Chart Industries, Inc. GTLS can currently be considered a smart choice for investors seeking exposure in the machinery space. It boasts solid growth prospects, evident from positive revision in earnings estimates, and has solid fundamentals.
The Ball Ground, GA-based company currently has a Zacks Rank #2 (Buy) and a VGM Score of A. It belongs to the Zacks Manufacturing – General Industrial industry, which belongs to the broader Zacks Industrial Products sector.
Pro-growth policies of the government, infrastructure investments, growing use of e-retail, use of sophisticated technologies in manufacturing process, and new construction and remodeling activities aid the industry players.
Below we discussed why it is worth investing in Chart Industries.
Healthy Performance and Solid Growth Prospects: The company has surpassed estimates in two of the last four quarters, while lagged estimates in the other two, with a positive earnings surprise of 4.01%, on average.
In the last reported quarter, the company’s earnings of 77 cents per share increased 4.1% year over year. On a sequential basis, the bottom line expanded 13.2%. We believe that impressive financial results helped drive sentiments for the stock. Notably, the company’s shares gained 19.1% in the past three months, whereas the industry grew 17.2%.
In the quarters ahead, Chart Industries will likely gain from acquired assets, healthy contribution from its projects and margin enhancement actions. It predicts adjusted earnings of $2.70-$2.90 per share for 2019, whereas it reported $2.02 a year ago. For 2020, the company anticipates adjusted earnings (in the base business) of $4.75-$5.25.
Also, its earnings estimates for 2020 have been raised by 0.2% to $4.83 per share in the past 30 days. Meanwhile, estimates for 2019 have been unchanged at $2.78 during the same timeframe. Estimates suggest year-over-year growth of 37.6% for 2019 and 73.7% for 2020.
Chart Industries, Inc. Price and Consensus