Latest news for AMADA Co (OTC:AMDLY) Stock

AMADA CO LTD ADR

AMADA Co Ltd manufactures and sells metalworking machinery and tools for customers in many business areas. Its heavy equipment fabricates, cuts, and welds different metals for customized and standard solutions. In addition, the company offers stamping press machines, multiprocess centers, and grinding machines to develop various tools.

AMADA Co Ltd

The industrial sector is well-positioned for robust growth and expansion, propelled by consumer demand for industrial products and services, infrastructure development, government backing, and technological advances. Thus, quality industrial stocks Siemens Aktiengesellschaft (SIEGY), AptarGroup (ATR), and Amada Co. (AMDLY) could be ideal buys for potential gains. Read more… The industrial sector, which includes manufacturing, construction, and more, has a solid footing, with several factors such as technological innovation, sustained consumer demand for industrial products and services, growing investments in infrastructure, and favorable government funding and policies, attributing to the sector's growth.
Given the industry's tailwinds, it could be wise to invest in fundamentally sound industrial stocks Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>), AptarGroup, Inc. (<a href="https://stocknews.com/stock/ATR/">ATR</a>), and Amada Co. Ltd. (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>) for substantial returns.
Despite labor shortages and continued supply chain disruptions, the <a href="https://www.oracle.com/industrial-manufacturing/industrial-manufacturing-trends/">manufacturing industry stands sturdy</a> and will continue to witness significant growth in the foreseeable future. Production of industrial goods, including aircraft, automobiles, chemicals, consumer electronics, heavy machinery, oil, and steel, is exceeding pre-pandemic levels.
With the rapid expansion of the manufacturing sector, the industrial machinery industry is poised for significant profitability in the upcoming years. Further, the industry's prospects are driven by the demand for automation and the modernization of the production process. The industrial machinery market is estimated to reach $777.35 billion in 2028, <a href="https://www.thebusinessresearchcompany.com/report/industrial-machinery-global-market-report#:~:text=The%20industrial%20machinery%20market%20size,manufacturing%20industry%20and%20economic%20growth.">growing at a CAGR of 7.2%</a>.
The industrial packaging market is also picking pace with the increasing volume of resources and products being transported across various regions. Amid the rigid plastic regulations, more and more companies are engaging and launching new and innovative products in line with the changing demand for sustainable and recyclable industrial packaging.
The industrial packaging market is expected to be valued at $66.27 billion in 2024. The market is further anticipated to grow at a <a href="https://www.mordorintelligence.com/industry-reports/industrial-packaging-market">CAGR of 4.7%</a> during the forecast period (2024-2029), resulting in a market volume of $83.45 billion by 2029.
Supportive government funding &amp; policies and numerous technological advancements will further shape industrial manufacturing trends this year and beyond.
Government initiatives, such as the CHIPS and Science Act, which <a href="https://www.nytimes.com/2022/09/06/business/economy/biden-tech-chips.html">allocates $50 billion</a> for the domestic semiconductor industry, and the Infrastructure Investment and Jobs Act (IIJA), which sets aside <a href="https://www.forbes.com/sites/jonathanponciano/2021/11/15/everything-in-the-12-trillion-infrastructure-bill-biden-just-signed-new-roads-electric-school-buses-and-more/">$1.2 trillion for transportation and infrastructure</a>, are creating new avenues for the industry players.
The manufacturing sector is notably making a transformative shift from machine-based assembly lines to "smart factories," using AI, the Internet of Things (IoT), robotics, data analytics, and other advanced technologies. The movement, known as Industry 4.0, is the <a href="https://www.deloitte.com/lt/en/issues/work/restarting-and-reimagining-the-future-of-manufacturing.html">next stage of the digitalization of manufacturing</a>, fueled by advances in automation and connectivity.
Investor's interest in industrial stocks is evident from the Industrial Select Sector SPDR Fund's (<a href="https://stocknews.com/stock/XLI/">XLI</a>) 10.4% returns over the past six months.
Given the industry's solid growth prospects, investing in fundamentally strong industrial stocks SIEGY, ATR, and AMDLY could be wise for future gains.
Let's discuss the fundamentals of these stocks in detail:
Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>)
Headquartered in Munich, Germany, SIEGY is a leading technology company that emphasizes automation and digitalization worldwide. The company operates through Digital Industries; Smart Infrastructure; Mobility; Siemens Healthineers; and Siemens Financial Services (SFS) segments.
On February 15, 2024, SIEGY supplied 200 VersiCharge wallboxes and an intelligent charging management system to the Portuguese Infinity building, one of the tallest residential sites in Lisbon, Portugal. The contract includes delivery of SICAM Dynamic Load Management, a solution by SIEGY to use grid capacity efficiently.
With this deal, SIEGY is preparing one of Portugal's tallest buildings for the future of eMobility. The integrated EV (Electric Vehicle) charging solution customized by SIEGY's engineering and software teams in Portugal allows for dynamic and intelligent on-site charging management.
On February 6, SIEGY and Italian distribution system operator (DSO), Areti announced their collaboration on the RomeFlex project to test the ability to manage congestion and voltage volatility across the stressed power grids of Italy's capital city. Areti will use SIEGY's technology to forecast grid congestion and request flexibility on MV and LV grids.
With SIEGY's expertise and software, Areti is managing challenges related to climate change and ‘the electrification of everything,' heavily impacting power grids in Italy and all around the world.
Also, on February 5, SIEGY announced the release of a new generative artificial intelligence (AI) functionality into its predictive maintenance solution – Senseye Predictive Maintenance. The new generative AI functionality makes predictive maintenance more conversational and intuitive.
With the new release, SIEGY will make human-machine interactions and predictive maintenance more efficient and faster by enhancing proven machine learning capabilities with generative AI.
For the fiscal 2024 first quarter that ended December 31, 2023, SIEGY's revenue grew 1.9% year-over-year to €18.41 billion ($19.84 billion). The company's gross profit rose 3.1% year-over-year to €7.18 billion ($7.74 billion). Its income from continuing operations came in at €2.53 billion ($2.73 billion), up 54.2% from the prior year's quarter.
In addition, SIEGY's <a href="https://www.investopedia.com/terms/n/netincome.asp#:~:text=Net%20income%20(NI)%20is%20calculated,or%20revenues%20can%20be%20inflated.">net income</a> for the quarter amounted to €2.55 billion ($2.74 billion), or €2.99 per share, a 55.7% and 61.6% growth from the previous year's quarter, respectively. Its free cash flow from continued and discontinued operations was €1.05 billion ($1.13 billion), an increase of 1,118.6% year-over-year.
Street expects SIEGY's revenue for the third quarter (ending June 2024) to increase 3.9% year-over-year to $21.55 billion. The company's EPS for the same quarter is expected to grow 38.5% year-over-year to $1.26. Moreover, the company topped the consensus EPS estimates in three of the trailing four quarters, which is impressive.
Shares of SIEGY have surged 21.6% over the past six months and 15.5% over the past year to close the last trading session at $90.71.
SIEGY's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
SIEGY has a B grade for Value, Growth, and Stability. It is ranked #3 out of 35 stocks in the B-rated <a href="https://stocknews.com/category/industrial-manufacturing/">Industrial - Manufacturing</a> industry.
In addition to the POWR Ratings we've stated above, we also have SIEGY ratings for Momentum, Sentiment, and Quality. Get all SIEGY ratings <a href="https://stocknews.com/stock/SIEGY/">here</a>.
AptarGroup, Inc. (<a href="https://stocknews.com/stock/ATR/">ATR</a>)
ATR designs and manufactures a variety of drug delivery, consumer product dispensing, and active material science solutions and services for markets, including pharmaceutical, beauty, personal care, home care, and food and beverage. It operates through Aptar Pharma; Aptar Beauty; and Aptar Closures segments.
On February 9, 2024, ATR's Aptar Digital Health and Biogen Inc. (<a href="https://stocknews.com/stock/BIIB/">BIIB</a>) entered into an enterprise agreement to operate and develop digital health solutions for neurological and rare diseases. Under the agreement, Biogen will transfer ownership of select digital health solutions to Aptar Digital Health.
The new partnership model leverages Aptar Digital Health's capabilities to assist in the development and operation of new and existing digital health solutions globally. The initial scope of the multi-year agreement covers various indications in neurology and immunology across 15 countries.
On January 19, ATR declared a quarterly cash dividend of $0.41 per share. The payment date for the dividend is February 22, 2024, to stockholders of record as of February 1, 2024.
ATR pays an annual dividend of $1.64, which translates to a yield of 1.19% at the current share price. Its four-year average dividend yield is 1.27%. Moreover, the company's dividend payouts have increased at a CAGR of 3.8% over the past three years. Aptar has raised its dividends for 30 consecutive years.
During the fourth quarter that ended December 31, 2023, ATR's net sales increased 5.3% year-over-year to $838.48 million. Adjusted net income attributable to ATR rose  28.6% and 27.4% from the prior year's quarter to $81.45 million and $1.21 per share, respectively. Its adjusted EBITDA was $179.45 million, up 22.3% year-over-year.
In addition, the company's free cash flow came in at $138.49 million, an increase of 40.3% from the previous year's period.
Analysts expect ATR's revenue and EPS for the first quarter (ending March 2024) to increase 3.9% and 20.8% year-over-year to $893.45 million and $1.15, respectively. Furthermore, the company has surpassed the consensus EPS estimates in each of the trailing four quarters.
ATR's stock has gained 13.1% over the past six months and 24.2% over the past year to close the last trading session at $137.50.
ATR's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has a B grade for Growth, Quality, Stability, and Sentiment. ATR is ranked #4 among 19 stocks in the B-rated <a href="https://stocknews.com/category/industrial-packaging/">Industrial – Packaging</a> industry.
<a href="https://stocknews.com/stock/ATR/">Click here</a> to access all ATR's ratings.
Amada Co. Ltd. (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>)
Based in Isehara, Japan, AMDLY manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment in Japan, North America, Europe, Asia, and internationally. The company offers sheet metal fabrication machines, including laser machines and punch &amp; laser combination machines.
On October 4, 2023, AMDLY announced the three-dimensional laser integrated system, "ALCIS-1008e," at Photonix 2023. The ALCIS (Advanced Laser Cube Integrated System) is a three-dimensional laser integrated system that can perform various types of laser machining like cutting, welding, and layered manufacturing, all in one machine.
With the new system, AMDLY can support the high-speed and high-quality processing of highly reflective materials such as copper, for which demand is increasing. The system provides high-precision laser machining to meet the needs of highly variable manufacturing.
On September 5, AMDLY commenced the sales of its new products in the HRB series of next-generation large press brakes. These machines expand the range of possible processing by enabling the bending and deep bending of thick sheet metal and large items.
The new HRB series products expand the large-scale machine range to seven models, with support for long and med-to-thick material from 350 tons/3 meters to 600 tons/7 meters. It enables support for steel material processing and also considers environmental concerns.
In the nine months that ended December 31, 2023, AMDLY's sales revenue increased 10.2% year-over-year to ¥285.22 billion ($1.90 billion), while its gross profit rose 10.9% from the prior year's period to ¥125.90 billion ($838.18 million). Its operating profit came in at ¥40.25 billion ($268 million), up 15% year-over-year.
Furthermore, the company's net income and earnings per share amounted to ¥28.01 billion ($186.48 million) and ¥81.51, indicating increases of 16.5% and 17.9% year-over-year, respectively.
As per the company's updated guidance for the fiscal year 2023, AMDLY's sales revenue is expected to be ¥395 billion ($2.63 billion).         The company expects gross profit of ¥175 billion ($1.16 billion) and net income of ¥39 billion ($259.64 million).
Street expects AMDLY's revenue for the fiscal year (ending March 2024) to increase 96.7% year-over-year to $2.66 billion. In addition, the company has surpassed the consensus revenue estimates in three of the trailing four quarters.
Over the past six months, the stock has gained 17.8% to close the last trading session at $40.51.
AMDLY's POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Value and a B for Quality and Stability. Within the A-rated Industrial - Machinery industry, AMDLY has topped the list of 80 stocks.
<a href="https://stocknews.com/stock/AMDLY/">Click here</a> to access additional ratings of AMDLY for Growth, Momentum, and Sentiment.
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SIEGY shares were unchanged in premarket trading Monday. Year-to-date, SIEGY has declined -1.02%, versus a 5.09% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/siegy-atr-amdly-biib-3-industrial-stocks-with-future-gains-for-investors/>3 Industrial Stocks With Future Gains for Investors</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Industrial Stocks With Future Gains for Investors

The industrial sector has demonstrated exceptional resilience over the years and is poised to remain buoyed due to consumer demand for industrial products and services, increased government support, and technological advances. Given this backdrop, quality industrial stocks Holcim AG (HCMLY), Amada Co. (AMDLY), Quanex Building Products (NX), and Interface, Inc. (TILE) could be wise portfolio additions now, as they are well-positioned to continue their momentum. Read on… The industrial sector, vital to the economy, is poised for continual expansion due to technological advancements and enhanced government backing. Given this backdrop, fundamentally strong industrial stocks Holcim AG (<a href="https://stocknews.com/stock/HCMLY/">HCMLY</a>), Amada Co., Ltd. (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>), Quanex Building Products Corporation (<a href="https://stocknews.com/stock/NX/">NX</a>), and Interface, Inc. (<a href="https://stocknews.com/stock/TILE/">TILE</a>) could be solid buys now. Moreover, these stocks have been exhibiting strong momentum lately and are expected to maintain it in the near term.
The industrial sector, crucial for economic vitality, often reflects overall economic health. Positioned for significant growth, it is poised to benefit from global economic resurgence and rapid industrialization.
<a href="https://www.reuters.com/markets/us/us-construction-spending-rises-more-than-expected-december-2024-02-01/">U.S. construction spending</a> in December 2023 surpassed expectations amid a single-family homebuilding surge. The total U.S. <a href="https://www.census.gov/construction/c30/pdf/release.pdf">construction spending</a> in January 2024 is estimated at $2.10 trillion, which is 1.5% above the January 2023 estimate of $1.88 trillion. The U.S. construction market is expected to grow at an <a href="https://www.globaldata.com/store/report/usa-construction-market-analysis/">AAGR of over 4%</a> through 2028.
Moreover, the manufacturing sector remains resilient and poised for significant growth in the future. Industrial production, which includes aircraft, automobiles, chemicals, electronics, machinery, oil, and steel, surpasses pre-pandemic levels. The industrial machinery industry is primed for substantial profitability as the manufacturing sector expands. Forecasts predict the <a href="https://www.gminsights.com/industry-analysis/industrial-machinery-market">industrial machinery market</a> could exceed $1 trillion by 2032, growing at a 6% CAGR.
<a href="https://www.fidelity.com/learning-center/trading-investing/outlook-industrials">Federal funding</a> and other incentives are ready to benefit the industry's infrastructure, onshoring/reshoring, and the electrification of everything, through Inflation Reduction Act and Infrastructure Investment and Jobs Act. This massive funding could bolster the industrial sector significantly, along with focusing on its long-term growth prospects.
Furthermore, advancements in AI, machine learning, and data analytics boost industrial productivity and efficiency. Integrating AI-driven decisions in areas like inventory management, production line assessment, supply chain coordination, and quality control is gaining traction.
In light of these encouraging trends, let's look at the fundamentals of the four industrial sector stocks.
Holcim AG (<a href="https://stocknews.com/stock/HCMLY/">HCMLY</a>)
Headquartered in Zug, Switzerland, HCMLY operates as a building materials and solutions company worldwide. The company's business segments include Cement; Aggregates; Ready-Mix Concrete; and Solutions &amp; Products. 
On March 18, HCMLY launched its previously announced share buyback program for CHF1 billion ($1.11 billion) until year-end 2024, with the share cancellation to be approved at the Annual General Meeting in 2025. The share buyback will be funded from available cash on the balance sheet. HCMLY remains committed to a strong investment grade credit rating. 
On February 7, HCMLY acquired ZinCo, a leader in advanced green roofing systems based in Germany, with global operations across Europe, Asia, and America. With its integrated green and solar roofing systems, Zinco is expanding HCMLY's specification selling approach.
With this acquisition, HCMLY advanced its goal of expanding its Solutions &amp; Products business to 30% of group net sales by 2025, entering the most attractive construction segments, from roofing systems to insulation and renovation.
Its annualized dividend is $0.51 per share, which translates to a dividend yield of 2.82% on the current share price. Its four-year average yield is 3.95%. Over the past three and five years, HCMLY's dividend payments have grown at CAGRs of 11.7% and 4.9%, respectively.
HCMLY's trailing-12-month cash from operations of $6.50 billion is significantly higher than the industry average of $433.96 million. Its trailing-12-month net income and levered FCF margins of 11.33% and 12.30% are 126% and 137.9% higher than the industry averages of 5.01% and 5.17%, respectively.
For the fiscal fourth quarter that ended December 31, 2023, HCMLY's <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> and recurring EBIT stood at CHF6.60 billion ($7.32 billion) and CHF1.12 billion ($1.24 billion), up 2.1% and 8.7% year-over-year, respectively.
For the fiscal year that ended December 31, 2023, its net income stood at CHF3.18 billion ($3.52 billion), while EPS before impairment and divestments increased 48.1% from year-ago value to CHF5.42.
Street expects HCMLY's revenue for the fiscal year ending December 2024 to increase marginally year-over-year to $30.75 billion, while EPS is expected to increase 10.9% year-over-year to $1.37.
The stock has gained 46.3% over the past year to close the last trading session at $17.88. Over the past six months, it has gained 40%. The stock is trading above its 50-day and 200-day moving averages of $15.99 and $14.2, respectively, indicating an uptrend.
HCMLY's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has an A grade for Momentum and Stability and a B for Growth, Value, and Quality. Within the A-rated <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> industry, it is ranked first out of 46 stocks.
Beyond what we've stated above, we have also rated the stock for Sentiment. Get all ratings of HCMLY <a href="https://stocknews.com/stock/HCMLY/">here</a>.
Amada Co., Ltd. (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>)
Headquartered in Isehara, Japan, AMDLY develops, manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment. The company operates in two segments: Metal Processing Equipment; and Metal Machine Tool.
Its annualized dividend is $1.36 per share, which translates to a dividend yield of 2.78% on the current share price. Its four-year average yield is 3.73%.
AMDLY's trailing-12-month CAPEX/Sales of 3.95% is 30.7% higher than the industry average of 3.02%. Its trailing-12-month gross profit and net income margins of 43.82% and 9.73% are 43.5% and 63.1% higher than the industry averages of 30.53% and 5.96%, respectively. 
For the nine months that ended December 31, 2023, AMDLY's revenue and gross profit increased 10.2% and 10.9% year-over-year to ¥285.22 billion ($1.88 billion) and ¥125.94 billion ($831.69 million), respectively.
For the same period, its profit attributable to owners of parent and basic earnings per share stood at ¥28.01 billion ($184.99 million) and ¥81.51, up 16.5% and 17.9% from the prior-year period, respectively.
Street expects AMDLY's revenue for the fiscal year ending March 2024 to increase 100.5% year-over-year to $2.71 billion. The company surpassed consensus revenue estimates in three of the trailing four quarters, which is impressive.
The stock has gained 42.4% over the past year to close the last trading session at $48.97. Over the past six months, it has gained 23.2%. The stock is trading above its 50-day and 200-day moving averages of $41.06 and $36.45, respectively, indicating an uptrend.
AMDLY's POWR Ratings reflect its positive prospects. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
AMDLY has a B grade for Value, Momentum, Stability, and Quality. Within the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry, it is ranked first out of 82 stocks.
To see additional POWR Ratings for Growth and Sentiment for AMDLY, <a href="https://stocknews.com/stock/AMDLY/">click here</a>.
Quanex Building Products Corporation (<a href="https://stocknews.com/stock/NX/">NX</a>)
NX provides components for the fenestration industry in the U.S., rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration; European Fenestration; and North American Cabinet Components. 
On February 28, NX's Board of Directors declared a quarterly cash dividend of $0.08 per share on the company's common stock, which is payable to shareholders on March 29.
Its annualized dividend is $0.32 per share, which translates to a dividend yield of 0.85% on the current share price. Its four-year average yield is 1.48%. Over the past five years, NX's dividend payments have grown at a 2.7% CAGR.
NX's trailing-12-month asset turnover ratio of 1.35x is 70.4% higher than the industry average of 0.79x. Its trailing-12-month net income and levered FCF margins of 7.84% and 7.25% are 31.4% and 10.1% higher than the industry averages of 5.96% and 6.58%, respectively.
For the fiscal first quarter that ended January 31, 2024, NX's net sales stood at $239.16 million, while operating income increased 79.8% year-over-year to $7.92 million. Moreover, its adjusted EBITDA stood at $19.27 million.
For the same quarter, its adjusted net income and adjusted EPS stood at $5.81 million and $0.18, respectively.
Street expects NX's revenue and EPS for the fiscal second quarter ending April 2024 to be $268.38 million and $0.56, respectively. The company surpassed consensus revenue and EPS estimates in each of the trailing four quarters.
The stock has gained 86.8% over the past year to close the last trading session at $37.95. Over the past nine months, it has gained 49.6%. The stock is trading above its 100-day and 200-day moving averages of $32.13 and $29.66, respectively, indicating an uptrend.
NX's POWR Ratings reflect this promising outlook. It has an overall rating of A, which indicates a Strong Buy in our proprietary rating system.
NX has an A grade for Momentum and a B for Value, Stability, and Sentiment. Within the Industrial - Building Materials industry, it is ranked #3.
For NX's other ratings (Growth and Quality), <a href="https://stocknews.com/stock/NX/">click here</a>.
Interface, Inc. (<a href="https://stocknews.com/stock/TILE/">TILE</a>)
TILE designs, produces, and sells modular carpet products primarily worldwide. The company operates in two segments: Americas (AMS); and Europe, Africa, Asia and Australia (EAAA). 
On March 12, TILE's Board of Directors declared a regular quarterly cash dividend of $0.01 per share, payable to shareholders on April 12. Its annualized dividend is $0.04 per share, which translates to a dividend yield of 0.23% on the current share price. Its four-year average yield is 0.73%.
On February 15, TILE's FLOR collaborated with Trina Turk, the ready-to-wear fashion designer known for bright colors and bold patterns. The Trina Turk X FLOR area rug collection includes five unique products that bring the designer's signature style into interior spaces, influenced by her global travels and love for vintage materials. The collaboration should bode well for TILE.
TILE's trailing-12-month asset turnover ratio of 1.01x is 27.5% higher than the industry average of 0.79x. Its trailing-12-month gross profit and levered FCF margins of 34.96% and 9.08% are 14.5% and 37.8% higher than the industry averages of 30.53% and 6.58%, respectively.
For the fiscal fourth quarter that ended December 31, 2023, TILE's net sales stood at $325.12 million, while adjusted gross profit increased 11.7% year-over-year to $124.40 million. Moreover, its adjusted earnings before interest, taxes, depreciation and amortization stood at $52.20 million, up 26.4% from the year-ago quarter.
For the same quarter, its adjusted net income and adjusted EPS increased 31.5% and 32.3% from the prior-year quarter to $23.80 million and $0.41, respectively.
Street expects TILE's EPS for the fiscal first quarter ending March 2024 to increase 66.7% year-over-year to $0.12. Its revenue is expected to be $284.68 million for the same quarter. The company surpassed consensus EPS estimates in three of the trailing four quarters.
The stock has gained 119.1% over the past year to close the last trading session at $17.12. Over the past nine months, it has gained 105.7%. The stock is trading above its 50-day and 100-day moving averages of $14.02 and $12.51, respectively, indicating an uptrend.
TILE's robust prospects are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
TILE has a B grade for Growth, Momentum, Sentiment, and Quality. It is ranked first out of 5 stocks within the A-rated <a href="https://stocknews.com/category/industrial-textiles/">Industrial - Textiles</a> industry.
<a href="https://stocknews.com/stock/TILE/">Click here</a> for the additional POWR Ratings for TILE (Value and Stability).
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HCMLY shares were unchanged in premarket trading Wednesday. Year-to-date, HCMLY has gained 14.32%, versus a 10.00% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Neha Panjwani</h2> <img src='https:/wp-content/uploads/2024/01/Neha-Panjwani_Headshot-1.jpeg' style="float:left; padding:5px;width:125px;">From her school days, Neha harbored a profound fascination for finance, a passion that steered her toward a career as an investment analyst following the completion of her bachelor's degree in commerce. Currently enrolled in the CFA program, Neha is dedicated to further enriching her comprehension of investment fundamentals.

Neha's primary objective is to aid retail investors in discerning optimal investment opportunities by diligently evaluating crucial aspects of financial instruments, with a primary focus on stocks and ETFs. Her commitment lies in empowering individuals to make informed and strategic investment decisions in the dynamic world of finance.<a href="https://stocknews.com/authors/?author=neha-panjwani">More...</a>The post <a href=https://stocknews.com/news/hcmly-amdly-nx-tile-4-industrial-stocks-building-momentum-for-investors/>4 Industrial Stocks Building Momentum for Investors</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

4 Industrial Stocks Building Momentum for Investors

The multi-industrial company Illinois Tool Works (ITW) reported strong financial results in the quarter that was recently reported. With its diverse portfolio, solid financial results, and promising industry trends, the company is poised for continued growth. So, should you buy this stock for long-term gains? Read more to find out... Illinois Tool Works Inc. (<a href="https://stocknews.com/stock/ITW/">ITW</a>), a global multi-industrial company engaged in the manufacturing and selling of industrial products and equipment, reported impressive fiscal 2024 third-quarter results. The company's EPS of $3.91 surpassed the consensus estimate of $2.52.
Further, the company reported record revenue from Automotive OEM and Test &amp; Measurement and Electronics segments totaling $772 million and $697 million for the third quarter, respectively.
ITW continued to demonstrate its commitment to returning value to shareholders. The company's Board of Directors declared a dividend of $1.50 per share of its stock for the fourth quarter of 2024, payable on January 10, 2025, to shareholders of record as of December 31, 2024.
ITW delivers differentiated performance and has established itself as one of the best-performing, highest-quality, and most respected industrial companies. With the increasing adoption of automation and smart technologies and rapid industrialization accelerating industrial machinery operations across the globe, Illinois Tool's future prospects are robust.
The global industrial machinery market is anticipated to register a <a href="https://www.gminsights.com/industry-analysis/industrial-machinery-market">CAGR of 7.5%</a>, resulting in a market volume of $1.20 trillion by 2032, driven by trends like investments in Industry 4.0 and IoT technologies transforming the scope and scale of the industrial landscape.
ITW's shares have increased 14% in price in the past six months and 12.5% over the past year to close the last trading session at $275.27.
Let's look at factors that could influence ITW's performance in the upcoming months.
Robust Financials
During the third quarter that ended September 30, 2024, ITW reported operating revenue of $3.97 billion, and its operating income was $1.05 billion for the same period. The company's income before taxes rose 34.4% from the year-ago value to $1.36 billion.
In addition, the company's net income amounted to $1.16 billion or $3.91 per share, reflecting growth of 50.3% and 53.3% from the prior year's quarter, respectively. Also, ITW's cash and equivalents and total assets came in at $947 million and $15.82 billion as of September 30, 2024.
The company raised its full-year EPS guidance by $1.33 to a range of $11.63 to $11.73 per share from the previous range of $10.30 to $10.40.
Impressive Historical Growth
ITW's revenue grew at a CAGR of 3.8% over the past three years, while its <a href="https://www.investopedia.com/terms/e/ebitda.asp">EBITDA</a> improved at a CAGR of 5.5%. Its EBIT increased at a CAGR of 6.2% over the same period, while the company's net income and EPS grew at respective CAGRs of 8.2% and 10.3% over the same time frame.
Also, the company's normalized net income and levered free cash flow increased at CAGRs of 6.1% and 13.1% over the same timeframe, respectively.
Favorable Analyst Estimates
Analysts expect ITW's revenue for the fourth quarter (ending December 2024) to come in at $4 billion, indicating a marginal increase year-over-year, and the consensus EPS estimate of $2.51 for the same period represents a 3.9% improvement year-over-year. Moreover, the company has surpassed the consensus EPS estimates in all of the trailing four quarters.
For the fiscal year (ending December 2024), the company's EPS is anticipated to grow 5.4% year-over-year to $10.23, while its revenue is expected to be $15.99 billion for the same year. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 2.9% and 5.2% from the prior year to $16.46 billion and $10.76, respectively.
High Profitability
ITW's trailing-12-month gross profit margin of 43.89% is 38.6% higher than the 31.67% industry average. Its trailing-12-month EBIT margin and net income margin of 26.67% and 21.66% are significantly higher than the industry averages of 10.39% and 6.49%, respectively. Likewise, the stock's trailing-12-month levered FCF margin of 16.05% is 138% higher than the industry average of 6.74%.
Furthermore, the stock's trailing-12-month ROCE, ROTC, and ROTA of 108.07%, 23.31%, and 21.83% are favorable, compared to the 13.26%, 7.20%, and 5.33% industry averages, respectively.
POWR Ratings Reflect Promise
ITW's robust fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. ITW has an A grade for Quality, consistent with its higher-than-industry profitability. It has a B grade for Sentiment, justified by its positive analysts' expectations.
Also, with a 24-month beta of 0.88, the stock has earned a grade of B for Stability.
ITW is ranked #19 among the 79 stocks in the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry.
Beyond what I have stated above, we have also given ITW grades for Growth, Momentum, and Value. Get access to all the ITW ratings <a href="https://stocknews.com/stock/ITW/">here</a>.
Bottom Line
ITW is a leading industrial company operating through its seven segments, catering to a wide variety of requirements. The company's operational diversity allows it to generate multiple revenues and maintain a solid operational margin. In its last reported quarter also, the company maintained an operating margin of 26.5%.
Further, with sound financial performance, stable cash flow, and robust profitability, ITW's growth appears promising.
Therefore, given these favorable trends and robust growth outlook, it could be wise to invest in this stock.
How Does Illinois Tool Works Inc. (ITW) Stack Up Against Its Peers?
While ITW has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry with A (Strong Buy) or B (Buy) ratings: Smiths Group PLC (<a href="https://stocknews.com/stock/SMGZY/">SMGZY</a>), TechnoPro Holdings Inc. ADR (<a href="https://stocknews.com/stock/TCCPY/">TCCPY</a>), and Amada Co. Ltd. ADR (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>).
For exploring more A and B-rated industrial - machinery stocks, <a href="https://stocknews.com/category/industrial-machinery/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
ITW shares were trading at $275.34 per share on Friday afternoon, up $0.07 (+0.03%). Year-to-date, ITW has gained 6.91%, versus a 28.99% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/itw-smgzy-tccpy-amdly-is-illinois-tool-works-a-reliable-pick-for-long-term-gains/>Is Illinois Tool Works a Reliable Pick for Long-Term Gains?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Illinois Tool Works a Reliable Pick for Long-Term Gains?

The Gorman-Rupp (GRC) reported impressive financial results for the third quarter of 2024. The company increased its dividends during the quarter and maintained consistent sales growth, representing solid financial standing. So, let's analyze whether GRC is positioned for robust growth amid the ongoing water management needs. Read more to find out... The Gorman-Rupp Company (<a href="https://stocknews.com/stock/GRC/">GRC</a>) designs, manufactures, and sells pumps and related equipment for their use in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilation, and air conditioning, military and other liquid-handling applications.
Through its diverse product range and presence across wide markets in the world, The Gorman-Rupp is widening its operations in the water management systems market, which is expected to experience significant growth in the future. The market is anticipated to exhibit a notable <a href="https://www.thebusinessresearchcompany.com/report/water-management-systems-global-market-report#:~:text=Water%20Management%20Systems%20Market%20Size,(CAGR)%20of%2013.2%25.">CAGR of 13.4%</a>, resulting in a market volume of $25.19 billion by 2028.
Factors including growing urbanization, increasing investments in water recycling and preservation, adoption of IoT solutions for improved efficiency, and adoption of smart water management technologies are driving the market demand. Amid these rising needs for water management solutions, GRC is well-poised to grow strongly in the coming years.
During the third quarter and nine months of 2024, the company reported impressive sales growth in the municipal market fueled primarily by domestic flood control and wastewater projects related to increased infrastructure investment, coupled with growth in computer cooling and the petroleum market driven by increased international refueling applications.
Further, demonstrating its commitment to returning value to shareholders, GRC's Board of Directors declared a quarterly cash dividend of $0.185 per share. The dividend was paid on December 10, 2024, to holders of record on November 15, 2024. The cash dividend represented a 2.8% increase from the previous quarter and the 52nd consecutive year of increased dividends to its shareholders.
Shares of GRC have surged 12.4% over the past six months and 19.9% over the past year to close its last trading session at $41.15.
Let's look at factors that could influence GRC's performance in the upcoming months.
Robust Financials
GRC's net sales increased marginally year-over-year to $168.18 million during the third quarter that ended September 30, 2024. Its <a href="https://www.investopedia.com/terms/g/grossprofit.asp#:~:text=Gross%20profit%20is%20the%20income,have%20been%20removed%20from%20revenue.">gross profit</a> grew 9.4% from the year-ago value to $52.66 million. The company's operating income of $23.88 million indicates an improvement of 9.2% from the prior year's quarter.
In addition, the company's non-GAAP adjusted earnings amounted to $12.92 million or $0.49 per share, reflecting growth of 43.9% and 44.1% from the previous year's quarter, respectively. Its adjusted EBITDA increased 5.1% from the year-ago value to $30.03 million.
Also, the company's cash and cash equivalents totaled $39.70 million as of September 30, 2024, compared to $30.52 million as of December 31, 2023.
Solid Historical Growth
GRC's revenue and EBITDA have grown at respective CAGRs of 21.5% and 31.8% over the past three years. The company's EBIT has increased 31.3% over the same timeframe, while its net income and EPA have improved at CAGRs of 8.2% and 8%, respectively.
Furthermore, the company's total assets and levered free cash flow have increased at respective CAGRs of 27.9% and 19.4% over the past three years.
Favorable Analyst Estimates
Analysts expect GRC's revenue for the fourth quarter (ending December 2024) to increase 1.4% year-over-year to $162.84 million. The consensus EPS estimate of $0.45 for the ongoing quarter reflects a 32.4% year-over-year improvement. For the fiscal year ending December 2024, its revenue and EPS are expected to grow marginally and 29.9% year-over-year to $659.80 million and $1.78, respectively.
Additionally, Street expects the company's revenue and EPS for the fiscal year 2025 to increase 3.6% and 11.2% year-over-year to $683.56 million and $1.98, respectively.
High Profitability
GRC's trailing-12-month EBIT margin and levered FCF margin of 13.55% and 10.45% are 32.1% and 56.7% higher than the respective industry averages of 10.26% and 6.67%, respectively. Its trailing-12-month ROTC of 7.39% is considerably higher than the industry average of 7.08%.
POWR Ratings Reflect Promise
GRC's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. GRC has an A grade for Sentiment, which is consistent with its optimistic analyst estimates. It has a B grade for Value, which is in sync with the lower valuation.
In addition, with a five-year beta of 0.92, the stock has earned a grade of B for Stability.
GRC is ranked #6 in the 79-stock A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry.
Beyond what I have stated above, we have also given GRC grades for Growth, Momentum, and Quality. <a href="https://stocknews.com/stock/GRC/">Click here</a> to access all the GRC ratings.
Bottom Line
GRC is a leading pump and pump systems manufacturer and seller. The company delivered strong financial results in the last reported quarter, showcasing impressive sales growth due to growing flood control and wastewater projects and improved gross margin. Further, the current environmental concerns have impacted the awareness and consciousness among people, resulting in demand for water management solutions.
Given the company's solid financial performance, accelerating profitability, and lower valuation, investors could consider investing in this stock.
How Does The Gorman-Rupp Company (GRC) Stack Up Against Its Peers?
While GRC has an overall POWR Rating of A, investors could also check out these other stocks within the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry with A (Strong Buy) or B (Buy) ratings: Amada Co. Ltd. ADR (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>), TechnoPro Holdings Inc. ADR (<a href="https://stocknews.com/stock/TCCPY/">TCCPY</a>), and Smiths Group PLC (<a href="https://stocknews.com/stock/SMGZY/">SMGZY</a>).
For exploring more A and B-rated industrial stocks, <a href="https://stocknews.com/category/industrial-machinery/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
GRC shares . Year-to-date, GRC has gained 12.23%, versus a 24.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/grc-amdly-tccpy-smgzy-is-gorman-rupps-focus-on-water-infrastructure-a-long-term-investment-opportunity/>Is Gorman-Rupp's Focus on Water Infrastructure a Long-Term Investment Opportunity?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Gorman-Rupp's Focus on Water Infrastructure a Long-Term Investment Opportunity?

The aviation industry is poised for stable growth, fueled by countries opening trade and travel routes. In this recovering landscape, is Howmet Aerospace (HWM), with its leading industry position, a must-have stock for investors looking to capitalize on the future of aviation? Read on… The aviation industry has exhibited robust growth in recent years after suffering from major losses during the Covid-19 pandemic. As more and more countries have opened up their airspace for travel, the industry has rebounded back to its regular state while maintaining a steady growth of profit.
The aviation sector in the United States is one of the country's biggest contributors to its GDP, driving nearly <a href="https://www.airlines.org/impact/">5% of the U.S. GDP</a>. The industry also employs more than 1 million employees around the globe and carries around<a href="https://www.airlines.org/dataset/state-of-us-aviation/"> 2.7 million passengers</a> every day around the world.
Although the effect of the pandemic was highly detrimental to the industry and thwarted economic growth, it has grown back to its roots and has succeeded in maintaining a steady stream of profits since. The U.S. airlines reported a net profit of <a href="https://www.bts.gov/newsroom/us-airlines-gained-21-billion-third-quarter-2024-increase-over-third-quarter-2023">$2.10 billion</a> for the third quarter of 2024, an increase of $400 million from the previous year's value.
Looking forward, the U.S. aviation industry market size is forecasted to reach $105 billion by 2030, growing at a <a href="https://www.mordorintelligence.com/industry-reports/us-aviation-market">CAGR of 4.5%</a>. The prospects of the industry and its ability to stand in the face of disasters and still drive profits are highlighted by this growth.
Amid this backdrop, Howmet Aerospace Inc. (<a href="https://stocknews.com/stock/HWM/">HWM</a>) stands as a forerunner in driving the industry's growth forward. The company supplies advanced engineered solutions like airfoils, seamless rolled rings, titanium ingots, forged aluminum wheels, etc., which are crucial components of the aviation industry.
The company's efforts resonate not only in its offerings but also in its stock performance. HWM's stock climbed 42.5% over the past six months and delivered an impressive gain of 109.2% over the past year, closing the last trading session at $112.04.
Now, let us delve deeper into the factors that could shape HWM's performance in the near future.
Sound Historical Growth
Over the past three years, HWM has demonstrated consistent growth across key financial metrics. Its revenue grew at a CAGR of 13.9%, while EBITDA rose at a 15.4% CAGR. Moreover, operational income (EBIT) expanded at a CAGR of 19.3%. In addition, net income surged at a CAGR of 55.4%, and EPS climbed even higher at 57.9%.
Strong Financials
For the fiscal 2024 third quarter that ended September 30, HWM's sales increased 10.7% year-over-year to $1.84 billion. Its operating income rose 37.1% from the year-ago value to $421 million. The company's <a href="https://www.investopedia.com/terms/a/adjusted-ebitda.asp">adjusted EBITDA</a> grew 28.8% from the prior year's quarter to $488 million.
Additionally, net income and EPS excluding special items increased 51% and 54.3% year-over-year to $290 million and $0.71, respectively. As of September 30, 2024, HWM's total assets amounted to $10.56 billion, compared to $10.43 billion on December 31, 2023.
Favorable Analyst Estimates
Analysts predict HWM's revenue and EPS for the fiscal fourth quarter ending December 2024 to increase 8.6% and 35.6% year-over-year to $1.88 billion and $0.72, respectively. Also, the company exceeded the consensus EPS estimates in each of the four trailing quarters, which is noteworthy.
For the full fiscal year ending December 2024, HWM's revenue and EPS are expected to rise 11.7% and 45% from the previous year, reaching $7.42 billion and $2.67, respectively.
Furthermore, looking ahead to fiscal 2025, analysts anticipate further growth, with revenue and EPS forecasted to rise by 8.3% and 19.5% from the prior year, reaching $8.03 billion and $3.19, respectively.
High Profitability
HWM's trailing-12-month EBITDA margin stands at 24.37%, 75.1% higher than the industry average of 13.92%. In addition, the company boasts a trailing-12-month net income margin of 14.81%, which is 126.2% higher than the sector average of 6.55%.
Also, the stock's trailing-12-month levered FCF margin of 9.71% outperforms the industry average of 6.75% by 44%. Moreover, HWM's trailing-12-month cash from operations of $1.28 billion is 278% higher than the industry average of $337.59 million.
POWR Ratings Reflects Optimism
HWM's stable fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
HWM has a B grade for Quality, supported by profitability measures that exceed industry benchmarks. Its B grade for Momentum further underscores strong technical performance, with the stock trading above its 50-day moving average of $110.84 and 200-day moving average of $89.93.
Additionally, the stock has a B grade for Sentiment, in line with the optimistic analyst estimates. Within the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry, HWM is ranked #22 out of 79 stocks.
Beyond what is stated above, we have also given HWM grades for Stability, Growth, and Value. Get all HWM ratings <a href="https://stocknews.com/stock/HWM/">here</a>.
Bottom Line
HWM has established itself as a major player in the aviation landscape through its essential parts offerings that are crucial for aircraft. As the aviation industry grows further, the company's prospects can only keep getting better from here.
Considering HWM's high profitability, strong financials, optimistic analyst estimates, and stable momentum, now might be the ideal time to consider adding HWM to one's investment portfolio.
How Does Howmet Aerospace Inc. (HWM) Stack Up Against Its Peers?
Although HWM's near-term outlook appears sound, it may be worthwhile to explore its industry peers, who also exhibit even stronger POWR Ratings. So, consider these A (Strong Buy) rated stocks from the Industrial - Machinery industry:
Smiths Group plc (<a href="https://stocknews.com/stock/SMGZY/">SMGZY</a>)
Amada Co., Ltd. (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>)
Taylor Devices, Inc. (<a href="https://stocknews.com/stock/TAYD/">TAYD</a>)
To explore more A or B-rated Industrial - Machinery stocks, <a href="https://stocknews.com/category/industrial-machinery/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
HWM shares were unchanged in premarket trading Thursday. Year-to-date, HWM has gained 107.65%, versus a 28.13% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/hwm-smgzy-amdly-tayd-is-howmet-aerospace-poised-to-soar-with-the-aviation-industrys/>Is Howmet Aerospace Poised to Soar with the Aviation Industry's Recovery?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Howmet Aerospace Poised to Soar with the Aviation Industry's Recovery?

Dover Corporation (DOV) delivered strong financial results for the third quarter of 2024. The company's diverse product portfolio, continued product innovation and expansion, and solid demand continue to contribute to its growth and success. So, let's analyze whether DOV is positioned for robust growth. Read more to find out… Dover Corporation (<a href="https://stocknews.com/stock/DOV/">DOV</a>) is a diversified global manufacturer and solutions provider. It delivers equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services. For the third quarter of 2024, the company reported a total consolidated revenue of $1.98 billion, of which its Clean Energy &amp; Fueling revenue grew 7.2% year-over-year to $500.69 million.
The company and its subsidiaries continue to offer a diverse range of industrial products and solutions to customers, alongside introducing innovative products that target the evolving demands of consumers.
Caldera, a part of DOV, recently unveiled the version 18 raster image processor software for large-format digital printing and cutting, which is embedded with enhanced features. Also, Malema&#x2122;, part of PSG and DOV, launched the new Malema CIFM-88 Series DuraMassFlow&#x2122; PFA Coriolis Industrial Flow Meter. Likewise, its other subsidiary, Dover Fueling Solutions, introduced the Wayne PWR&#x2122; DC fast charger.
With its ever-expanding product portfolio, Dover is delivering products for every need and is poised for continued consumer demand and growth in the future. Also, DOV's financial results show that it has maintained strong profitability and is strengthening its financial standing. The company recently paid a regular quarterly dividend of $0.515 on December 16.
Boasting on its solid financial performance, the company provided its full-year 2024 guidance. DOV expects to generate EPS from continuing operations between $10.11 and $10.21. Its adjusted EPS from continuing operations is expected to be $8.08 - $8.18, based on full-year revenue growth of 1% to 3%.
Shares of DOV have surged 3.2% over the past six months and 23.1% over the past year to close its last trading session at $190.33.
Let's look at factors that could influence DOV's performance in the upcoming months.
Positive Recent Developments
On December 19, DOV's Caldera launched Version 18 of its award-winning raster image processor software for large-format digital printing and cutting. CalderaRIP Version 18 introduced a wide range of features and enhancements in the market, designed to boost productivity, streamline workflows, and improve print quality for professional printers.
Also, on December 11, DOV's wholly owned subsidiary Markem-Imaje released its Ultraply ribbons and self-adhesive labels range. Amid the ongoing rise of e-commerce and direct-to-consumer models, the new range addresses the growing demand for high-quality, phone-scannable 2D barcodes with its innovative Print and Apply (P&amp;A) labelers.
Robust Financials
DOV's revenue increased marginally year-over-year to $1.98 billion during the third quarter that ended September 30, 2024. Its gross profit grew 3.2% from the year-ago value to $763.19 million. The company's earnings before the provision of income taxes of $386.33 million indicate a growth of 21.4% from the prior year's quarter.
In addition, the company's adjusted earnings from continuing operations amounted to $313.99 million or $2.27 per share, up 4.2% and 6.1% from the prior year's quarter, respectively. Its free cash flow increased 8.6% from the year-ago value to $315.49 million.
Solid Historical Growth
DOV's revenue and EBITDA have grown at respective CAGRs of 3.3% and 3.8% over the past three years. The company's EBIT has increased 3.4% over the same timeframe, while its net income and EPS have improved at CAGRs of 18.2% and 19.9%, respectively.
In addition, the company's normalized net income and total assets have grown at respective CAGRs of 3.8% and 6.4% over the past three years, respectively.
Favorable Analyst Estimates
Analysts expect DOV's EPS for the first quarter (ending March 2025) to increase 4.9% year-over-year to $2.05, and its revenue estimate is $1.95 billion for the same quarter. Furthermore, the company has maintained an impressive earning surprise history, having topped the consensus EPS estimate in all of the trailing four quarters.
Additionally, Street expects the company's revenue and EPS for the fiscal year 2025 to increase 5.1% and 14.9% year-over-year to $8.20 billion and $9.39, respectively.
High Profitability
DOV's trailing-12-month <a href="https://www.investopedia.com/terms/g/gross_profit_margin.asp">gross profit margin</a> and EBIT margin of 37.58% and 16.81% are 18.1% and 60.7% higher than the respective industry averages of 31.83% and 10.46%, respectively. Its trailing-12-month net income margin of 18.38% is considerably higher than the industry average of 6.58%.
Furthermore, the stock's trailing-12-month ROCE, ROTC, and ROTA of 29.11%, 10.43%, and 13.07% favorably compares to the industry averages of 13.33%, 7.06%, and 5.19%, respectively. Similarly, its trailing-12-month levered FCF margin of 10% is 48.5% higher than the industry average of 6.74%.
POWR Ratings Reflect Promise
DOV's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. DOV has a B grade for Sentiment and Quality, which is in sync with its optimistic analysts' estimates and higher-than-industry profitability.
DOV is ranked #30 in the 79-stock A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry.
Beyond what I have stated above, we have also given DOV grades for Growth, Value, Momentum, and Stability. Get access to all the DOV Ratings <a href="https://stocknews.com/stock/DOV/">here</a>.
Bottom Line
DOV is continuously strengthening its market share and position. The company recently announced multiple product additions and innovations through its subsidiaries like Caldera, Malema&#x2122;, Markem-Imaje, and Dover Fueling Solutions. Dover's financial statements also reflected its continued growth.
Moreover, the company paid a regular quarterly dividend of $0.515 per share, reflecting its robust financial position.
Considering DOV's high profitability, strong financials, and growth prospects, now might be the ideal time to consider adding DOV to one's investment portfolio.
How Does Dover Corporation (DOV) Stack Up Against Its Peers?
While DOV has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry with A (Strong Buy) or B (Buy) ratings: Amada Co. Ltd. ADR (<a href="https://stocknews.com/stock/AMDLY/">AMDLY</a>), TechnoPro Holdings Inc. ADR (<a href="https://stocknews.com/stock/TCCPY/">TCCPY</a>), and Taylor Devices, Inc. (<a href="https://stocknews.com/stock/TAYD/">TAYD</a>).
For exploring more A and B-rated industrial stocks, <a href="https://stocknews.com/category/industrial-machinery/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>
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DOV shares were trading at $191.13 per share on Thursday afternoon, up $0.80 (+0.42%). Year-to-date, DOV has gained 25.67%, versus a 28.23% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/dov-amdly-tccpy-tayd-does-dover-corporations-diversified-portfolio-make-it-a-buy-now/>Does Dover Corporation's Diversified Portfolio Make It a Buy Now?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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