Up about a third since the election and up more than 100% from its 52-week low, Drew Industries (NYSE:DW)
has received plenty of love this year. A lot of this attention is
deserved - the company has continued to deliver on its pledges to
improve content, leverage underlying market growth, and improve margins,
as well as continue to cautiously expand into adjacent markets.
Strong
performance expectations are built into Drew's share price today, but
there are still opportunities for growth. Management has shown that it
can identify and secure growth opportunities in its core market, and if
it can execute with similar skill in newer markets like buses, trucks,
and marine, Drew could be a substantially larger company and still offer
some upside. That said, there's a lot of risk in a story that's
predicated on repeating old success in new markets, and I'd prefer a
wider margin of safety.
Readers should also note
that Drew Industries has announced a name change. Starting in 2017, Drew
Industries will be known as "LCI Industries," with the symbol changing
to LCII.
Click this link for more:
Drew Industries Shooting Up On Content Growth, Margins, And Industry Growth
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