On Jun 25, 2013, Zacks Investment Research upgraded
Lincoln Electric Holdings Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Lincoln Electric's share price and earnings estimates have
witnessed a sharp upward trend on the back of
better-than-expected first-quarter fiscal 2013 bottom-line
results. This manufacturer and reseller of welding and cutting
products delivered impressive results on the back of its
successful consumer-oriented strategies, portfolio realignment
initiatives, product innovation and cost containment efforts.
Despite a 1% year-over-year dip in total revenue, Lincoln
Electric's first-quarter earnings improved 21% to 92 cents per
share, sweeping past the Zacks Consensus Estimate of 78 cents.
Including this earnings beat, the company has consecutively
outperformed the Zacks Consensus Estimate in last three of four
quarters. Average earnings surprise for four quarters in 7.4%.
Despite softer volumes, Lincoln continues to effectively drive
margins through enhanced product mix, optimizing manufacturing
footprint and focusing on cost.
Shares of Lincoln Electric have delivered a year-to-date
return of roughly 14.6%, ahead of the S&P 500. Shares of
Lincoln also attained a 52-week high on May 31 of $60.58.
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Going forward, Lincoln Electric will benefit from its acquisition
strategy, introduction of new products and long-term growth in
its key global markets including power generation, offshore
drilling, pipelines and automotive sectors.
Following the results, the Zacks Consensus Estimate for fiscal
2013 increased 2% to $3.54 and for 2014 it went up 1% to $3.85
per share in the last 60 days.
Other Stocks to Consider
Apart from Lincoln Electric,
Edwards Group Limited
Kawasaki Heavy Industries Ltd.
), all carrying a Zacks Rank #1 (Strong Buy), are capable of
continuing with their upbeat performances.