) hit a 52-week high of $41.88 during yesterday's trading
session. However, the stock closed at $41.29, reflecting a solid
year-to-date return of 69.9%. The average trading volume for the
last three months aggregated 586,505 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 $3.8 billion and long-term
earnings growth expectations of 13.0%.
ITT Corporation has a strong balance sheet and generates a
substantial cash flow. In the last reported quarter, the company
reported a strong top-line and bottom line driven by higher
revenues across its businesses and regions. In addition, the
company's strong performance in high-growth energy,
transportation and industrial end markets were some of the
catalysts driving the stock.
On Nov 11, ITT Corporation reported strong 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 year.
The company witnessed volume growth, higher backlogs and
superior performances across most of the 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,
with more than $480.6 million in cash & 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 to be in the range of $1.97 to $2.00,
against $1.86 to $1.92 per share anticipated earlier. Total
revenue is expected to grow 11% to 12% compared to earlier
expectations of 10% to 11%. Organic revenues are expected to grow
in the range of 5% to 6% from 3% to 4% mentioned
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, partially offset by weakness in the
mining and defense end markets.
Over the last 7 days, the earnings estimates did not have any
upward or downward revision for 2013. Although there is a lacuna
of estimate revisions, we envision an uptrend for the stock
backed by its strong growth potential.
Other Stocks to Consider
Some other stocks operating in the same sector with favorable
Zacks Ranks include
Hutchison Whampoa Limited
). All three stocks carry Zacks Rank #2 (Buy).
CLARCOR INC (CLC): Free Stock Analysis Report
HUTCHINSON WHAM (HUWHY): Get Free Report
ITT CORP (ITT): Free Stock Analysis Report
REXNORD CORP (RXN): Free Stock Analysis
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