Monday, January 6, 2020

Lincoln Electric Is A Name To Watch Through Earnings

With the earnings cycle about to ramp up again, this is a good time for investors to put together watch lists to take advantage of any earnings or guidance “freak outs”, not to mention sector-wide moves on revised expectations for 2020. Given that industrials have started to soften a bit after a strong rally from October to December, and that many investors and sell-side analysts are explicitly modeling a strong second-half rebound in 2020, there could be some vulnerability here to lower expectations and more caution on that rally.

I regard Lincoln Electric (LECO) as one of the best small/mid-cap names in the industrial sector, and it’s not a stock that investors often get the chance to buy at attractive prices. While I do believe the return prospects from today’s price aren’t ideal, I do see the company’s business bottoming out, with opportunities on both the revenue and margin side in 2020 and beyond. Were the shares to break $90 (let alone retest $80), this would be a name to seriously consider.

Read more here:
Lincoln Electric Is A Name To Watch Through Earnings

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