More than crops are growing these days as the proficiency and
proliferation of modern farming makes its way across the globe. To
meet the demands of an ever-increasing population, private
investment and public subsidies from governments, East to West, are
giving a boost to the machines behind agricultural management.
In the last week, the Farm Equipment sector has gained 52 positions
on the Zacks Industry Rank list. The 8 companies in this industry
now rank #32 out of 260 industries. These businesses have recently
seen 33 positive earnings estimate revisions compared to 7 negative
revisions, averaging a positive Earnings per Share (EPS) surprise
In addition to farming, some of these companies also supply
industrial machinery for infrastructure maintenance (street
sweepers, embankment mowers, snow plows). These are getting a boost
from renewed government spending on public works projects.
Both of the following manufacturers have been upgraded this week to
a Zacks Rank #1 (Strong Buy). An upgrade in rank from a Buy or Hold
to a Strong Buy demonstrates that a given stock may be gaining
value in response to future positive earnings estimate revisions.
An understanding of wider industrial trends combined with in-depth
company research can provide investors with enhanced perception of
future value. Both of these companies have also seen sharp
increases in consensus estimates recently, another positive
indicator that a stock may be on track for growth.
And when it comes to managing growth, these companies have all the
Kubota Corp - ADR
KUBTY was upgraded to a Zacks Rank #1 (Strong Buy) last week from
#2 (Buy). Its next expected earnings report is on November 1, 2013.
Kubota is the world's largest maker of small tractors and Japan's
2nd largest manufacturer of farm equipment. The company makes
engines, construction machinery, industrial castings and machinery,
waste recycling plants, prefab housing and pumps. Due to massive
growth in overseas revenues (42%), partly from restored economic
progress in China, their farming and industrial business is seeing
Alamo Group Inc.
ALG is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank
#3 (Hold) just last week. This company reports quarterly earnings
on November 5, 2013.
Alamo Group Inc. is a leading manufacturer of high quality
equipment for right-of-way maintenance and agriculture. Their
products include tractor-mounted mowing and other vegetation
maintenance equipment, street sweepers, agricultural implements and
related after-market parts and services. Strategic
acquisitions of complementary companies have helped Alamo build
organic growth by increasing cross-selling opportunities and market
coverage while consolidating manufacturing.
ALG's most recent earnings surprise was +27%.
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