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Raven Industries Down to Strong Sell - Analyst Blog

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On January 4, Zacks Investment Research downgraded Raven Industries Inc. ( RAVN) to a Zacks #5 Rank (Strong Sell).

Why the Downgrade?

Raven Industries has witnessed sharp downward estimate revisions and hit its 52-week low after reporting disappointing results for third-quarter 2012 on November 20. Shares of this industrial manufacturer of products for the agricultural, industrial, construction and military/aerospace markets have dipped to the $20 range since August (post-second quarter results) from the prior $30 range.

Raven's third-quarter earnings per share of 30 cents missed the Zacks Consensus Estimate of 34 cents. On a year-over-year basis, earnings dipped 3%.

Raven's Aerostar will continue to be impacted by a lack of aerostat orders and the Engineered Films segment will also likely face a challenging environment and tough year-over-year comparison. Furthermore, given the company's performance so far in 2012 and expectations of a difficult fourth-quarter, the long-term earnings growth target of 10-15% seems unlikely in the current year.

The Zacks Consensus Estimate for 2012 decreased 4% to $1.45 per share over the last 60 days. For 2013, the estimate was revised downward over the last 60 days, sinking the Zacks Consensus Estimate by 5% to $1.60 per share.

Other Stocks to Consider

Among the other stocks in the same industry, Carlisle Companies Incorporated ( CSL ) holds a Zacks #2 Rank (Buy) and is a favorable option for investors.

CARLISLE COS IN (CSL): Free Stock Analysis Report

RAVEN INDS INC (RAVN): 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.

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