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Aggreko plc (ARGKF) Down to Strong Sell on Bleak Prospects

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Zacks Investment Research downgraded Aggreko plcARGKF to a Zacks Rank #5 (Strong Sell) on Sep 10, 2015. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.

Why the Downgrade?

Market sentiments have been weak for Aggreko plc since the company reported disappointing results for the first six months of 2015. The stock has fallen 10.3% since Aug 6, while losing 26.8% year to date. A brief snapshot of the company's half-yearly results will justify the deterioration in its investment value.

Aggreko plc's businesses in the Americas and Asia, Pacific & Australia were weak in the first half of 2015, that led to a decline of nearly 2% in underlying revenues. Also, revenue from power projects was down 9%. Underlying trading profit decreased 22% year over year, while reported diluted earnings per share fell 19%.

For second-half 2015, Aggreko plc anticipates tough operating conditions to continue impacting its top- and bottom-line performances. Lower oil prices in North America, weakness in power projects as well as geopolitical issues will be major concerning factors.

A dismal performance and weak outlook have made investors skeptical about Aggreko plc's prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock has declined 13.3% for 2015 and 17.4% for 2016. Also, the company has an Earnings ESP of -4.51% for 2015 and -5.26% for 2016.

Stocks to Consider

Aggreko plc currently has a market capitalization of $4.2 billion. Better-ranked stocks in the sector include Codexis, Inc. CDXS , Holdings PLC LXFR and Graco Inc. GGG , each holding a Zacks Rank #2 (Strong Buy).

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GRACO INC (GGG): Free Stock Analysis Report

AGGREKO PLC (ARGKF): Free Stock Analysis Report

CODEXIS INC (CDXS): Free Stock Analysis Report

LUXFER HOLDINGS (LXFR): 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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