Enerpac Tool Group Corp. EPAC highlighted its business actions to mitigate the adverse impacts of the coronavirus outbreak. Notably, owing to the pandemic and the volatile oil market, the company has been experiencing low global order rates along with end-market uncertainties. In response to the crisis, Enerpac has been executing several cost-control measures to maintain a healthy capital structure. As noted, the company remains focused on eliminating discretionary expenses, and unnecessary operating costs and capital expenditure in each of its global operations. Also, it applied a two-week furlough program for all of its salaried employees based in the United States apart from suspending its 401k match on a temporary basis. Moreover, the company has suspended its FY20 annual bonus program. It is worth noting that Enerpac remains open to implement similar measures across its operations outside the United States, in line with employment regulations and local law. In addition, the company has taken measures to ensure the safety, health and well-being of its employees and partners in all of its operating regions amid the crisis. Bottom Line The COVID-19 pandemic has dealt a major blow to the manufacturing sector, which was already reeling under the U.S.-China trade tensions and weak global demand. Factory closures across the globe, supply-chain disruptions, low demand for goods and the impacts of the restrictions imposed by several governments, among others, have been affecting the sector. Zacks Rank, Price Performance and Estimate Trend Enerpac, with a $1-billion market capitalization, currently carries a Zacks Rank #3 (Hold). Year to date, the company’s share price has decreased 34.3% compared with the industry’s decline of 33.6%.
In the past seven days, the Zacks Consensus Estimate for its earnings has been lowered by 3.8% to 50 cents for fiscal 2020 and by 2.6% to 76 cents for fiscal 2021. Key Picks Some better-ranked stocks from the Zacks Industrial Products sector are Acco Brands Corporation ( ACCO Quick Quote ACCO - Free Report) , Alarm.com Holdings, Inc. ALRM and Broadwind Energy, Inc. BWEN. All the companies currently carry a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters. Alarm.com delivered a positive earnings surprise of 19.30%, on average, in the trailing four quarters. Broadwind Energy delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters. Biggest Tech Breakthrough in a Generation Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>