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.
TriMas (TRS) Looks a Solid Bet: Add to Your Portfolio Now
Read MoreHide Full Article
TriMas Corporation (TRS - Free Report) continues to benefit from upbeat outlook, improving manufacturing footprint and stable order patterns. Further, the company’s long-term earnings growth rate of 5% makes us confident of its inherent strength. Let’s delve deeper and find out what’s fueling this stock.
Growth Drivers
TriMas delivered third-quarter 2017 adjusted earnings per share of 39 cents, up 11.4% year over year. Also, its sales increased 3.5% year over year in the quarter. The company will continue to focus on leveraging the TriMas Business Model to drive performance. Notably, TriMas has been working diligently to mitigate near-term issues impacting its businesses. It updated its full-year earnings per share outlook to the range of $1.37-$1.43. The company also projects 2017 sales to be up 2-4% compared to the year-ago level.
Meanwhile, the company remains committed to exploring actions to improve manufacturing footprint and strategies to drive long-term success. It recently closed the sale of its Mexico City facility. Following relocation to a new facility in San Miguel, TriMas immediately began marketing the old facility to secure a solid disposition. TriMas is also in the process of exiting a location in Tulsa to reduce 2018 infrastructure costs in the Arrow Engine business.
The company continues to record more stable order patterns from customers in the Aerospace segment and is optimistic that a more consistent demand level will result in further opportunities for improved manufacturing efficiencies. In its Packaging segment, TriMas continues to invest in new products and remains focused on sales initiatives to drive sustainable, long-term growth.
Other factors that make TriMas a favorable investment option include:
Solid Zacks Rank, Score Combination
TriMas sports a Zacks Rank #1 (Strong Buy). It has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum. The company’s score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. In fact, our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), make solid investment choices.
Price Performance
TriMas’ shares have outperformed the industry in the past year. The stock has gained 27.3% compared to 17.1% growth recorded by the industry.
Return on Assets (ROA)
TriMas currently has a ROA of 6%, while the industry's ROA is 3.6%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Stock Seems Undervalued
TriMas has a trailing 12-month price earnings (P/E) ratio of 19.8, lower than the industry’s average trailing 12-month P/E ratio of 24.8. Based on this, the stock seems undervalued.
SKF has a long-term earnings growth rate of 14%. Its shares have rallied 24.6%, over the past six months.
Timken has a long-term earnings growth rate of 11.6%. The company’s shares have been up 13.6% during the same time frame.
Worthington Industries has a long-term earnings growth rate of 4.2%. The stock has gained 25.8% in six months’ time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
TriMas (TRS) Looks a Solid Bet: Add to Your Portfolio Now
TriMas Corporation (TRS - Free Report) continues to benefit from upbeat outlook, improving manufacturing footprint and stable order patterns. Further, the company’s long-term earnings growth rate of 5% makes us confident of its inherent strength. Let’s delve deeper and find out what’s fueling this stock.
Growth Drivers
TriMas delivered third-quarter 2017 adjusted earnings per share of 39 cents, up 11.4% year over year. Also, its sales increased 3.5% year over year in the quarter. The company will continue to focus on leveraging the TriMas Business Model to drive performance. Notably, TriMas has been working diligently to mitigate near-term issues impacting its businesses. It updated its full-year earnings per share outlook to the range of $1.37-$1.43. The company also projects 2017 sales to be up 2-4% compared to the year-ago level.
Meanwhile, the company remains committed to exploring actions to improve manufacturing footprint and strategies to drive long-term success. It recently closed the sale of its Mexico City facility. Following relocation to a new facility in San Miguel, TriMas immediately began marketing the old facility to secure a solid disposition. TriMas is also in the process of exiting a location in Tulsa to reduce 2018 infrastructure costs in the Arrow Engine business.
The company continues to record more stable order patterns from customers in the Aerospace segment and is optimistic that a more consistent demand level will result in further opportunities for improved manufacturing efficiencies. In its Packaging segment, TriMas continues to invest in new products and remains focused on sales initiatives to drive sustainable, long-term growth.
Other factors that make TriMas a favorable investment option include:
Solid Zacks Rank, Score Combination
TriMas sports a Zacks Rank #1 (Strong Buy). It has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum. The company’s score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. In fact, our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), make solid investment choices.
Price Performance
TriMas’ shares have outperformed the industry in the past year. The stock has gained 27.3% compared to 17.1% growth recorded by the industry.
Return on Assets (ROA)
TriMas currently has a ROA of 6%, while the industry's ROA is 3.6%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Stock Seems Undervalued
TriMas has a trailing 12-month price earnings (P/E) ratio of 19.8, lower than the industry’s average trailing 12-month P/E ratio of 24.8. Based on this, the stock seems undervalued.
Other Stocks to Consider
Some other top-ranked stocks in the sector include SKF AB (SKFRY - Free Report) , The Timken Company (TKR - Free Report) and Worthington Industries, Inc. (WOR - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SKF has a long-term earnings growth rate of 14%. Its shares have rallied 24.6%, over the past six months.
Timken has a long-term earnings growth rate of 11.6%. The company’s shares have been up 13.6% during the same time frame.
Worthington Industries has a long-term earnings growth rate of 4.2%. The stock has gained 25.8% in six months’ time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>