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Eaton Corporation ETN shares are trading at a premium compared to the Zacks Manufacturing-Electronics industry. Its forward 12-month Price/Earnings of 26.68X is higher than the broader sector’s 19.19X and the Manufacturing-Electronics Industry’s 22.78X.
Eaton’s near-term prospects look bright, given its VGM Score of B. The stocks with a high VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers.
Eaton’s shares have gained 44.2% in the last year, outperforming its industry, sector and Zacks S&P 500 Composite’s return in the same time frame.
Eaton Outperforms Industry, Sector & S&P 500 Last Year
ETN shares are trading above the 50-day moving average, indicating a bullish trend.
Investors might ponder whether the premium valuation of Eaton is justified at this present moment. Let’s find out why Eaton commands a premium valuation.
Eaton’s Shares Trading a Premium on a P/E (F12M)
Eaton’s Research & Development & Global Presence
Eaton’s approach to research and development (R&D), is focused on leveraging technology to design solutions that meet the needs of our customers today and into the future. Eaton continues to evolve, improving its manufacturing processes while strengthening its supply chain and ensuring teams are equipped with the required skills and knowledge of the latest engineering principles and practices to meet evolving market demands.
Eaton has laid out a 10-year plan that includes a $3 billion investment in R&D programs, which will allow the company to create sustainable products. Rising demand from Data centers, Commercial & Institutional and Industrial customers will require more advanced products and Eaton through its new product development, capture a sizeable chunk of orders from these markets.
Eaton’s products are supplied to around 175 countries and most importantly, this, in a sense, provides stability to the revenue generation ability of the company, as the loss of a customer will not have any significant impact on revenues and margins. Its diversified product portfolio offering energy-efficient solutions will help to serve a broad customer base.
Courtesy of the strong demand and improvement in different end markets Eaton operates, the company expects its organic revenue growth in the range of 8-9% and segment operating margin in the range of 23.3-23.7% for 2024.
Eaton Continues to Expand Through Acquisition
Eaton enjoys strong organic growth from its existing assets and further expands its operation through acquisition. In the first half of 2024, it completed three acquisitions, which further boosted its Electrical Global and Electrical Americas Business segments. These two business segments together contribute nearly 70% total revenues of the company.
Both these segments continue to receive orders from their customers. Eaton’s backlog growth, with orders, increased 29% and 16% in Electrical Americas and Electric Global, respectively, on a rolling 12-month basis. Eaton expects its Electrical Americas and Electrical Global to register an organic revenue growth of 11.5-13.5% and 2.5-4.5%, respectively, in 2024.
Eaton’s Return on Asset Better Than Industry
Eaton’s trailing 12-month return on assets is 10.62%, ahead of the industry average of 5.61%. Return on assets (ROA), measures how efficiently the company is utilizing its assets to generate profits. The current ROA of Eaton indicates that it is using its assets more resourcefully compared to its peers and generating a better return.
Eaton’s Rising Earnings Estimates
Courtesy of strong performance and ongoing improvement in the end market conditions, Eaton revised its adjusted earnings per share in the range of $10.65-$10.75 for 2024, indicating an increase of 17% at the midpoint from the prior-year levels.
The Zacks Consensus Estimate for ETN’s 2024 and 2025 earnings per share has moved up 1.99% and 2.1%, respectively, in the last 60 days. The Zacks Consensus Estimate of fiscal 2024 earnings per share of Powell Industries POWL, another operator in this space, moved up by 32.8% in the last 60 days.
Eaton Raises Shareholder’s Value
Courtesy of its stable cash flow, the company has been increasing shareholder value through dividend payments and share repurchases. In 2024, it expects free cash flow in the range of $3.4-$3.6 billion compared with $2.9 billion in 2023.
Eaton continues to increase the value of its shareholders through share buybacks and regular dividend payments. In the first half of 2024, it repurchased 4.2 million shares for a total of $1.34 billion. The company has plans to repurchase shares in the range of $1.5-$2.5 billion in 2024.
Eaton also distributes regular dividends to its shareholders. ETN’s management has raised dividends for 15 consecutive years and raised its quarterly dividend rate during the first quarter of 2024. The current annual dividend is $3.76 per share, reflecting a dividend yield of 1.25%, better than its industry’s yield of 0.55%.
Summing Up
Eaton continues to benefit from stable contributions from its organic assets spread across the globe. Strategic acquisitions are further expanding its product portfolio and market reach.
Eaton upgrades the quality and develops efficient products through research and development work, that caters to the increasing demand of all customer classes.
Given Eaton’s positive movement in earnings estimates, strong return on assets, strong backlog and rising free cash flow generation, a premium valuation is justified for this Zacks Rank #2 (Buy) stock. Eaton is currently an ideal candidate to add to your portfolio.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Investment Research
On CNBC's “Mad Money Lightning Round,” Jim Cramer said he likes Pfizer Inc. and recommended buying more of the stock.
On Sept. 16, Cantor Fitzgerald analyst Louise Chen reiterated Pfizer with an Overweight rating and maintained a $45 price target.
“Six Flags F, I don't know, it feels like it's two flags,” Cramer said. “This has just been a merger from hell. I'm not really into the stock.”
On Sept. 16, JPMorgan analyst Matthew Boss maintained Six Flags Entertainment with an Underweight rating and lowered the price target from $48 to $43.
Cramer said he likes First Solar, Inc. , adding that it is an “up stock.”
On Sept. 16, BofA Securities analyst Julien Dumoulin-Smith maintained First Solar with a Buy and raised the price target from $320 to $343.
The “Mad Money” host said Equity Residential is an “amazing” stock, and added that it's a “total winner.”
On Sept. 16, several analysts, including, Scotiabank, Evercore ISI Group and JPMorgan, raised their price targets on the stock.
Moderna, Inc. has been a “big disappointment,” Cramer said.
Moderna announced on Tuesday that Health Canada approved its vaccine, SPIKEVAX, which aids in preventing COVID-19 in people six months of age or older.
“On a pullback, absolutely,” Cramer said when asked about Vertiv Holdings Co . “I think it's a winner.”
On Sept. 11, Vertiv named Frank Poncheri as chief human resources officer.
Cramer said Powell Industries, Inc. is a buy.
On July 30, Powell Industries reported better-than-expected third-quarter GAAP EPS and sales results.
Price Action:
Read Next:
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Investors generally consider a 52-week high a good criterion for determining an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculation is not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Century Communities CCS, Powell Industries POWL, Sylvamo SLVM, IAMGOLD IAG and Universal Health Services UHS are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
52-Week High: A Good Indicator
Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Setting the Right Filters
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .80
This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0
It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0
This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed
The lower, the better.
P/E using F(1) Estimate <= XIndMed
This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
One-Year EPS Growth F(1)/F(0) >= XIndMed
This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank =1
No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 5
This parameter will help screen stocks that are trading at $5 or higher.
Volume – 20 days (shares) >= 100000
The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our five picks out of the 13 stocks that made it through the screen:
Century Communities is a home building and construction company. Its activities comprise land acquisition, development and entitlements, and the acquisition, development, construction, marketing, and sale of various single-family detached and attached residential home projects. The company’s initiative of offering affordable homes along with several incentive offerings, including lot premiums, interest rate buydowns and discounts on base home prices, is expected to be a tailwind. Also, its focus on building homes on a spec basis bodes well. This initiative of the company helps in direct cost control, sparks the availability of quick move-ins and assures buyers of financing certainty.
Furthermore, despite the improving inventory of existing home sales, the company is likely to benefit from increasing new home contracts, thanks to its improved cycle times and increased level of home starts. The company’s focus on affordability, along with the reduced cycle times and cost-reduction initiatives, positions it well for the rest of 2024.
The Zacks Consensus Estimate for 2024 earnings has moved north by 0.8% to $10.72 per share in the past 30 days. CCS surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 35.57%.
Powell Industries is a prominent electrical equipment manufacturer, riding on its strong foothold and improving conditions in two key markets — oil and gas and petrochemical. The company’s efforts to strengthen its project portfolio beyond the core oil and gas, and petrochemical end markets have also enhanced its market share across the utility, commercial and other industrial markets. POWL is also benefiting from increased demand for electrical power from data centers.
Powell is strengthening its participation across the electrical power value chain and benefiting from solid momentum in data center and utility markets. The company witnessed strong bookings in electric utility and commercial markets in the first nine months of fiscal 2024 in the United States. Powell’s capacity expansion initiatives, particularly at the product factory in Houston, bode well. The expansionary efforts have been enabling the company to better serve its customers with enhanced offerings across data centers, hydrogen, carbon capture and other transitional energy markets.
The Zacks Consensus Estimate for fiscal 2024 earnings has remained steady at $12.01 per share over the past 30 days. POWL surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 69.88%.
Sylvamo produces and markets uncoated freesheet for cut size, offset paper and pulp. Stronger order books and higher pulp and paper prices are likely to aid its top-line growth in the near term. The company has initiated a cost-reduction program called Project Horizon, which is focused on streamlining its organization and cost structures in an effort to make a leaner, stronger company.
SLVM is on track to realize savings of at least $110 million by the end of 2024. Around $80 million of the target will come from operational improvements in its mills and supply chains and the balance from the reduction in selling and administrative expenses. The company continues to lower its debt levels and maintains a strong financial position that enables it to invest in its business. It has a pipeline of more than $200 million of high-return capital projects, which will boost its earnings and cash flow profile.
Earnings estimates for Sylvamo’s fiscal 2024 have remained steady at $7.40 per share over the past 30 days. SLVM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.97%.
IAMGOLD is an international gold exploration and mining company based in Canada. IAG is poised for growth, supported by an upward trend in gold prices, the ongoing ramp-up at Côté Gold, and the established portfolio of early-stage and advanced exploration projects within high-potential mining districts. IAG continues to invest in maximizing production and increasing the life of its existing mines, advancing development and exploration projects.
IAMGOLD expects production from the Côté Gold mine in 2024 to be near the lower end of 130,000-175,000 ounces (on a 60.3% basis). IAG has the financing in place and is set to buy a 9.7% interest in Côté Gold on Nov. 30, 2024. This will take its stake in the project to 70%. We expect the contribution from the mine to IAG’s production in 2024 to be higher once this deal is completed. Significant operational projects planned for the next years include the Westwood ramp-up to safely access other mining areas that were affected by the seismic activity in 2020.
The Zacks Consensus Estimate for 2024 earnings has moved north by 5.1% to 41 cents per share in the past 30 days. IAG surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 200%.
Universal Health Services owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. Universal Health's Acute Care and Behavioral Health segments have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. The company anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs. Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities. It beat second-quarter earnings estimates on Acute Care strength. The company maintains a robust liquidity position, enabling it to pursue growth initiatives and distribute capital through buybacks and dividends. It has resorted to a constant dividend payout of 20 cents per share since 2019.
The Zacks Consensus Estimate for UHS’ 2024 earnings has remained steady at $15.91 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.58%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance/.
Zacks Investment Research
Reporter Name | Cope Brett Alan |
Relationship | President & CEO |
Type | Sell |
Amount | $467,524 |
SEC Filing | Form 4 |
Brett Alan Cope, President & CEO of Powell Industries, sold 2,750 shares of common stock on September 13, 2024, at weighted average prices ranging from $168.16 to $171.54, totaling $467,524. Following these transactions, Cope directly owns 143,237 shares of Powell Industries. The sales were conducted under a Rule 10b5-1 trading plan adopted on February 26, 2024.
SEC Filing: POWELL INDUSTRIES INC [ POWL ] - Form 4 - Sep. 17, 2024
Monday, September 16, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp. (BAC), Advanced Micro Devices, Inc. (AMD) and Linde plc (LIN), as well as two micro-cap stocks Comstock Holding Companies, Inc. (CHCI) and Kingsway Financial Services Inc. (KFS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Bank of America’s shares have outperformed the Zacks Banks - Major Regional industry over the past six months (+8.7% vs. +7.5%). The company’s net interest income (NII) will be positively impacted by the current high-rate regime and also rate cuts, however high funding costs are a concern.
The Zacks analyst projects NII to witness a CAGR of 1.9% by 2026. Its plans to open financial centers in new and existing markets and improve digital capabilities. These will support the top line. We project total revenues to grow 2.9% in 2024.
While the capital markets activity is showing signs of revival, the challenging macroeconomic environment might weigh on the investment banking (IB) business. Thus, fee income growth will likely be muted. We project fee income to rise in 2024 and decline in 2025. Due to continued investments in franchise, operating costs will remain high. We expect expenses to rise 1% in 2024.
(You can read the full research report on Bank of America here >>>)
Shares of AMD have gained +3.3% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +26.4%. The company is benefiting from portfolio strength and an expanding partner base. It expects third-quarter 2024 revenues to grow 15% sequentially and 16% year over year driven by strong growth in the data center and the client segment.
Exiting second-quarter 2024, AMD had more than 900 public cloud instances available, with Netflix and Uber selecting fourth-gen EPYC public cloud instances. In the data center AI business, MI300 quarterly revenues exceeded $1 billion for the first time.
The momentum is expected to continue in the rest of 2024. Enterprise and Cloud AI customer pipeline remains robust. AMD and its partners, including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro, have instinct platforms in production. However, weakness in the embedded and gaming business is a headwind.
(You can read the full research report on AMD here >>>)
Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the year-to-date period (+15.2% vs. -16.4%). The company is a global leader in industrial gas manufacturing, supplying a wide range of essential gases to industries such as energy, steel, healthcare, manufacturing and electronics.
The firm secures long-term contracts with key on-site clients featuring minimum purchase agreements, helping to stabilize earnings during economic downturns. With a track record of raising dividends for 31 consecutive years, Linde remains committed to rewarding shareholders, supported by its robust business model.
However, increasing competition for new projects poses challenges to the company's return on investment. Additionally, the volatility of energy prices, particularly for natural gas and diesel fuel, presents a significant concern for profitability. Increasing regulatory burden may negatively impact the industrial gas producer’s overall financial health.
(You can read the full research report on Linde here >>>)
Shares of Comstock have outperformed the Zacks Building Products - Home Builders industry over the year-to-date period (+87.5% vs. +28.7%). This microcap company with market capitalization of $81.95 million recorded strong revenue growth of 11% year over year, reaching $21.4 million in the first half of 2024. This growth is driven by high demand for its premium, transit-oriented properties like The Hartford and Reston Metro Plaza, with fully leased spaces attracting high-profile tenants such as Google, Rolls-Royce, and GuidePoint Security.
The company’s focus on urban, commuter-friendly developments positions it well to capture long-term growth in the Washington D.C. market. Comstock's asset-light, debt-free model, combined with access to a $10 million credit facility, provides ample financial flexibility for future developments. Its diversified tenant base and strong occupancy rates reduce vacancy risk.
However, the company faces concentration risk with heavy reliance on key developments. A structural shift toward remote work also poses challenges to its office leasing performance.
(You can read the full research report on Comstock here >>>)
Kingsway Financial Services’ shares have underperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (-7.4% vs. +26.3%). This microcap company with market capitalization of $216.37 million recently bought Systems Products International, Inc. ("SPI") and Digital Diagnostics Imaging, Inc. ("DDI") which boosted adjusted EBITDA to a run-rate of $16 million-$17 million.
Kingsway Financial Services targets two to three acquisitions annually, each expected to add $1 million-$3 million in EBITDA. The Extended Warranty segment (66% of revenue) provides high-margin, recurring income and has expanded beyond auto warranties to include heating, ventilation, air conditioning (HVAC) and plumbing. Its $626 million in net operating loss carryforwards (NOLs) provide tax advantages and enhance cash flow for reinvestment.
However, debt levels rose to $37.7 million, posing risks. Limited cash flow, sluggish revenue growth and execution challenges in acquisitions add pressure.
(You can read the full research report on Kingsway Financial Services here >>>)
Other noteworthy reports we are featuring today include IBM Corp. (IBM), Eaton Corp. plc (ETN) and Deere & Co. (DE).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Branch Openings, Rates Support BofA (BAC), Fee Income Ails
Strong Product Portfolio & Partner Base Aid AMD's Prospects
Linde's (LIN) Long-Term Contracts With Minimum Volume Aid
Featured Reports
Solid Growth in Software Segment, Strategic Buyouts Aid IBM
Per the Zacks Analyst, higher demand in the Software and Infrastructure segments is boosting IBM's top line. Strategic buyouts further aid the company.
Wide Market Reach, New Product Development Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
Deere (DE) Gains from Pricing Efforts Amid Low Demand
Per the Zacks analyst, low commodity prices and farm income will hurt demand for Deere's agricultural equipment. However, this will be offset by its pricing actions and cost-reduction efforts.
Rosy Air-Travel Demand Aids Delta (DAL) Amid High Costs
The Zacks analyst is pleased with the upbeat passenger volumes due to the buoyant air-travel demand scenario. High fuel and labor costs represent a headwind.
Insulet (PODD) Thrives on Omnipod 5, Macro Challenges Worry
The Zacks analyst is upbeat about Insulet's Omnipod 5 nearing $0.5 billion in annual international revenue with only 2 full country launches and two more starting. Yet, economic woes can ail growth.
Strong Demand for Key Drugs Drive BioMarin's (BMRN) Topline
While BioMarin's key drugs like Vimzim and Naglazyme continue to drive sales, the Zacks Analyst is encouraged by rapid uptake for new drug Voxzogo which has opened up a new sales opportunity.
Flowers Foods (FLO) Driven by Focus on Branded Retail Sales
Per the Zacks analyst, focus on branded retail products has been driving Flowers Foods. In second quarter, branded retail sales formed 64.4% of total sales, fueled by core brands like DKB and Canyon.
New Upgrades
Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst likes Diamondback Energy's extremely low oil price breakeven costs, wherein the company needs the commodity to be at just $40 a barrel to be profitable.
Strategic Plans & Improving Housing Trends Aid Mohawk (MHK)
Per the Zacks analyst, Mohawk is benefiting from its focus on restructuring and productive initiatives, improving new residential construction trends, and low input costs.
Expanding User Base, Content Portfolio Aids SiriusXM (SIRI)
Per the Zacks analyst, SiriusMX is benefiting from strength in subscriber base backed by a solid content portfolio and expanded podcast efforts.
New Downgrades
Soft Pet Segment Likely to Hurt Central Garden (CENT) Sales
Per the Zacks analyst, a challenging operating environment and softness in Pet segment have made things tough for Central Garden & Pet Company. Organic net sales for the Pet segment fell 2.2% in Q3.
Exposure to Cat Loss, High Cost Ail Selective Insurance (SIGI)
Per the Zacks analyst, Selective Insurance's exposure to cat loss poses an inherent risk to the P&C insurance business inducing volatility to results. Rising expenses weigh on margin expansion.
F5 (FFIV) Gains From Growth in its Software Business
Per the Zacks analyst, F5 is riding on strong growth in software, driven by security offerings, such as web application firewall, bot defense and mitigation products.
Zacks Investment Research
For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Belden (BDC) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Belden is one of 219 companies in the Industrial Products group. The Industrial Products group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Belden is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BDC's full-year earnings has moved 4.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, BDC has moved about 33.4% on a year-to-date basis. At the same time, Industrial Products stocks have gained an average of 2.8%. This means that Belden is outperforming the sector as a whole this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is Powell Industries (POWL). The stock has returned 90.4% year-to-date.
Over the past three months, Powell Industries' consensus EPS estimate for the current year has increased 32.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Belden belongs to the Wire and Cable Products industry, a group that includes 3 individual stocks and currently sits at #235 in the Zacks Industry Rank. On average, this group has lost an average of 18.2% so far this year, meaning that BDC is performing better in terms of year-to-date returns.
In contrast, Powell Industries falls under the Manufacturing - Electronics industry. Currently, this industry has 16 stocks and is ranked #25. Since the beginning of the year, the industry has moved +8.3%.
Investors with an interest in Industrial Products stocks should continue to track Belden and Powell Industries. These stocks will be looking to continue their solid performance.
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