Bull Of The Day: CECO Environmental (CECO)
CECO Environmental (CECO) is a Zacks Rank #1 (Strong Buy) and it sports a C for Value and a A for Growth. This company helps protect people from industrial exposures and that in turn, helps keep the environment safe. This stock has bucked the system, seeing a dramatic run since May while the broader market tumbled. Let’s explore more about this company in this Bull of The Day article.
Description
CECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide. It operates in two segments: Engineered Systems Segment and Industrial Process Solutions Segment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producer companies. CECO Environmental Corp. was incorporated in 1966 and is headquartered in Dallas, Texas.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For CECO, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 62%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for CECO.
This quarter has moved up from $0.17 to $0.20.
The full fiscal year 2022 has increased from $0.63 to $0.73.
Next fiscal year has seen the estimate move from $0.77 to $0.92.
Positive movement in earnings help move this stock to a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is low even with the solid growth. I see a forward PE of 16x which is a little low given the company is coming off a quarter that saw topline growth of more than 35%. The price to book multiple is 2x. Price to sales comes in a 1x while the stock carries operating margins of roughly 4%.
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CECO Environmental Corp. (CECO) : Free Stock Analysis Report
