U.S. Markets closed

Colfax Corp Hits a New 52-Week High

Zacks Equity Research

Shares of Colfax Corporation (CFX) touched a new 52-week high of $59.10 during its trading session on Nov 18. This is an increase over the previous high of $59.04 reached on Nov 14.  

Colfax Corporation closed the trading day on Nov 18 at $57.97, reflecting a solid year-to-date return of 38.1%. The trading volume for the session was 0.30 million shares. Further upside potential exists for this Zacks Rank #3 (Hold) manufacturing and engineering company, as can be deduced from its earnings growth rate of 36.5% for the next five years and earnings estimate revision for 2014.

Growth Drivers

Colfax Corporation’s results in the third quarter 2013 were impressive. Earnings per share in the quarter came in at 56 cents, up 69.7% over the year-ago quarter and three cents above the Zacks Consensus Estimate of 53 cents. Shares since the earnings release on Oct 24 have risen by 3.4%.

Revenue grew by 6.3% year over year on the back of 3.0% gains from existing businesses and 3.9% contribution from acquisitions, partially offset by 0.6% negative foreign currency translation impact. Total orders were up 20.2% year over year while backlog at the end of the quarter grew by 4.7%.

For 2013, management of Colfax Corporation anticipates adjusted earnings per share to be within $1.98-$2.03 range versus $1.95-$2.10 expected earlier. Revenue is expected to be within $4.12-$4.15 million range.

Also, Colfax Corporation had positive earnings surprises in all the trailing four quarters, with the average being 6.84%. For 2014, Colfax has an Earnings ESP of +0.79%.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Colfax Corporation has increased by 0.4% to $2.52 for 2014. This also represented an increase of 26.02% over the year-ago quarter.

Colfax Corporation currently has a market capitalization of $5.9 billion. Other stocks to watch out for in the industry are Xylem Inc. (XYL), with a Zacks Rank #1 (Strong Buy), and DXP Enterprises, Inc. (DXPE) and Flowserve Corp. (FLS), both of which carry a Zacks Rank #2 (Buy).

Read the Full Research Report on FLS
Read the Full Research Report on DXPE
Read the Full Research Report on XYL
Read the Full Research Report on CFX

Zacks Investment Research