On January 4, Zacks Investment Research downgraded
Raven Industries Inc.
( RAVN) to a Zacks #5 Rank (Strong Sell).
Why the Downgrade?
Raven Industries has witnessed sharp downward estimate
revisions and hit its 52-week low after reporting disappointing
results for third-quarter 2012 on November 20. Shares of this
industrial manufacturer of products for the agricultural,
industrial, construction and military/aerospace markets have
dipped to the $20 range since August (post-second quarter
results) from the prior $30 range.
Raven's third-quarter earnings per share of 30 cents missed
the Zacks Consensus Estimate of 34 cents. On a year-over-year
basis, earnings dipped 3%.
Raven's Aerostar will continue to be impacted by a lack of
aerostat orders and the Engineered Films segment will also likely
face a challenging environment and tough year-over-year
comparison. Furthermore, given the company's performance so far
in 2012 and expectations of a difficult fourth-quarter, the
long-term earnings growth target of 10-15% seems unlikely in the
The Zacks Consensus Estimate for 2012 decreased 4% to $1.45
per share over the last 60 days. For 2013, the estimate was
revised downward over the last 60 days, sinking the Zacks
Consensus Estimate by 5% to $1.60 per share.
Other Stocks to Consider
Among the other stocks in the same industry,
Carlisle Companies Incorporated
) holds a Zacks #2 Rank (Buy) and is a favorable option for
CARLISLE COS IN (CSL): Free Stock Analysis
RAVEN INDS INC (RAVN): Free Stock Analysis
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