Chart Industries, Inc. GTLS can be a good investment option in the manufacturing industries. The company has strong fundamentals and growth prospects. Its earnings estimates too have been revised upward, reflecting bullish sentiments for the stock.
The company is based in Ball Ground, GA, and has a market capitalization of $1.7 billion. It belongs to the Zacks Manufacturing – General Industrial industry, which is part of the broader Zacks Industrial Products sector.
The company presently has a Zacks Rank #2 (Buy).
Below we have discussed why it is worth investing in Chart Industries.
Multiple Top-Line Tailwinds: Though the pandemic-led woes remain, Chart Industries’ well-diversified business structure might prove beneficial in the quarters ahead. It is engaged in providing critical engineered equipment, air cooled heat exchangers and other products. Also, it has exposure in Asia, the Middle East, Europe, Latin America and the United States.
The company seems well-poised to benefit from solid orders in the second quarter of 2020. Notably, orders from 67 new customers were booked in April and May. Also, it received a contract for the supply of LNG equipment from Risco Energy Solutions. Further, Chart Industries completed its field service and repair contract with an industrial client.
Other Tailwinds: The company’s healthy supply chain and focus on driving operational excellence are boons. Also, its cost-reduction measures in the present difficult environment will likely help it deal with the pandemic-related financial stress. Notably, its cost-savings amounted to $60.7 million (annualized) from the start of 2020 till May 29.
Also, the company’s net cash generated from operating activities of $15.5 million in April 2020 is reflective of healthy cash generation and earnings. Also, the extension of supplier terms is added boon.
Buyouts: The company believes in gaining market share, enhancing product lines and boosting growth opportunities through acquisitions. One of the most important buyouts for Chart Industries was that of Air-X-Changers (“AXC”) in July 2019.
In first-quarter 2020, the AXC buyout substantially boosted sales of Chart Industries’ E&C FinFans segment. Notably, the segment’s sales (excluding the impact of the AXC buyout) marked a year-over-year decline of $24.7 million.
Share Price Performance & Earnings Estimates Trend: Market sentiments have been positive for Chart Industries for quite some time now. The company’s shares have surged 75% in the past three months compared with the industry’s 15.9% growth.
Also, the company’s earnings estimates have been revised upward in the past 60 days. Currently, the Zacks Consensus Estimate for its earnings is pegged at 45 cents for the second quarter of 2020, up 4.7% from the 60-day-ago figures.
In addition, the consensus estimate for 2020 has been increased by 3.6% to $2.58 in the past 60 days, while that for 2021 has been raised by 4% to $3.35.
Chart Industries, Inc. Price and Consensus
Chart Industries, Inc. price-consensus-chart | Chart Industries, Inc. Quote
Other Key Picks
Three other top-ranked stocks in the industry are Applied Industrial Technologies, Inc. AIT, Manitex International, Inc. MNTX and Altra Industrial Motion Corp. AIMC. While Applied Industrial and Manitex sport a Zacks Rank #1 (Strong Buy), Altra Industrial carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for Applied Industrial and Altra Industrial have improved for the current year, while the same remained stable for Manitex. Further, positive earnings surprise for the last reported quarter was 2.00% for Applied Industrial, 500.00% for Manitex and 47.73% for Altra Industrial.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Chart Industries, Inc. (GTLS) : Free Stock Analysis Report
Manitex International, Inc. (MNTX) : Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research