), a machinery company, scaled a new 52-week high of $75.37 on Jun
9. This marks a nominal increase from the previous high of $75.18
hit on May 13.
Colfax closed the session at $74.91, reflecting a solid return
of 17.6%, year to date. The trading volume for the session was 493K
shares. An expected earnings growth rate of 19.5% over the next
five years indicates further upside potential for the company.
Colfax has huge growth potential given significant contribution
from acquisitions. The company acquired Victor Technologies in
April this year, for a total consideration of $947.3 million. The
acquired assets will complement Colfax's ESAB business and help its
expansion in new markets and applications.
Both the company segments - Fabrication Technology and Gas &
Fluid Handling - are in a strong position. The former segment is
expected to witness long-term mid-single digit growth due to
secular trends and increasing application complexity.
Expecting these factors to boost 2014 results, the company has
increased its top-line guidance to a $4.85−$4.99 billion range from
the previously projected range of $4.5−$4.625 billion. Earnings per
share are expected to be within $2.45−$2.70, slightly up from the
prior expectation of $2.40−$2.65.
In the last 60 days, the Zacks Consensus Estimate for Colfax has
inched up by 0.8% to $2.60 for 2014 and by 2.6% to $3.21 for 2015.
The Zacks Consensus Estimate also reflects year-over-year growth of
27.6% for 2014 and 23.2% for 2015.
Other Stocks to Consider
With a Zacks Rank #3 (Hold), Colfax currently has a market
capitalization of $9.3 billion. Some better-ranked stocks in the
Blount International Inc.
). While Gorman-Rupp sports a Zacks Rank #1 (Strong Buy), Blount
International and Dover Corp. carry a Zacks Rank #2 (Buy).
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