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Haynes International Down to Strong Sell on Bleak Prospects

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Zacks Investment Research downgraded Haynes International, Inc.HAYN to a Zacks Rank #5 (Strong Sell) on Sep 26, 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 Haynes International, with its share price declining 15.1%, since the company reported third-quarter fiscal 2015 (ended Jun 2015) results on Aug 6. Year to date, the company has yielded a negative return of 24.1%. A brief snapshot of the quarterly results will justify the deterioration in the company's investment value.

Haynes International's earnings of 62 cents per share came in below the Zacks Consensus Estimate of 70 cents. Top-line results were weak, as sales declined 4% year over year, while backlog of $193 million was down 12.5% sequentially.

For the fourth quarter, Haynes International anticipates weak nickel prices to impact its product-selling prices as well as margins. In addition, unfavorable foreign currency movements and lower chemical processing activity will remain as prime concerns that might impact the quarterly results.

Over the last 60 days, the Zacks Consensus Estimate for Haynes International has decreased 8.4% to $2.72 per share for fiscal 2015 (ended Sep 2015) and 11.3% to $3.06 per share for fiscal 2016. Also, the earnings estimate has fallen 22% to 64 cents per share for the fourth quarter.

Stocks to Consider

Haynes International currently has a market capitalization of $451 million. Better-ranked stocks in the sector include Global Brass and Copper Holdings, Inc. BRSS , ArcelorMittal MT and ThyssenKrupp AG TYEKF . While Global Brass and Copper Holdings sports a Zacks Rank #1 (Strong Buy), both ArcelorMittal and ThyssenKrupp carry a Zacks Rank #2 (Buy).

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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

ARCELOR MITTAL (MT): Free Stock Analysis Report

HAYNES INTL INC (HAYN): Free Stock Analysis Report

GLOBAL B&C HLD (BRSS): Free Stock Analysis Report

THYSSEN A G (TYEKF): Free Stock Analysis Report

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Zacks Investment Research

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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