Lincoln Electric Holdings (LECO) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Lincoln Electric Holdings ( LECO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Lincoln Electric Holdings as such a stock due to the following factors:

  • LECO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.0 million.
  • LECO has traded 636,126 shares today.
  • LECO is trading at a new lifetime high.

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More details on LECO:

Lincoln Electric Holdings, Inc., through its subsidiaries, engages in the design, manufacture, and sale of welding, cutting, and brazing products worldwide. The stock currently has a dividend yield of 1.2%. LECO has a PE ratio of 21.1. Currently there is 1 analyst that rates Lincoln Electric Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Lincoln Electric Holdings has been 347,100 shares per day over the past 30 days. Lincoln Electric has a market cap of $5.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.07 and a short float of 1.1% with 1.50 days to cover. Shares are up 38% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lincoln Electric Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 75.04% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LECO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LINCOLN ELECTRIC HLDGS INC has improved earnings per share by 10.1% 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 two years. We feel that this trend should continue. During the past fiscal year, LINCOLN ELECTRIC HLDGS INC increased its bottom line by earning $3.06 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $3.06).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income increased by 9.5% when compared to the same quarter one year prior, going from $66.32 million to $72.61 million.
  • LECO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, LINCOLN ELECTRIC HLDGS INC's return on equity exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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