Bull of the Day: Douglas Dynamics (PLOW)

The bid came back on Wall Street yesterday, but that doesn’t mean that you should run out there and blindly buy every stock that moves. Remember, price momentum can come and go, changing on a dime at the whim of the market. However, earnings trends, those stay intact for weeks, months, even quarters at a time. Finding stocks with strong earnings trends can be a smart way to ride momentum even higher. One way to find stocks with strong earnings trends is by leaning on the time-tested power of the Zacks Rank.

Today’s Bull of the Day is one of those stocks with a very strong earnings trend. I’m talking about Zacks Rank #1 (Strong Buy) stock Douglas Dynamics (PLOW). Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy-duty trucks, as well as various related parts and accessories. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. This segment offers snow and ice management attachments under the BLIZZARD, FISHER, HENDERSON, SNOWEX, and WESTERN brand names; turf care equipment under the TURFEX brand; and industrial maintenance equipment under the SWEEPEX brand name.

Douglas Dynamics, Inc. Price and Consensus

Douglas Dynamics, Inc. Price and Consensus

Douglas Dynamics, Inc. price-consensus-chart | Douglas Dynamics, Inc. Quote

This is a cyclical name with the busy season obviously being the winter. So why then would you want to buy a snow plow company in the summer? The Zacks Rank has a lot to do with it. Recently, analysts have increased their earnings estimates for the current quarter and the current year. That bullish sentiment has pushed up our Zacks Consensus Estimate for the current quarter from 43 cents to 52 cents while the current year estimate has surged from $2.12 to $2.28. That would represent year-over-year EPS growth of 11.76% for the current year. This quarter’s year-over-year growth number would come in at 18.18%. That’s on revenue growth of 5.5% for the year and 7.9% for the quarter.

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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.

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