We are upbeat about TriMas Corporation 's TRS prospects and believe that it is a promising pick right now. The company remains well poised for growth on the back of robust end-market demand, focus on improving cost structure, and a strong pipeline of both product and process innovation.
The company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum. Such a score allows you to eliminate the negative aspects of stocks and select winners. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
You can see the complete list of today's Zacks #1 Rank stocks here .
Let's take a look at other factors that make this diversified global designer, manufacturer, and distributor of engineered and applied products an attractive bet.
An Outperformer: Shares of TriMas have appreciated around 1.4% over the past year against the industry 's decline of 38.1%.
Positive Earnings Surprise History: The company surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 3.37%.
Northbound Estimates: A positive trend in estimate revisions reflects optimism over the company's prospects. Over the past nine days, the Zacks Consensus Estimate for earnings for both fiscal 2018 and 2019 has moved up 1%. The Zacks Consensus Estimate for earnings for fiscal 2018 is pegged at $1.74, projecting year-over-year growth of 24%. For fiscal 2019, the Zacks Consensus Estimate is anticipated to increase 7% to $1.876 per share.
Robust Markets to Drive Results: TriMas' organic sales growth guidance for 2018 is at around 6% year over year. It pegs earnings per share of $1.72-$1.78, the mid-point of which reflects a year-over-year increase of approximately 25%. Robust end-market demand, focus on improving its cost structure, impact of tax reform and momentum in its segments are likely to drive results.
General industrial activity levels have improved, particularly in the United States. This bodes well for TriMas. The company is well positioned to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales growth programs. It is also focusing on improving its cost structure. Further, TriMas is likely to benefit from the recently implemented tax reform.
Long-Term Growth Drivers in Place: The company will continue to focus on leveraging the TriMas Business Model to drive performance, which will fuel long-term growth. Its innovative solutions through product, process or service, as well as extensive resources, will help enhance business performance. The company also has a strong pipeline of both product and process innovation that will sustain long-term growth. Consequently, this positions it well to capitalize on market opportunities and minimize market disruptions. The stock has an estimated long-term earnings growth rate of 5%.
Other Stocks to Consider
CECO has a long-term earnings growth rate of 15%. The company's shares have surged 44% in the past year.
DMC Global has a long-term earnings growth rate of 20%. Its shares have increased 57% in the past year.
Northwest Pipe has a long-term earnings growth rate of 10%. Its shares have gained 26% in the past year.
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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.