Manitowoc Hits New 52-Week High - Analyst Blog


The Manitowoc Company, Inc. ( MTW ) hit a new 52-week high of $32.22 during intraday trading before closing lower at $31.98 on March 17. The commercial foodservice equipment manufacturer delivered a robust one-year return of about 56.4%, outperforming the S&P 500 return of 21.44%.

Over the past 52 weeks, Manitowoc's share price has ranged from a 52-week low of $16.18 on Jun 24, 2013, to a 52-week high of $32.22 on Mar 17, 2014. Average volume of shares traded over the last 3 months is approximately 3,057K. Manitowoc has a market cap of $4.3 billion and long-term estimated earnings per share growth rate of 15%.

What's Driving Manitowoc Upward?

Shares of Manitowoc started escalating following its strong fourth-quarter results on Jan 30. Adjusted earnings per share were 47 cents, a 74% year-over-year increase, helped by sound performance of the Foodservice segment, successful introduction of new products as well as the company's cost control initiatives. The bottom line beat the Zacks Consensus Estimate of 33 cents.

Reports that its new product launches have been received well at the ConExpo 2014, which ended on Mar 8, also helped boost shares. ConExpo, an international exhibition held every three years, offers a major platform for companies like Manitowoc to introduce their products. Manitowoc launched 10 new products this year, including cranes and booms. The success of these products will be a catalyst for the company.

For 2014, Manitowoc expects modest top-line growth for the Crane segment. Foodservice revenues are expected to rise in mid single digits. The company forecasts high single-digit improvement in operating margins in the Crane segment and high-teens gain in the Foodservice segment.

Moreover, demand in the wind sector and oil and gas market are expected to grow. The incorporation of advanced technology, innovation in brands and manufacturing initiatives will also aid in growth. Manitowoc will also benefit from execution of its new credit agreement, cost reduction, process improvement initiatives and debt repayment.

Other Stocks to Consider

Manitowoc currently carries a short term Zacks Rank #2 (Buy). Other stocks worth considering in the sector include Zebra Technologies Corp. ( ZBRA ), Komatsu Ltd. ( KMTUY ) and Alamo Group, Inc. ( ALG ). While Zebra Technologies sports a Zacks Rank #1 (Strong Buy), Komatsu and Alamo Group hold a Zacks Rank #2.

ALAMO GROUP INC (ALG): Free Stock Analysis Report


MANITOWOC INC (MTW): Free Stock Analysis Report

ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALG , KMTUY , MTW , ZBRA

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