Zacks Industry Outlook Highlights: Lincoln Electric Holdings, Actuant, Stanley Black & Decker, Kennametal and Caterpillar

News provided by

Sep 10, 2014, 09:30 ET

CHICAGO, Sept. 10, 2014 /PRNewswire/ -- Today, Zacks Equity Research discusses the Machinery, including Lincoln Electric Holdings Inc. (Nasdaq:LECO-Free Report), Actuant Corporation (NYSE:ATU-Free Report), Stanley Black & Decker, Inc. (NYSE:SWK-Free Report), Kennametal Inc. (NYSE:KMT-Free Report) and Caterpillar Inc. (NYSE:CAT-Free Report).

Industry: Machinery

Link: http://www.zacks.com/commentary/34309/machinery-industry-global-perspective-bright-outlook

Let's take a look at the sector's performance in second-quarter 2014. Nearly 96% of the total Industrial Products companies in the S&P 500 group reported their results as of Aug 28. Earnings grew 3% year over year with a beat ratio (percentage of companies coming out with positive surprises) of 54.2%. Revenues declined 1.6% with a beat ratio of just 25%.

With demand in domestic and international markets picking up, improvements are anticipated in the sector. For the industrial sector, earnings growth is predicted at 7.8% in 2014 and 10.3% in 2015, to be driven by margin improvements. Revenue growth is likely to be 4% in 2014 and 3.6% in 2015.

In view of all the Zacks sectors combined, total earnings growth rate is predicted at 8.3% for 2014 and 12% for 2015. Revenue is anticipated to grow by 1.9% in 2014 and 4.2% in 2015.

Important Players in the Machinery Industry

Lincoln Electric Holdings Inc. (Nasdaq:LECO-Free Report): With a market capitalization of $5.7 billion, the company operates in the machine tools and related products industry. It specializes in manufacturing and selling welding and cutting products. An active acquisition program and development in manufacturing platforms will prove advantageous for future growth of the company.

Some other companies worth mentioning in the industry include Actuant Corporation (NYSE:ATU-Free Report), Stanley Black & Decker, Inc. (NYSE:SWK-Free Report) and Kennametal Inc. (NYSE:KMT-Free Report).

Caterpillar Inc. (NYSE:CAT-Free Report): The company operates in the construction and mining machinery industry with a current market capitalization of $68.2 billion. It is one of the leading manufacturers of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is well positioned to benefit from the recovery in the U.S. construction sector. Also, growing export demand in the country will bode well for the company going forward. Over the next five years, earnings are anticipated to grow 10.2%.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on LECO- FREE

Get the full Report on ATU- FREE

Get the full Report on SWK- FREE

Get the full Report on KMT- FREE

Get the full Report on CAT- FREE

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.