On Aug 29, Zacks Investment Research upgraded
The Andersons Inc.
) to a Zacks Rank #1 (Strong Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
AMIRA NATURE FD (ANFI): Free Stock Analysis
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Why the Upgrade?
Share price and earnings estimates for Andersons have been
trending upward on the back of strong second-quarter 2013 results
reported on Aug 7. Moreover, shares of this diversified company,
which operates in six different business segments ranging from
buying, selling and storing grain to leasing railcars and running
retail stores, attained its 52-week high of $67.66 on Aug 29. The
long-term expected earnings growth rate for this stock is 12%.
Andersons reported second-quarter 2013 earnings of $1.57 per
share, up 1% from $1.56 per share earned in the year-ago
quarter and beat the Zacks Consensus Estimate of $1.52 by 3%. The
upbeat results were driven by record operating profit at the
Ethanol and Rail Groups, and increased profit in the Retail
Group. Andersons delivered positive earnings surprises in two of
its last four quarters with an average beat of 48.13%.
In July, Andersons, in association with Lansing Trade Group,
finalized the acquisition of Blenheim, Ontario-based Thompsons
Limited, a grain and food-grade bean handler and agronomy input
provider. Thompsons operates through 12 Andersons' grain and
nutrient businesses and is expected to be accretive to earnings
for full year 2014.
In August, Andersons announced the acquisition of Kansas City,
Miss.-based railcar repair and cleaning provider Mile Rail, LLC.
The acquisition, which is expected to be finalized in the third
quarter, is a strategic fit with Andersons' Rail Group and is
projected to increase its railcar repair revenues by 25%. Going
forward, the Rail Group is expected to continue to perform well
based on proficiently managed railcar portfolio.
The Zacks Consensus Estimate for 2013 increased 1% to $4.13 per
share over the last 30 days. For 2014, the Zacks Consensus
Estimate moved north by 3% to $5.26 per share.
Other Stocks to Consider
Amira Nature Foods Ltd.
Pilgrim's Pride Corporation
), both carrying a Zacks Rank #1, and
Boulder Brands, Inc.
), with a Zacks Rank #2(Buy), are performing well and are
also worth considering.