ITT Inc. ITT currently seems to be a smart choice for investors seeking exposure in multi-sector companies. Solid fundamentals and positive earnings estimate revisions are reflective of healthy growth potential of the company.
The New York City-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Diversified Operations industry, which is currently at the top 35% (with the rank of 88) of more than 250 Zacks industries.
We believe that the industry is poised to gain from healthy demand from the defense and governmental arenas, higher global demand for air travel plus technological upgrade in manufacturing processes, and infrastructure development. Additionally, changes in the country’s tax policies, governmental development plans and growth in the manufacturing activities are boons for multi-sector companies.
Below we discussed why investing in ITT will be a smart choice.
Share Price Performance, Earnings Outlook: Market sentiments seem to be working in favor of the company over time. Year to date, its shares have gained 50.3%, while an increase of 18.1% has been recorded in the past three months. The three-month performance compares favorably with the industry’s 7.1% growth.
Notably, the company’s financial performance in the last four quarters was better than expected. In the third quarter of 2019, its earnings surpassed the Zacks Consensus Estimate by 7.78% and grew 18.3% from the year-ago quarter. The bottom-line results benefited from solid sales and improved adjusted operating income.
In the quarters ahead, the company expects the bottom line to gain from increase in sales volume, cost containment, operational execution and supply-chain actions. For 2019, it raised earnings per share projection to $3.73-$3.75 from $3.58-$3.68 stated previously.
In the past 60 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the consensus estimate for earnings is pegged at $3.72 for 2019 and $3.98 for 2020, suggesting growth of 3% and 3.4% from the respective 60-day-ago figures.
ITT Inc. Price and Consensus