The Manitowoc Company, Inc.
) 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%.
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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
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
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.
Alamo Group, Inc.
). While Zebra Technologies sports a Zacks Rank #1 (Strong Buy),
Komatsu and Alamo Group hold a Zacks Rank #2.