Tim Brown: Manitowoc, the Comeback Kid - TheStreet

Tim Brown: Manitowoc, the Comeback Kid

The industrial company has been pummeled, but its solid balance sheet and earnings position it for a comeback.
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Everyone loves a comeback story.

That's because it gives hope to those who stumble that they can get right back up and that with perseverance and determination, they can regain lost glory. Every year, scores of football players try to come back from injuries, off-the-field problems, time away from the game or just plain underperformance.

Each year since 1972, with the exception of 1985, a National Football League Comeback Player of the Year has been crowned. The award is meant to recognize the player who shows the most perseverance in overcoming adversity.

Patriots linebacker Tedy Bruschi won the award in 2005 (he shared the award with Steve Smith of the Carolina Panthers).

In 2005, following the Pro Bowl in Hawaii, Bruschi, who suffered from a congenital heart defect, had a mild stroke. It looked like his playing days were done, or at the very least that he would face a long road back to the field if he even wanted to try. He was partially paralyzed and announced he would sit out the 2005 season.

However, in mid-October 2005 he was medically cleared to play and joined the team on the practice field just three days later. He was activated and played on Oct. 30 vs. the Buffalo Bills.

Some winners in the last few years include quarterback Jon Kitna (2003), quarterback Drew Brees (2004), quarterback Chad Pennington (2006) and linebacker Greg Ellis (2007).

For today's pick, I have a great company that I think is ready to write its own comeback story.

Manitowoc

(MTW) - Get Report

has a really solid balance sheet, recently released encouraging earnings and has gotten absolutely pummeled in the last year. It has all the makings of a comeback.

This company is known for its industrial cranes but is in other businesses too, such as ice machines and drink dispensers. Just a few days ago, Manitowoc said its earnings rose 37% in the second quarter. It crushed analysts' consensus estimate of 89 cents with earnings of 99 cents a share. The company also provided an encouraging forecast.

It said it expects full-year earnings to be $3.30 to $3.40 a share. The company had previously listed that range as $3.20 to $3.40. However, the rosy earnings release has not brought investors flocking back -- yet.

Investors have punished this company for its takeover of

Enodis

, but I think the reaction was unwarranted -- at least to this extreme.

The stock has fallen more than 40% this year and more than 30% in the last 12 months. It was recently trading near $27 a share. At this price, I love this stock.

Look at its balance sheet. It has a forward price-to-earnings of just about 6.9, a PEG ratio of 0.26, a return on investment of nearly 32% and revenue of $4 billion.

Its 52-week high is $51.49. That's a lot of ground to cover. Manitowoc doesn't need to get all the way back up there to make me some money. We should be able to chew up some yardage with this one.

Keep moving the chains.

At the time of publication, Brown had no positions in stocks mentioned, although positions may change at any time.

Tim Brown played 16 seasons in the NFL, where he made nine Pro Bowls. After a brief stint with the Tampa Bay Buccaneers in 2004, Brown retired as an Oakland Raider. He was a Heisman Trophy winner in college for Notre Dame.