Thursday, July 22, 2021

Columbus McKinnon's Recent Slide Creates A New Window Of Opportunity

 

Shorter-cycle industrial companies leveraged to the ongoing manufacturing recovery haven't really been in favor lately, and Columbus McKinnon (CMCO) shares have slid about 10% since my last update. That comes despite a late May earnings report that was pretty good, not to mention ongoing opportunities to leverage the company's capabilities into more advanced material handling and intelligent motion markets, as well as the recent Dorner acquisition.

Columbus McKinnon isn't a particularly sexy stock, and given the recent concerns that the industrial recovery is already peaking, I can understand why some investors may be looking elsewhere. I believe that's a mistake, though, as Columbus McKinnon is making investments into product development that many of its rivals aren't, and I believe the company is looking at mid-single-digit long-term revenue growth and improving margins as it grows market share, improves its go-to-market strategy, and leverages product/market expansion opportunities.

 

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Columbus McKinnon's Recent Slide Creates A New Window Of Opportunity

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