogee’s segments have the potential to increase market share, expand into new geographies and markets, and introduce new products. With internal market visibility from backlog, commitments and bidding activity, and external metrics moving in the right direction, the company foresees continued market growth for the next few years.

Stocks to Consider

Some better-ranked stocks in the Industrial Products sector are Northwest Pipe Company (NWPX - Free Report) , Tennant Company (TNC - Free Report) and Sharps Compliance Corp . All of these stocks carry a Zacks Rank #1, at present.

Northwest Pipe has an expected earnings growth rate of 15.8% for the current year. The stock has appreciated 48% year to date.

Tennant has a projected earnings growth rate of 29.8% for 2019. The company’s shares have rallied 44% so far this year.

Sharps Compliance has an estimated earnings growth rate of 500% for the ongoing year. Year to date, the company’s shares have gained 22%.

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Apogee Enterprises, Inc. (APOG) - free report >>

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Tennant Company (TNC) - free report >>

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