TriMas Corporation TRS remains well poised for growth on the back of robust end-market demand, focus on improving cost structure and strong pipeline of both product and process innovation. Also, focus on leveraging its TriMas Business Model will fuel growth.
Currently, this maker of engineered and applied products, with a market capitalization of approximately $1.41 billion, carries a Zacks Rank #3 (Hold). Here's why investors should hold on to the stock at present.
What’s Working in Favor of TriMas?
An Outperformer: Shares of TriMas have appreciated around 19% over the past year, against the industry’s decline of 31%.
Value Growth Momentum (VGM) Score: The company currently has a VGM score of B. Here V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. The VGM Score of A, along with some other key metrics, makes the company a solid choice for investors.
Positive Earnings Surprise History: The company surpassed the Zacks Consensus Estimate in three of the last four quarters, with average beat of 5.53%.
Positive Growth Projections: For 2019, the Zacks Consensus Estimate is currently pegged at $1.88, reflecting year-over-year growth of 6%. The estimate for 2020 is $2.00, projecting year-over-year growth of 6.8%.
Upbeat 2018 Guidance: Backed by continued growth across all markets, the company anticipates organic sales growth of 3-5% in the ongoing year. Adjusted earnings per share in 2019 are expected to lie between $1.82 and $1.92. The mid-point of the guidance reflects year-over-year increase of approximately 7%. Continued growth is expected across markets. In the current year, the company will continue to focus on the TriMas Business Model in order to better position its businesses to drive growth via innovation, and capitalize on market opportunities through manufacturing efficacy.
General industrial activity levels have improved, particularly in the United States, and this bodes well for TriMas. The company is well poised to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales-growth programs. The company has refocused certain commercial efforts, including realigning and enhancing sales functions, and improvement of cost structure.
Long-Term Growth Drivers in Place: TriMas will continue to focus on leveraging the TriMas Business Model, which was implemented in late 2016 to improve management and performance of its businesses. Its innovative solutions through product, process or service, as well as extensive resources, will help enhance business performance. The company will benefit from connectivity, resource sharing, capitalization and planning.
The company also has a strong pipeline of both product and process innovation that will sustain long-term growth and position its businesses to take advantage of market opportunities, as well as minimize market disruption. The stock has an estimated long-term earnings growth rate of 5%.
Stocks to Consider
Some better-ranked stocks in the sector include iRobot Corporation IRBT, CECO Environmental Corp. CECE and Brady Corporation BRC. While iRobot sports a Zacks Rank #1 (Strong Buy), CECO Environmental and Brady Corporation carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
iRobot has an estimated long-term earnings growth rate of 7.50%. The stock has gained 75% over the past year.
CECO Environmental has an estimated long-term earnings growth rate of 15%. Shares of the company have rallied 42% in a year’s time.
Brady Corporation has an estimated long-term earnings growth rate of 20.50%. Its shares have gone up 23% over the past year.
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