Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy) on Apr 29, 2014. Going by the
Zacks model, companies holding a Zacks Rank #1 have strong
chances of performing better than the broader market.
Why the Upgrade?
Gorman-Rupp kept its earnings beat streak alive in first-quarter
2014, while posting a positive earnings surprise of 35.71%. The
company's average positive earnings surprise for the trailing
four quarters is 21.17%. A brief discussion of first-quarter 2014
results is provided below:
Earnings per share in the quarter were 38 cents, up from 26 cents
recorded in the year-ago quarter and way above the Zacks
Consensus Estimate of 28 cents. Sales grew 19% to $110 million on
the back of healthy performance in the domestic as well as
international markets. Gross margin grew by 200 basis points year
Gorman-Rupp's stellar performance in the quarter induced positive
reactions as evidenced by a hike in earnings estimates. In the
last 7 days, the Zacks Consensus Estimate has increased by 9.4%
to $1.52 for 2014 and by 6.3% to $1.69 for 2015 ??? representing
year-over-year growth of 21.6% for 2014 and 11.2% for 2015.
In the next 5 years, Gorman-Rupp promises solid earnings growth
to the tune of 10% as against 7.4% recorded in the past 5 years.
In the near term, the
for second-quarter 2014 is 0.0% while it is +2.5% for the third
Other Stocks to Consider
Gorman-Rupp presently has a market capitalization of $794
million. Other companies worth considering in the industry
The Babcock & Wilcox Co.
Illinois Tool Works Inc.
Broadwind Energy, Inc.
), all carrying a Zacks Rank #2 (Buy).
BABCOCK&WILCOX (BWC): Free Stock Analysis
BROADWIND ENRGY (BWEN): Free Stock Analysis
GORMAN RUPP CO (GRC): Free Stock Analysis
ILL TOOL WORKS (ITW): Free Stock Analysis
To read this article on Zacks.com click here.