) reached a new 52-week high of $29.73 during the trading session
on Feb 24. The new 52-week high reflects an increase over $29.39
reached on Feb 18.
ACTUANT CORP (ATU): Free Stock Analysis
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LENNOX INTL INC (LII): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
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Rexnord Corporation closed the trading on Feb 24 at $29.14,
reflecting a solid year-to-date return of 43.9%. The trading
volume for the session was 0.46 million shares. The company is a
mechanical components manufacturer and currently carries a Zacks
Rank #4 (Sell). We believe its strong fundamentals along with
solid earnings growth expected for 2014 and 2015 warrant further
upside potential for Rexnord.
Rexnord Corporation reported impressive third-quarter fiscal 2014
(ended Dec 28, 2013) results on Jan 28. Shares, since then, have
risen 6.3%. A brief snapshot of the company's results has been
Earnings per share, adjusted for one-time items, were 34 cents in
the quarter, above 19 cents earned in the year-ago quarter and
the Zacks Consensus Estimate of 32 cents. Net sales generated
were $489.1 million, up 3.7% year over year, primarily on the
back of healthy organic sales growth at the Water Management
For fiscal year 2014, Rexnord raised its earnings per share
guidance to a range of $1.35-$1.39 from the earlier-expected
range of $1.32-$1.38. The revision came on the heels of a solid
third-quarter performance and the completion of the acquisition
of Precision Gear Holdings.
In conjunction with the earnings release, Rexnord offered 3
million common shares to the public at $25.75 per share. The
offering closed on Feb 5. Net proceeds derived from the offering
will be utilized for general corporate purposes.
Impressive fiscal third-quarter 2014 results and an improved
earnings guidance backed by a positive average earnings surprise
of 15.2% have led to expectations of better performances in the
Earnings Growth Rates Show Potency
The Zacks Consensus Estimate for Rexnord Corporation is at $1.29
for fiscal 2014 and at $1.70 for fiscal 2015, reflecting
year-over-year growth of 38.7% and 31.8% respectively. Also,
earnings in the next five years are expected to grow 22.7%, much
above the 13.8% expected for the industry.
Rexnord Corporation currently has a $2.9 billion market
capitalization. Some better-ranked stocks in the diversified
machinery industry include
Lennox International, Inc.
), all of which hold a Zacks Rank #2 (Buy).