) hit a new 52-week high of $43.58 during yesterday's trading
session. However, the stock closed at $43.50, reflecting a solid
year-to-date return of 78.9%. Its average trading volume for the
last three months aggregated 730,331 shares.
ITT Corporation delivered positive earnings surprises in the
last four quarters with an average beat of 9.4%. This Zacks Rank
#2 (Buy) stock has a market cap of $3.95 billion and long-term
earnings growth expectations of 12.6%.
ITT Corporation has a strong balance sheet and generates
substantial cash flow. In the last reported quarter, the company
witnessed a solid top line and bottom line, driven by higher
revenues across its businesses and regions. In addition, the
company's strong performance in the high-growth energy,
transportation and industrial end markets were some of the
catalysts driving the stock.
On Nov 11, ITT Corporation reported impressive third-quarter
2013 results with earnings increasing 11.1% year over year,
primarily driven by gains in key geographies and strategic end
market. The company's top line also rose 15.8% year over
ITT Corp. witnessed volume growth, higher backlogs and
superior performances across most end markets including a 56%
growth in energy, 14% growth in transportation and 1% growth in
Industrial. In addition, the company maintains a sound and
flexible balance sheet with ample liquidity that enables it to
capitalize on potential acquisition opportunities to fuel
its top-line growth. ITT Corporation has a pristine balance
sheet, comprises $480.6 million in cash and cash equivalents and
no long-term debt.
Driven by strong top-line growth in the second quarter,
management increased its earnings per share guidance for fiscal
2013. Earnings are expected in the range of $1.97 to $2.00,
against $1.86 to $1.92 per share anticipated earlier. Total
revenue is estimated to grow 11% to 12% compared to earlier
expectations of 10% to 11%. Organic revenues are predicted to
grow in the range of 5% to 6% versus the earlier band of 3% to
Increased guidance is driven by growth in the oil and gas,
chemical and industrial markets; share gains in the global
automotive market; the impact of the Bornemann Pumps acquisition
and emerging market growth. But these were partially offset by
weakness in the mining and defense end markets.
Over the last 60 days, the earnings estimates for fiscal 2013
and 2014 have been revised upwards. Therefore, we envision an
uptrend for the stock backed by its strong growth potential with
estimates rising by 4.2% to $2.00 for 2013 and by 2.7% to $2.30
Other Stocks to Consider
Some other stocks operating in the same sector with favorable
Zacks Ranks include
Carlisle Companies Inc.
Raven Industries Inc
). All these stocks carry Zacks Rank #2 (Buy).
CLARCOR INC (CLC): Free Stock Analysis Report
CARLISLE COS IN (CSL): Free Stock Analysis
ITT CORP (ITT): Free Stock Analysis Report
RAVEN INDS INC (RAVN): Free Stock Analysis
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