Lately, Ituran Location and Control Ltd. ITRN has been experiencing strong traction across its business operations. The company's policy of making accretive acquisitions and continued addition of new subscribers might continue to be growth drivers, going ahead.
Given this backdrop, let's delve deeper to find out the key factors that make this Zacks Rank #1 (Strong Buy) company an attractive proposition for investors right now.
Factors to Consider
Ituran's operations across key markets and several geographies are one of its biggest strengths, which help in offsetting weakness in a single market. Over the last few years, the company's subscriber base has grown significantly, with about 1.8 million subscribers at present. Its array of location-based services and solutions allows it to be flexible and customer-driven, creating competitive advantages for its customers. Notably, the company's near-term revenues and profitability are poised to get a boost from strong demand across end markets.
In addition, the company has been witnessing solid activity on the earnings estimate revision front, reflecting bullish sentiments. In the past couple of months, the Zacks Consensus Estimate for 2018 earnings has trended up from $2.04 to $2.08 on the back of one upward estimate revision versus none downward.
In the past year, shares of the company have lost 8.5%, narrower than the industry 's decline of 24.7%.
In addition, Ituran prefers to invest in acquisitions to gain access to new customers, regions and product line. In this regard, the company's recent buyout of Road Track Holdings is likely to enable it to further penetrate major car manufacturing industry. Also, it will offer the company a substantial scale in the telematics industry apart from enabling it to expand its service offering in new markets.
Other Stocks to Consider
Some other top-ranked stocks from the same space are Alarm.com Holdings, Inc. ALRM , Brady Corporation BRC and Avery Dennison Corporation AVY . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Alarm.com Holdings has surpassed estimates in each of the trailing four quarters, with an average positive earnings surprise of 26.79%.
Brady has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 5.20%.
Avery Dennison has outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 6.10%.
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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 report Avery Dennison Corporation (AVY): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Ituran Location and Control Ltd. (ITRN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research