Atlas Copco Riding High On Renewed Enthusiasm For Recovery Stories

I’ve long liked Atlas Copco (OTCPK:ATLKY), but there haven’t been all that many opportunities to buy in at what would normally be reasonable multiples. Between low rates leading investors to accept lower prospective returns and Atlas Copco’s ongoing well-deserved status as a reliable growth leader, though, it hasn’t hurt the share price performance – Atlas shares have significantly outperformed industrial peers over the last 5-year, 3-year, 1-year, and 1-quarter time periods.

Atlas Copco’s recent capital markets day didn’t offer up a lot that was new, but for a company like Atlas Copco, “more of the same” when it comes to new product development, end-market/addressable market expansion, and margin leverage, more of the same is just fine. I can’t see any way that Atlas Copco shares are cheap now, though, and the prospective mid-single-digit return is among the worst of the quality industrials I follow (if not the worst). I don’t expect Atlas to sell off just because the shares look expensive to me, but it’s not a stock I intend to chase at these prices.

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Atlas Copco Riding High On Renewed Enthusiasm For Recovery Stories