Wall Street is an expectations game in the short term, and I think that’s likely the best explanation for Lincoln Electric’s (LECO)
roughly 10% move over the past couple of weeks (including a 4% move
after reporting second quarter earnings). Management’s relatively calm
guidance certainly didn’t hurt, but underlying results weren’t so strong
and I’m a little surprised that the Street took a margin shortfall
without much consternation.
I do believe that
Lincoln is a quality company and certainly a high-quality industrial,
and the shares have done well over the long term despite the cyclicality
of the business. I don’t think we’re in the clear yet with respect to
the industrial sector, but if the shares pull back again below $80, I
think this is a name to consider.
Read more here:
Lincoln Electric's Shares Look Stronger Than The Business
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