What Makes Ituran (ITRN) an Attractive Pick Right Now
Ituran Location and Control Ltd. ITRN provides location-based services, consisting predominantly of stolen vehicle recovery and tracking services, as well as wireless communications products used in connection with its location-based services and various other applications. This Zacks Rank #2 (Buy) company has impressive prospects and should make a valuable addition to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s delve deeper into the other factors which make this stock a lucrative pick.
Notably, the attractiveness of this stock as a current investment choice is further underscored by its Growth Style Score 'B' and Momentum Style Score 'A'.
Stock Price Movement
Shares of Ituran have returned more than 19% year to date, comparing favorably with the Zacks classified Protection-Safety Equipment & Services industry’s gain of 7.8%. That said, we have noticed that Allegion has also outperformed the industry in 52-week time frame, giving the stock a Momentum Score of ‘A’.
Estimate Revisions
In the last 60 days, Ituran has witnessed an upward trend in earnings estimate revision for 2017 (up 3%). These positive earnings estimate revisions indicate analysts’ confidence in the stock and also add to the optimism.
Earnings & Revenue Growth
Ituran makes for a great pick in terms of growth investment. Arguably, nothing is more important than earnings growth as surging profit levels are often an indication of strong prospects.
Ituran’s 2017 EPS is projected to grow 32.7%, more than the industry’s average EPS growth of 8.5%. The company’s sales growth in 2017 is projected to be around 19.3%, comparing favorably with the industry’s 17.3% decrease.
For all of these factors, the company currently has a Growth Score of ‘B’ on our style score system that helps us identify potential outperformers.
Return on Equity
Ituran’s trailing 12-month return on equity (ROE) of 29.7% supports its growth potential. The industry’s ROE was 9.5%, testifying to the company’s efficient usage of shareholders’ funds.
Bottom Line
Ituran is a great choice given its incredible statistics from this perspective. Moreover, the company’s VGM Score of 'B' coupled with a Zacks Rank #2 makes it a solid investment choice.
Other Stocks to Consider
You can consider a few other favorably ranked stocks in the same space.
Allegion PLC ALLE is a Zack Rank #2 company. Its earnings are expected to grow 10.5% this year.
MSA Safety Incorporated MSA also carries a Zacks Rank #2. Its earnings surpassed estimates in three of the trailing four quarters, delivering an average positive surprise of 7.77%.
Net 1 UEPS Technologies, Inc. UEPS is another Zacks Rank #2 company whose earnings surpassed estimates in each of the trailing four quarters with an average positive surprise of 16.62%.
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