NEW YORK (TheStreet) -- Manitowoc (MTW) -- which has been one of the top performers in the U.S. machinery space this year -- had a rough day finishing down 5.2% on the news that Jeffries had downgraded the stock.
The Wisconsin-based manufacturer has had steady success, rising 33% this year. However, Jefferies downgraded the stock due to an inflated valuation.
Manitowoc finished the day at $30.86 and continues its slide in aftermarket trading, down another 0.13%.
Separately, TheStreet Ratings team rates MANITOWOC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MANITOWOC CO (MTW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, MTW's share price has jumped by 50.35%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- 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, MANITOWOC CO's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $270.50 million or 15.99% when compared to the same quarter last year. Despite an increase in cash flow, MANITOWOC CO's cash flow growth rate is still lower than the industry average growth rate of 27.15%.
- MANITOWOC CO's earnings per share declined by 30.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MANITOWOC CO increased its bottom line by earning $1.14 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $1.14).
- Despite the weak revenue results, MTW has outperformed against the industry average of 17.1%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: MTW Ratings Report