We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Altra Industrial (AIMC) Gains 17% in 3 Months: What's Driving It?
Read MoreHide Full Article
Shares of Altra Industrial Motion Corp. have increased notably in the past three months. Strengthening end-market demand, sound shareholder-friendly policies and increased projections seem to have boosted sentiments for the stock.
The Braintree, MA-based company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 28% (with a rank of 71) of more than 250 Zacks industries. Altra Industrial has a $4.1-billion market capitalization and it currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 16.6% compared with the industry’s growth of 5.4%. Notably, the S&P 500 has risen 9.5% and the sector has increased 1.8% during the same period.
Image Source: Zacks Investment Research
Factors Influencing the Stock
Altra Industrial reported impressive results for first-quarter 2021. Earnings in the quarter surpassed the Zacks Consensus Estimate by 13.16% and sales beat the same by 3.09%. On a year-over-year basis, the bottom line expanded 32.3% on the back of revenue and margin improvement.
Impressive performance and healthy growth opportunities seem to have favored the hike in the stock price. Notably, strengthening demand in end markets — especially in assembly equipment, general factory automation and robotics — and a well-diversified business structure might prove tailwinds for the company in the quarters ahead. Also, opportunities, stemming from the e-commerce platform, and improving technological capabilities might aid.
For 2021, Altra Industrial anticipates Non-GAAP earnings of $3.09-$3.24 per share, higher than $2.95-$3.15 mentioned previously. Revenues for the year are expected to be $1,820-$1,850 million, up from $1,790-$1,830 million stated earlier.
In addition, Altra Industrial’s healthy cash positions and its efforts to lower debts add to the company’s attractiveness. Notably, debts of $20 million were repaid in the first quarter, while available liquidity was $544 million exiting the quarter. Further, the company’s policy of rewarding shareholders through dividends impresses shareholders.
Currently, the Zacks Consensus Estimate for its earnings is pegged at $3.24 for 2021, marking an increase of 2.5% from the 60-day-ago figure. Also, the consensus estimate for the second quarter improved from 79 cents to 81 cents. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
Altra Industrial’s Performance Versus Industry Players
Altra Industrial’s performance in the past three months has been better than Tennant Company (TNC - Free Report) , Barnes Group, Inc. (B - Free Report) and EnPro Industries, Inc. (NPO - Free Report) . The companies belong to the same industry as Altra Industrial. In the past three months, Tennant’s shares have gained 1.6%, whereas that of Barnes and EnPro increased 5.3% and 14.4%, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Altra Industrial (AIMC) Gains 17% in 3 Months: What's Driving It?
Shares of Altra Industrial Motion Corp. have increased notably in the past three months. Strengthening end-market demand, sound shareholder-friendly policies and increased projections seem to have boosted sentiments for the stock.
The Braintree, MA-based company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 28% (with a rank of 71) of more than 250 Zacks industries. Altra Industrial has a $4.1-billion market capitalization and it currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 16.6% compared with the industry’s growth of 5.4%. Notably, the S&P 500 has risen 9.5% and the sector has increased 1.8% during the same period.
Image Source: Zacks Investment Research
Factors Influencing the Stock
Altra Industrial reported impressive results for first-quarter 2021. Earnings in the quarter surpassed the Zacks Consensus Estimate by 13.16% and sales beat the same by 3.09%. On a year-over-year basis, the bottom line expanded 32.3% on the back of revenue and margin improvement.
Impressive performance and healthy growth opportunities seem to have favored the hike in the stock price. Notably, strengthening demand in end markets — especially in assembly equipment, general factory automation and robotics — and a well-diversified business structure might prove tailwinds for the company in the quarters ahead. Also, opportunities, stemming from the e-commerce platform, and improving technological capabilities might aid.
For 2021, Altra Industrial anticipates Non-GAAP earnings of $3.09-$3.24 per share, higher than $2.95-$3.15 mentioned previously. Revenues for the year are expected to be $1,820-$1,850 million, up from $1,790-$1,830 million stated earlier.
In addition, Altra Industrial’s healthy cash positions and its efforts to lower debts add to the company’s attractiveness. Notably, debts of $20 million were repaid in the first quarter, while available liquidity was $544 million exiting the quarter. Further, the company’s policy of rewarding shareholders through dividends impresses shareholders.
Currently, the Zacks Consensus Estimate for its earnings is pegged at $3.24 for 2021, marking an increase of 2.5% from the 60-day-ago figure. Also, the consensus estimate for the second quarter improved from 79 cents to 81 cents. Such an upward revision in earnings estimates is reflective of healthy operating conditions for the company.
Altra Industrial Motion Corp. Price and Consensus
Altra Industrial Motion Corp. price-consensus-chart | Altra Industrial Motion Corp. Quote
Altra Industrial’s Performance Versus Industry Players
Altra Industrial’s performance in the past three months has been better than Tennant Company (TNC - Free Report) , Barnes Group, Inc. (B - Free Report) and EnPro Industries, Inc. (NPO - Free Report) . The companies belong to the same industry as Altra Industrial. In the past three months, Tennant’s shares have gained 1.6%, whereas that of Barnes and EnPro increased 5.3% and 14.4%, respectively.
Notably, Tennant currently sports a Zacks Rank #1 (Strong Buy), while both Barnes and EnPro carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>