Zacks Investment Research upgraded Luxfer Holdings PLCLXFR to a Zacks Rank #1 (Strong Buy) on Jun 2, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market over the next few quarters.
Why the Upgrade?
Market sentiments have been favoring Luxfer Holdings PLC. This is evident from a 6.4% rise in the company's share price since the release of first-quarter 2016 results on May 9. The company's earnings of 28 cents per America Depository Shares ("ADS") beat the Zacks Consensus Estimate of 27 cents by 3.7%.
Luxfer Holdings PLC's top-line performance was weak in the quarter. Revenues declined 6.9% year over year. However, margin profile improved in the quarter, evident from a 220 basis points increase in adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin. For 2016, the company anticipates a 5% to 10% improvement in adjusted EBITDA and adjusted earnings per ADS.
Impressive first-quarter results as well as future outlook have boosted investors' optimism regarding Luxfer Holdings PLC's prospects. Over the last 30 days, the Zacks Consensus Estimate for the stock has increased 2.6% to $1.20 per ADS for 2016 and 0.8% to $1.29 per ADS for 2017.
Other Stocks to Consider
Luxfer Holdings PLC currently has a market capitalization of approximately $347 million. Some similarly-ranked stocks in the machinery industry include Gorman-Rupp Co. GRC , Kadant Inc. KAI and Nordson Corporation NDSN .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.