) reached a new 52-week high of $26.95 during its trading session
on Dec 26. This is an increase over the previous high of $26.85
reached on Dec 24.
ENERSYS INC (ENS): Free Stock Analysis Report
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REXNORD CORP (RXN): Free Stock Analysis
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Rexnord Corporation ended the trading day on Dec 26 at $26.69,
reflecting a year-to-date return of 22.9%. The trading volume for
the session was 0.81 million shares. Further upside potential
exists for this Zacks Rank #2 (Buy) mechanical components
manufacturer, reflected by its positive earnings estimate
revisions in the last 60 days and expected earnings growth of
44.4% for fiscal 2014.
Shares of Rexnord Corporation have risen 18.9% since the company
reported its financial results for the fiscal second quarter of
2014 (ended Sep 2013) on Oct 24, 2013. Top-line results were
impressive and the year-over-year growth of 3% was driven by its
diversified product portfolio, improving demands, and benefits
from growth initiatives undertaken.
Earnings per share of 31 cents, was up 29% year over year and
beat the Zacks Consensus Estimate of 26 cents. For fiscal 2014,
Rexnord anticipates core sales to grow within the 3%-4% range and
earnings per share to range within $1.32-$1.38, up from
$1.12-$1.18 expected earlier.
Rexnord seems well positioned to grow its Process & Motion
Control and Water Management platforms. This growth prospect is
supported by the increasing backlog in the non-residential
construction market of U.S. and Canada, growing demand for clean
water and rising demand in the aerospace industry.
Also, acquisitions are expected to play a major role in expanding
Rexnord's businesses. Recently, the company acquired the assets
of Precision Gear Holdings, LLC (PGH). The acquisition is likely
to widen Rexnord's product offerings within its Process and
Motion Control platform.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for Rexnord
Corporation has increased by 1.5% to $1.34 for fiscal 2014 and by
1.2% to $1.69 for fiscal 2015. Also, expected earnings growth
rate for the next five years is 23.4%.
Rexnord Corporation currently has a market capitalization of $2.6
billion. Other favorably ranked stocks in the industry include
Pioneer Power Solutions, Inc.
). All three hold a Zacks Rank #1 (Strong Buy).