Rating Change #7
Actuant Corporation (ATU) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, robust revenue growth, attractive valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Net operating cash flow has increased to $74.80 million or 44.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 2.65%.
- ATU's revenue growth trails the industry average of 50.0%. Since the same quarter one year prior, revenues rose by 38.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ACTUANT CORP has improved earnings per share by 30.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ACTUANT CORP increased its bottom line by earning $0.98 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($1.58 versus $0.98).
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
Actuant Corporation manufactures industrial products and systems worldwide. Its Industrial segment involves in the design, manufacture, and distribution of hydraulic and mechanical tools to the maintenance, industrial, infrastructure, and production automation markets. The company has a P/E ratio of 17.2, above the average industrial industry P/E ratio of 16.8 and below the S&P 500 P/E ratio of 17.7. Actuant has a market cap of $1.6 billion and is part of the industrial goods sector and industrial industry. Shares are down 9.6% year to date as of the close of trading on Friday.You can view the full Actuant Ratings Report or get investment ideas from our investment research center.