For Immediate Release
Chicago, IL - January 12, 2012 - Stocks featured in this week's
Zacks Industry Rank analysis include
Zacks Industry Rank Analysis is written by Dirk Van Dijk, CFA,
Chief Equity Strategist, Zacks.com.
Machinery Running Smoothly
There are five separate Machinery "industries" that make the top
40 of Zacks' 258 Industries. The best performing of them is
the smallest by number of companies: The Industrial
Automation/Robotics Industry, in 13th place -- representing an
improvement of 8 spots since last week. Its average Zacks
Rank is 2.25, down (a good thing) from 2.50 last week.
The next best is the Machine Tools Industry, with seven members and
in 20th place -- slipping six spots from last week as its average
rank rose to 2.43 from 2.29. The Farm Machinery Industry also
has seven members in it, and come in 30th place, a four spot
improvement. Its average rank was unchanged at 2.57.
The largest of the five groups by far is the General Industrial
Machinery group with 38 firms in it. It is in 38th place, an
8-spot deterioration as the average rank increased to 2.61 from
2.45. Filling out the group is Construction and Mining
Machinery, an eight member group in 40th place, a huge improvement
of 128 spots as the average rank plunged to 2.63 from 3.13.
If the Zacks Ranks were distributed randomly, one would expect that
only 5% of the members of these "industries" would earn the coveted
Zacks #1 Rank (Strong Buy). Instead, 11 of the 64 (17.3%)
have earned that distinction. If it were random, only 15%
would hold Zacks #2 Ranks (Buy) but actually 10, or 15.6%, hold it.
Some of the names on the lists below are large will know household
names, such as
), but there are also some very small firms as well.
The valuations are for the most part reasonable, and while I don't
show the FY2 over FY1 growth on the tables, you can get a good idea
of it by looking at how much lower the P/E for next year is
relative to the P/E for this year. Most are expecting solid,
but not spectacular growth, and you are paying a reasonable price
for those earnings. Not rock bottom for the most part, but
Most are seeing big increases in their estimates for both this year
and next. However, just as a word of warning, the smaller
firms tend to be thinly covered, so an individual analyst raising
his or her numbers for the firm has a much bigger impact on the
mean estimate than is the case with the big well-covered
companies. Many of the firms pay at least some dividend, but
most of the yields are relatively low.
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for information about the performance numbers displayed in this
Zacks Investment Research is under common control with
affiliated entities (including a broker-dealer and an investment
adviser), which may engage in transactions involving the foregoing
securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
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offer or solicitation to buy or sell any security.
Contact: Dirk Van Dijk, CFA
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