Colfax Reaches a New 52-Week High - Analyst Blog

By
A A A

Shares of Colfax Corporation ( CFX ) touched a new 52-week high of $74.78 during its trading session on May 8. The primary driver was the company's stellar performance in first-quarter 2014. The new 52-week high improved upon the last 52-week high of $74.09 hit on May 6.

Colfax closed the trading on May 8 at $73.90, reflecting a solid year-to-date return of 60.7%. The trading volume for the session was 0.49 million. Earnings estimate revisions for 2014 and 2015 and an expected earnings growth rate of 19.5% for the next five years indicate further upward potential for this manufacturing and engineering company.

Growth Drivers


Colfax's impressive first-quarter 2014 results not only triggered positive revisions in earnings per share estimates, but also drove the share price up by 2.1% since Apr 24, 2014. Earnings were 43 cents per share, surpassing the year-ago figure by 65.4%. However, the bottom-line result lagged the Zacks Consensus Estimate by a penny.

Revenues grew 11.3% on the back of 5.6% organic growth and 9.0% gain from acquisitions, offset by a 3.3% negative impact from currency translation. Orders at $583 million were up 16.2% while backlog grew 10.7%.

For 2014, Colfax anticipates the Victor acquisition, completed in April, to boost its results. Accordingly, the company has increased its top-line guidance to a $4.85−$4.99 billion range from the previous projection 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.

Impressive results, a robust outlook as well as a positive average earnings surprise of 3.1% have made us optimistic about Colfax's performance in the coming quarters. The company has an Earnings ESP of +1.54% for second-quarter 2014 and +0.39% for full-year 2014.

Estimate Revisions Show Potency

In the last 30 days, the Zacks Consensus Estimate for Colfax has inched up by 0.4% to $2.59 for 2014 and by 2.6% for 2015. The consensus estimate also reflects year-over-year growth of 26.9% for 2014 and 23.8% for 2015.

Colfax presently has a market capitalization of $9.13 billion and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Gorman-Rupp Co. ( GRC ), Illinois Tool Works Inc. ( ITW ) and Nordson Corp. ( NDSN ). While Gorman-Rupp carries a Zacks Rank #1 (Strong Buy), both Illinois Tool Works and Nordson hold a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

COLFAX CORP (CFX): Free Stock Analysis Report

GORMAN RUPP CO (GRC): Free Stock Analysis Report

ILL TOOL WORKS (ITW): Free Stock Analysis Report

NORDSON CORP (NDSN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: CFX , GRC , ITW , NDSN

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

105,858,039
  • $10.50 ▲ 3.04%
105,433,684
  • $29.22 ▲ 4.62%
72,716,790
  • $16.36 ▼ 0.49%
51,381,067
  • $113.29 ▲ 0.33%
47,443,661
  • $2.39 ▲ 4.82%
45,387,229
  • $5.78 ▲ 0.87%
45,001,566
  • $105.62 ▼ 0.02%
42,379,286
  • $28.42 ▲ 2.53%
As of 8/28/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com