On May 31, Zacks Investment Research downgraded
Raven Industries Inc.
) to Zacks Rank #5 (Strong Sell).
COMPASS DIVERSF (CODI): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
ITT CORP (ITT): Free Stock Analysis Report
RAVEN INDS INC (RAVN): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Downgrade?
Raven Industries' share price and earnings estimates have
witnessed a downward trend after reporting disappointing results
for first-quarter 2014 on May 20. Earnings estimates of this
industrial manufacturer of products have been on the downside on
the back of a tepid fiscal 2014 outlook due to sluggish economic
conditions and continued headwinds for all of its segments.
Raven's first-quarter 2014 earnings per share of 38 cents
declined 27% year over year and fell 14% short of the Zacks
Consensus Estimate of 44 cents. Weakness in the Applied
Technology Division, declining demand from U.S. agency customers
in Aerostar and a moderated energy market in Engineered Films led
to the overall decline.
Raven's Aerostar segment will continue to face continued
government uncertainty and sluggish demand. Continued energy
market weakness will impede Engineered Films segment's
performance while the Applied Technology segment will continue to
face weather related weakness. Overall, margins will be under
pressure due to the company's heightened investments in new
initiatives and the resultant increase in research and
development and selling, general and administrative expenses.
Over the last 7 days, the Zacks Consensus Estimate for Raven's
fiscal 2014 earnings decreased 16% to $1.23 per share, while for
fiscal 2015 it went down 14% to $1.41 per share.
Other Stocks to Consider
Not all stocks in the same industry are performing as poorly as
Raven. We recommend
Compass Diversified Holdings
Honeywell International Inc.
) holding a Zacks Rank #2 (Buy).