On Aug 13, 2013, we upgraded our recommendation on
Alliant Techsystems Inc.
) to Outperform from Neutral. The company currently has a Zacks
Rank #1 (Strong Buy).
Why the Upgrade?
There are several catalysts, including Alliant's favorable
performance in the first quarter of fiscal 2014 and a likely
positive impact from the acquisition of Caliber Company in the
forthcoming quarters, which led us to upgrade our recommendation
on the stock.
In the first quarter of fiscal 2014, Alliant's earnings per share
and revenues surpassed the Zacks Consensus Estimates. The
improvement in performance was primarily driven by strong sales
at the company's Aerospace and Sporting divisions, lower interest
expenses, and a decrease in tax rate and share counts.
In Jun 2013, Alliant acquired Caliber Company with a transaction
value of $315 million. This acquisition is enhancing the
company's product coverage while strengthening its market
penetration. We expect the acquisition to be an important growth
driver for Alliant's future performance, given the improving
demand for sporting goods in the U.S.
In addition, improvement in operational efficiency as a result of
the realignment of Alliant's business segments and steady focus
on technological innovation also propelled us to change our
Other Stocks to Consider
Other stocks in the industry that are currently performing well
), each with a Zacks Rank #2 (Buy).
Arlington, Va.-based Alliant Techsystems is an aerospace and
defense company, supplying products to the U.S. government
agencies, and its prime contractors and sub-contractors.
AAR CORP (AIR): Free Stock Analysis Report
ALLIANT TECHSYS (ATK): Free Stock Analysis
CURTISS WRIGHT (CW): Free Stock Analysis
DUCOMMUN INC DE (DCO): Free Stock Analysis
To read this article on Zacks.com click here.