TriMas CorporationTRS remains well poised for growth driven by its focus on leveraging the TriMas Business Model, segment restructuring and a strong pipeline of both product as well as process innovation. The stock has an estimated long-term earnings growth rate of 5%.
Let's delve deeper into the factors that make this steel maker an attractive investment option.
What's Working in Favor of TriMas?
Impressive Rank & Score Combination: The maker of engineered and applied products, with a market capitalization of approximately $1.42 billion, carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
TriMas currently has a Zacks VGM Score of B. Here V stands for Value, G for Growth and M for Momentum. Such a score allows you to eliminate the negative aspects of stocks and select winners. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Northbound Estimates: A positive trend in estimate revisions reflects optimism over the company's prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings for both fiscal 2018 and fiscal 2019 has moved up 1%. The Zacks Consensus Estimate for earnings for fiscal 2018 is pegged at $1.72 projecting year-over-year growth of 23%. For fiscal 2019, the Zacks Consensus Estimate is expected to climb 8% to $1.85.
Positive Earnings Surprise History: The company has surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 2.28%.
An Outperformer: TriMas has outperformed its industry with respect to price performance over the past year. The stock has appreciated around 17% while the industry has dipped 19%.
Upbeat 2018 Guidance: TriMas projects earnings per share between $1.65 and $1.75 for 2018, reflecting year-over-year growth of 21% at the mid-point. The company estimates organic sales to be up around 5%. General industrial activity levels have improved, particularly in the United States, and this bodes well for TriMas. The company is well positioned to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales growth programs. The company has also refocused certain commercial efforts, including realigning as well as enhancing its sales functions and improvement of cost structure.
Long-Term Growth Drivers in Place: The company will continue to focus on leveraging the TriMas Business Model to drive performance which will fuel long-term growth. Its innovative solutions through product, process or service, as well as extensive resources will help enhance business performance. The company also has a strong pipeline of both product and process innovation that will sustain long-term growth. Consequently, this positions it well to capitalize on market opportunities as well as minimize market disruptions.
Other Stocks to Consider
Some other top-ranked stocks in the same sector include Albany International Corporation AIN , W.W. Grainger, Inc. GWW and Alarm.com Holdings, Inc. ALRM . While Albany International and Grainger sport a Zacks Rank #1, Alarm.com Holdings carries a Zacks Rank #2.
Albany International's earnings estimates for full-year 2018 have increased by 27% while estimates for 2019 rose 21%. The company currently sports a Zacks Rank #1. Its shares have gone up 45% over the past year.
The fiscal 2018 and fiscal 2019 consensus estimate for earnings for Grainger have moved up 8% and 6%, respectively, in the last 60 days. The company flaunts a Zacks Rank #1. Its shares have surged 110% in the past year.
Alarm.com Holdings also witnessed positive estimates revisions for fiscal 2018 and 2019. The Zacks Consensus Estimate for fiscal 2018 has gone up 5% over the past 60 days while estimates for fiscal 2019 inched up 1%. The company currently carries a Zacks Rank #2. Its shares have surged 30% over the past year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportTriMas Corporation (TRS): Free Stock Analysis ReportAlarm.com Holdings, Inc. (ALRM): Free Stock Analysis ReportAlbany International Corporation (AIN): Free Stock Analysis ReportW.W. Grainger, Inc. (GWW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research