Actuant Corporation (EPAC - Free Report) can currently be considered a smart choice for investors seeking exposure in the machinery space. It boasts solid prospects, evident from a positive revision in earnings estimates, and also has strong fundamentals.
This Menomonee Falls, WI-based company currently has a Zacks Rank #2 (Buy). It belongs to the Zacks Manufacturing – Tools & Related Products industry, falling under the broader Zacks Industrial Products sector.
The industry is currently placed in the top 50% of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tends to outperform the bottom 50% by a factor of more than 2 to 1.
Below we discuss why it is worth investing in Actuant.
Healthy Performance and Solid Prospects: The company’s earnings surpassed estimates in all the last four quarters, with a positive earnings surprise of 18.57%, on average. In first-quarter fiscal 2020 results (ended Nov 30, 2019), its earnings of 12 cents per share exceeded the Zacks Consensus Estimate by 33.33%.
We believe that impressive financial results boosted investors’ sentiments for the stock. Notably, the company’s shares have gained 21.3% in the past three months whereas the industry has grown 18.6%.
Actuant anticipates that its cost-saving actions, robust product brands and focus on growth initiatives will be beneficial in fiscal 2020 (ending August 2020). Also, exit from certain product lines (low-margin) in the first quarter will be a boon. Adjusted earnings are predicted to be 68-81 cents per share in the year, indicating a wider expectation from 73 cents recorded in fiscal 2019 (ended August 2019).
Currently, the Zacks Consensus Estimate for Actuant’s earnings is pegged at 74 cents per share for fiscal 2020 and $1.05 for fiscal 2021 (ending August 2021). The consensus mark for fiscal 2020 has been flat with the 30-day ago figure while that for fiscal 2021 moves 1% north.
Actuant Corporation Price and Consensus