Trade-Ideas: Manitowoc (MTW) Is Today's Post-Market Leader Stock

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 Manitowoc ( MTW) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Manitowoc as such a stock due to the following factors:

  • MTW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.6 million.
  • MTW is up 2.2% today from today's close.

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More details on MTW:

The Manitowoc Company, Inc. designs, manufactures, and sells cranes and related products, and foodservice equipment worldwide. It operates in two segments, Cranes and Related Products, and Foodservice Equipment. The stock currently has a dividend yield of 0.4%. MTW has a PE ratio of 18.9. Currently there are 5 analysts that rate Manitowoc a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Manitowoc has been 2.8 million shares per day over the past 30 days. Manitowoc has a market cap of $2.7 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.53 and a short float of 8.6% with 3.61 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Friday.

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 Manitowoc as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • MANITOWOC CO has improved earnings per share by 38.5% 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, MANITOWOC CO increased its bottom line by earning $1.13 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus $1.13).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 38.2% when compared to the same quarter one year prior, rising from $52.90 million to $73.10 million.
  • MTW, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, MANITOWOC CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The gross profit margin for MANITOWOC CO is currently lower than what is desirable, coming in at 26.67%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.41% trails that of the industry average.

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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