Welding market leader Lincoln Electric (LECO)
has gone nowhere fast over the past year, as the market seems to be
uncertain about the prospects for ongoing recoveries in the industrial
markets that the company serves. Lincoln Electric is also dealing with
input cost inflation while working to integrate its Air Liquide
acquisition and continuing to build out its automation offerings.
Although
metalworking demand still seems to be relatively healthy, I can
understand investor caution regarding heavy industry and general
fabrication markets, as this recovery cycle has been going on for a
little while. Lincoln Electric is a very well-run company, typically
producing mid-to-high teens ROICs, but it remains cyclical, and
investors seem to be more and more cautious toward cyclical industrial
stocks right now.
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Lincoln Electric Doing Its Part, But The End-Market Outlooks Are Getting Murky
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