Markets

Meritor to Supply Drivetrain Products for Manitowoc's Cranes

Stock prices increasing and decreasing in value
Credit: Shutterstock photo

Meritor, Inc.MTOR entered a strategic supply agreement with The Manitowoc Company, Inc. to provide drivetrain products. Manitowoc, a leading provider of cranes and lifting solutions, will use Meritor's drivetrain products and solutions - including planetary axles - to manufacture its numerous crane types.

The new agreement of supplying planetary axles to Manitowoc positions Meritor in a favorable spot with the strengthening of the mobile crane market. Using Meritor's wide range of drivetrain products and solutions for the production of cranes under the Manitowoc's Grove brand will assist Meritor to expand in the off-highway market, which is in sync with its M2019 plan.

Meritor has been making investments to expand product portfolio and off-highway business, and win new businesses globally. It has been investing in the off-highway unit to increase product capability and applications, along with the development of customer-driven planetary products and solutions to access new markets.

Meritor, Inc. Price and Consensus

Meritor, Inc. Price and Consensus | Meritor, Inc. Quote

The company is witnessing higher production across all the major markets, leading to increased revenues. Increased market share and new business wins aided Meritor to generate revenues of $4.2 billion in fiscal 2018, marking 25% rise from the prior fiscal year.

Further, the company expects a similar growth trend to continue in fiscal 2019, owing to rising productions. This impelled Meritor to project sales of approximately $4.25 billion for the current fiscal.

Price Performance

Over the past six months, Meritor's stock has lost 22.4%, outperforming 35.1% decrease recorded by the industry it belongs to.

Zacks Rank & Key Picks

Meritor currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF , Cooper Tire & Rubber Company CTB , and Tesla, Inc. TSLA . Fox Factory and Cooper Tire currently carry a Zacks Rank #2 (Buy) while Tesla sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 53.4% over the past six months.

Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have rallied 14.7% over the past six months.

Tesla has an expected long-term growth rate of 35%. Over the past six months, shares of the company have gained 6.4%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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

Tesla, Inc. (TSLA): Free Stock Analysis Report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

Meritor, Inc. (MTOR): Free Stock Analysis Report

Cooper Tire & Rubber Company (CTB): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.

In This Story

MTOR TSLA FOXF

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More