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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