Rexnord Seeing Its Process Markets Kicking In

Rexnord (RXN) was arguably a bit of a late arriver to the industrial recovery, but the company ended the year with good revenue growth numbers. Given the company's leverage to process industries and institutional construction, this next year should be relatively stronger for Rexnord than its peer group, and management continues to prune the portfolio and pursue additional cost reduction opportunities.

I thought the shares offered some reasonable relative value back in February, and the shares have done okay since then - up more than 5% and outperforming both the S&P 500 and many industrial/multi-industrial peers (though relatively in line with close peers like Timken (TKR) and Regal Beloit (RBC)). The valuation still looks okay on a relative basis, though I think there are some other industrial names out there with more upside.

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Rexnord Seeing Its Process Markets Kicking In