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Actuant (ATU) Stock Looks Bullish on Solid Growth Drivers

On Jan 24, 2017, we issued an updated research report on Actuant CorporationATU .

Over the last three months, shares of this Zacks Rank #1 (Strong Buy) stock recorded a return of 22.96% - outperforming 8.84% provided by the Zacks categorized Machine-Tools & Related Products industry.

Why Should You Grab the Stock?

Actuant has an average earnings surprise of 11.47% for the last four quarters. The company has been steadily improving its profitability on the back of its unique business model (primarily focused on lucrative innovation and growth projects) and tight cost-management initiatives. The company has raised its adjusted earnings guidance from $1.00-$1.20 to $1.10-$1.30 per share for fiscal 2017.

Moreover, the company is aimed at becoming a high-performing company on the back of meaningful restructuring moves. In sync with this strategy, the company divested its Sanlo product line in fourth-quarter fiscal 2016. Notably, the company anticipates accruing savings from its ongoing restructuring programs in the second half of fiscal 2017. These calculated portfolio shifts are likely to make Actuant a more resilient company, moving ahead.

Notably, the company has been boosting its business via strategic acquisitions. For instance, the FourQuest Energy Inc. buyout, completed in Mar 2016, has been driving the company's energy business revenues for the past few quarters. In addition, in Jun 2016, Actuant deployed $65 million for a tuck-in acquisition; through which, it invested capital in pipeline & process services in the Middle East region for strengthening its acquired Hydratight business. The deal is expected to reinforce the company's Hydratight business sales in the quarters ahead.

In addition to this, Actuant is highly committed toward its shareholders and intends to provide them higher returns with lucrative capital deployment programs.

Over the last 60 days, the Zacks Consensus Estimate for the stock moved north for both fiscal 2017 and 2018.

Key Picks

Some other favorably placed stocks from the same space are listed below:

Apogee Enterprises, Inc. APOG has an average earnings surprise of 13.24% for the last four quarters and presently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

ABB Ltd. ABB presently flaunts a Zacks Rank #1 and has an average earnings surprise of 23.50% for the trailing four quarters.

Altra Industrial Motion Corp. AIMC also boasts a Zacks Rank #1 and has an average earnings surprise of 8.06% for the past four quarters.

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ABB Ltd (ABB): Free Stock Analysis Report

Actuant Corporation (ATU): Free Stock Analysis Report

Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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