Here's Why You Should Add L.B. Foster (FSTR) to Your Portfolio
L.B. Foster Company FSTR has experienced a 31% increase in its stock value in a month, primarily driven by its second-quarter performance that exceeded expectations.
The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #2 (Buy).
L.B. Foster Company Price and Consensus
L.B. Foster Company price-consensus-chart | L.B. Foster Company Quote
Positive Earnings Surprise History
FSTR has outperformed the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter average earnings surprise of 134.5%.
Healthy Growth Potential
The Zacks Consensus Estimate for 2023 earnings is currently pegged at 53 cents, implying year-over-year growth of 112.5%. Moreover, earnings are expected to register 117% growth in 2024.
An Outperformer
Shares of FSTR are up 93.7% year to date compared with the industry’s rise of 27.6% in the same period.
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Strong Q2 Performance and Upbeat Outlook
In the second quarter of 2023, FSTR surpassed expectations for earnings and revenues. Earnings per share climbed to 32 cents from the prior year's 18 cents and topped the Zacks Consensus Estimate of 28 cents. Revenues jumped 12.5% year over year, reaching $148 million. It beat the Zacks Consensus Estimate of $140.7 million. New orders were $183.7 million in the second quarter, up around 30% year over year.
The company attributes its performance to higher demand for its offerings, increased pricing, favorable mix and transformation actions. This success prompted FSTR to revise its 2023 financial outlook. It now anticipates adjusted EBITDA to range from $28 million to $32 million, up from the earlier guidance of $27 million to $31 million.
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS and Hawkins, Inc. HWKN, both sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. PPG, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for CRS’s current year is pegged at $3.48, indicating year-over-year growth of 205.3%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 50.7% in the past year.
The consensus estimate for HWKN's current year is pegged at $3.4, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 28.2% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 3.5% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 4.6% in the past year.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
L.B. Foster Company (FSTR) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
