Great news from the folks over at Lincoln Electric as their stock soars a whopping 54% in just a year. That’s 16% higher than the industry average. Funny how they’re soaring higher than an eagle in a sky full of pigeons. Their industrial products sector has also seen a 14.1% rise, beating the Zacks S&P 500 composite which moved up 24% in the same time frame.
The company boasts a market capitalization of $12.4 billion and has seen an average volume of shares traded at 315.2k in the last three months.
Lincoln Electric currently holds a Zacks Rank #3 (Hold).
Steady Orders Pave the Way
Over the past 11 quarters, Lincoln Electric has been showing consistent year-over-year improvements in both its top and bottom lines. This is especially remarkable amidst the industry’s inflationary headwinds and supply-chain issues. The company is seeing a surge in order rates across all end-market sectors, regions and products. Strong quoting activity and record backlogs for equipment systems and automation solutions are further boosting their success.
Bright Projections for Growth
The Zacks Consensus Estimate for the company’s fiscal 2023 earnings per share currently stands at $9.17, suggesting a year-over-year growth of 11%. In 2024, it’s expected to climb to $9.55, indicating a 4% year-over-year growth. The company has a long-term estimated earnings growth rate of 15%.
Eye on Innovation
Lincoln Electric’s focus on product development and using digital platforms to engage with customers is paying off. They’re also venturing into the automation solutions market, proving there’s gold in them thar hills. Their new additive services business could position them as a manufacturer of large-scale 3D-printed metal spell parts, prototypes and tooling for industrial customers. A real game-changer if you ask me!
Successful Acquisitions
With several value-adding acquisitions under their belt, the company is riding a wave of prosperity. Each strategic acquisition, from Zeman Group’s unit to Shoals, aids its Higher Standard 2025 Strategy. Not to mention its expanding geographic and channel reach in promising areas such as automation. Lincoln Electric is clearly on the up and up.
Rock-Solid Balance Sheet
The company’s cash flow from operations has hit a record high, and Lincoln Electric is returning cash to shareholders while keeping the growth momentum rolling. The times interest earned ratio is at 15.1 as of September 30, 2023. This level of fiscal responsibility could make Scrooge McDuck envious, don’t you think?
The Road Ahead
While facing some headwinds in the form of inflationary pressures and weak demand in certain segments, Lincoln Electric seems poised to navigate these challenges and emerge as a leader. Besides, as the saying goes, every rose has its thorn. Furthermore, the company’s strategic focus and strong balance sheet might just be the secret sauce to cook up something really special.
Promising Stocks to Watch
Lest we forget to mention, there are other potential winners in the Industrial Products sector such as Crane Company, Applied Industrial Technologies, and A. O. Smith Corporation. These stocks are ones to keep your hawk-eyed attention on.
The Zacks Naming Top 10 Stocks for 2024
If you want to grab early bird tickets for the 2024 top 10 stock picks, don’t be sleeping at the wheel! From 2012 till date, Zacks Top 10 Stocks gained a whopping 974.1%, nearly tripling the S&P 500’s +340.1%. With such a stellar track record, to miss out now would be a bit like leaving the savory filling out of a pie! Mark your calendars for January 2; this could be the financial equivalent of Christmas Day.
