Shares of commercial foodservice equipment manufacturer
Manitowoc Company, Inc.
) reached a new 52-week high of $30.70 on Feb 20, ahead of its
previous high of $29.29 on Jan 31. Average volume of shares
traded over the last three months stood at approximately 2902K.
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Over the past 52 weeks, Manitowoc's shares have ranged between a
52-week low of $16.18 on Jun 24, 2013 to the new 52-week high.
The company has delivered a robust one-year return of about
55.10%, outperforming the S&P 500. Manitowoc has a market cap
of $4.1 billion. Manitowoc has 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
Furthermore, shares have also found support in China's January
trade data, which showed acceleration contrary to expectations.
This has eased fears of a slowdown in the world's second-largest
economy. In January, imports to the country rose 10% year over
year and exports rose 10.6%. Manitowoc and other
machinery-construction and mining stocks including
), which had otherwise been affected by the low demand in
construction and mining, particularly in China benefitted from
For 2014, Manitowoc expects modest top-line growth in the Crane
segment. The company forecasts high single-digit improvement in
operating margins of the Crane segment.
Crane utilization and rental rates continue to improve with
demand. Going forward, demand from the wind sector as well as
from oil and gas markets is expected to grow. Manitowoc remains
optimistic regarding its new products, which include an array of
technologically advanced products that will be launched at
ConExpo, the premier construction-equipment trade show that is
slated to be held in Mar 2014. This could be a catalyst for the
Crane segment. A turnaround in the construction sector will also
boost Crane sales.
Foodservice Equipment revenues are expected to rise in mid-single
digits and the company expects a high-teens gain in segment
margins. The segment will benefit from new manufacturing
facilities, restructuring initiatives and new products.
In Jan, 2014, Manitowoc announced that it has refinanced some of
its debt, which is expected to save approximately $20 million of
interest expense in 2014.
Other Stocks to Consider
Currently, Manitowoc carries a Zacks Rank #1 (Strong Buy). Some
other stocks worth considering in the sector include
Joy Global, Inc.
Zebra Technologies Corp.
). While Zebra Technologies carries a Zacks Rank #1, Joy Global
holds a Zacks Rank #2 (Buy).