Zacks Industry Rank Analysis Highlights: Kubota and Alamo Group

Zacks Equity Research

For Immediate Release

Chicago, IL – August 27, 2013 – Stocks featured in this week’s Zacks Industry Rank analysis include Kubota Corp - ADR (KUBTY-Free Report) and Alamo Group Inc. (ALG-Free Report).

Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist,

Just Add Water: Farm Equipment Sector Growing

More than crops are growing these days as the proficiency and proliferation of modern farming makes its way across the globe. To meet the demands of an ever-increasing population, private investment and public subsidies from governments, East to West, are giving a boost to the machines behind agricultural management.

In the last week, the Farm Equipment sector has gained 52 positions on the Zacks Industry Rank list. The 8 companies in this industry now rank #32 out of 260 industries. These businesses have recently seen 33 positive earnings estimate revisions compared to 7 negative revisions, averaging a positive Earnings per Share (EPS) surprise of +16%.

In addition to farming, some of these companies also supply industrial machinery for infrastructure maintenance (street sweepers, embankment mowers, snow plows). These are getting a boost from renewed government spending on public works projects.

Both of the following manufacturers have been upgraded this week to a Zacks Rank #1 (Strong Buy). An upgrade in rank from a Buy or Hold to a Strong Buy demonstrates that a given stock may be gaining value in response to future positive earnings estimate revisions. An understanding of wider industrial trends combined with in-depth company research can provide investors with enhanced perception of future value. Both of these companies have also seen sharp increases in consensus estimates recently, another positive indicator that a stock may be on track for growth.

And when it comes to managing growth, these companies have all the right tools.

Kubota Corp - ADR (KUBTY-Free Report)

KUBTY was upgraded to a Zacks Rank #1 (Strong Buy) last week from #2 (Buy). Its next expected earnings report is on November 1, 2013.

Kubota is the world's largest maker of small tractors and Japan's 2nd largest manufacturer of farm equipment. The company makes engines, construction machinery, industrial castings and machinery, waste recycling plants, prefab housing and pumps. Due to massive growth in overseas revenues (42%), partly from restored economic progress in China, their farming and industrial business is seeing substantial increases.

Alamo Group Inc. (ALG-Free Report)

ALG is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank #3 (Hold) just last week. This company reports quarterly earnings on November 5, 2013.

Alamo Group Inc. is a leading manufacturer of high quality equipment for right-of-way maintenance and agriculture. Their products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, agricultural implements and related after-market parts and services.  Strategic acquisitions of complementary companies have helped Alamo build organic growth by increasing cross-selling opportunities and market coverage while consolidating manufacturing.

ALG’s most recent earnings surprise was +27%.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to

Follow us on Twitter:

Join us on Facebook:

Visit for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Terry Ruffolo 

Phone: 312-265-9213


Read the analyst report on KUBTY

Read the analyst report on ALG

Zacks Investment Research

More From