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Lindsay Corporation (LNN - Free Report) , a Zacks Rank #1 (Strong Buy), is well-positioned to continue benefitting from higher agricultural commodity prices and improving farm income. The stock has recently broken out to 52-week highs while the general market remains in a deep correction. Only stocks that are in extremely powerful uptrends are able to weather bear markets so gracefully. The company’s longevity and continued stock price ascent speak to management’s ability to adapt to the ever-changing market landscape.
LNN is part of the Zacks Manufacturing – Farm Equipment industry, which is currently ranked in the top 37% of all Zacks Ranked Industries. This group has widely outperformed the market this year with a nearly 10% return year-to-date. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market.
Quantitative research studies have shown that roughly half of a stock's price movement can be attributed to its industry group. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Also note the favorable characteristics for this industry group:
Image Source: Zacks Investment Research
Company Description
Lindsay Corp. provides water management and road infrastructure services and products globally. Its Irrigation segment manufactures and markets irrigations systems, chemical injection systems, soil moisture sensors, remote monitoring applications, and global positioning system (GPS) guidance. Lindsay is benefitting from increased selling prices and higher unit sales volumes in most international irrigation markets.
The company’s Infrastructure segment provides moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, and tunnel and bridge repairs. This segment is also benefitting from higher sales of road safety products and project revenues.
LNN serves departments of transportation, municipal transportation road agencies, roadway contractors, distributors, and dealers. Lindsay Corp. was founded in 1954 and is based in Omaha, NE.
Earnings Trends and Future Estimates
LNN has exceeded earnings estimates in each of the past four quarters, sporting a 25.57% average beat over this time frame. The company most recently announced fiscal Q3 earnings back in June of $2.28/share, a 45.22% beat over the $1.57 consensus estimate. Earnings in 2022 are expected to grow 44.07% year-over-year to $5.95/share, with sales increasing 34.68% to $764.5 million. The growth trends are expected to continue into 2023.
Image Source: Zacks Investment Research
Analysts are in agreement in terms of earnings revisions and have raised estimates across the board. For the current quarter, estimates have been raised 110.26% in the past 60 days. The fiscal Q4 Zacks Consensus EPS Estimate now stands at $1.64/share, reflecting potential growth of 74.5% relative to the same quarter in the prior year.
Image Source: Zacks Investment Research
Charting the Course
LNN shares have advanced nearly 8% on the year, all while the major indices continue to hover in a deep correction. The stock hit a 52-week high just a few days ago. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Image Source: StockCharts
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Lindsay Corp. has recently witnessed positive revisions. As long as this trend remains intact (and LNN continues to deliver earnings beats), the stock will likely continue its bullish run this year. With both strong fundamentals and technicals, LNN is poised to continue its dominance.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it’s not difficult to see why this company is a compelling investment. Solid institutional buying should continue to provide a tailwind for the stock price.
A strong technical trend along with recent positive earnings estimate revisions should also serve to create a ‘floor’ regarding any sudden or unexpected downside moves. If you haven’t already done so, make sure to put LNN on your shortlist.
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Bull of the Day: Lindsay Corp. (LNN)
Lindsay Corporation (LNN - Free Report) , a Zacks Rank #1 (Strong Buy), is well-positioned to continue benefitting from higher agricultural commodity prices and improving farm income. The stock has recently broken out to 52-week highs while the general market remains in a deep correction. Only stocks that are in extremely powerful uptrends are able to weather bear markets so gracefully. The company’s longevity and continued stock price ascent speak to management’s ability to adapt to the ever-changing market landscape.
LNN is part of the Zacks Manufacturing – Farm Equipment industry, which is currently ranked in the top 37% of all Zacks Ranked Industries. This group has widely outperformed the market this year with a nearly 10% return year-to-date. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market.
Quantitative research studies have shown that roughly half of a stock's price movement can be attributed to its industry group. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Also note the favorable characteristics for this industry group:
Image Source: Zacks Investment Research
Company Description
Lindsay Corp. provides water management and road infrastructure services and products globally. Its Irrigation segment manufactures and markets irrigations systems, chemical injection systems, soil moisture sensors, remote monitoring applications, and global positioning system (GPS) guidance. Lindsay is benefitting from increased selling prices and higher unit sales volumes in most international irrigation markets.
The company’s Infrastructure segment provides moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, and tunnel and bridge repairs. This segment is also benefitting from higher sales of road safety products and project revenues.
LNN serves departments of transportation, municipal transportation road agencies, roadway contractors, distributors, and dealers. Lindsay Corp. was founded in 1954 and is based in Omaha, NE.
Earnings Trends and Future Estimates
LNN has exceeded earnings estimates in each of the past four quarters, sporting a 25.57% average beat over this time frame. The company most recently announced fiscal Q3 earnings back in June of $2.28/share, a 45.22% beat over the $1.57 consensus estimate. Earnings in 2022 are expected to grow 44.07% year-over-year to $5.95/share, with sales increasing 34.68% to $764.5 million. The growth trends are expected to continue into 2023.
Image Source: Zacks Investment Research
Analysts are in agreement in terms of earnings revisions and have raised estimates across the board. For the current quarter, estimates have been raised 110.26% in the past 60 days. The fiscal Q4 Zacks Consensus EPS Estimate now stands at $1.64/share, reflecting potential growth of 74.5% relative to the same quarter in the prior year.
Image Source: Zacks Investment Research
Charting the Course
LNN shares have advanced nearly 8% on the year, all while the major indices continue to hover in a deep correction. The stock hit a 52-week high just a few days ago. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Image Source: StockCharts
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Lindsay Corp. has recently witnessed positive revisions. As long as this trend remains intact (and LNN continues to deliver earnings beats), the stock will likely continue its bullish run this year. With both strong fundamentals and technicals, LNN is poised to continue its dominance.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it’s not difficult to see why this company is a compelling investment. Solid institutional buying should continue to provide a tailwind for the stock price.
A strong technical trend along with recent positive earnings estimate revisions should also serve to create a ‘floor’ regarding any sudden or unexpected downside moves. If you haven’t already done so, make sure to put LNN on your shortlist.