The much looked-for industrial recovery seems to be a little behind schedule, or at least that's one possible interpretation of weak welding results from Lincoln Electric (NASDAQ:LECO) and Illinois Tool Works (NYSE:ITW). With Colfax (NYSE:CFX) due to report tomorrow (as of this writing), investors will have a more complete picture of a market segment that often correlates pretty closely with overall economic activity, but the picture isn't as strong as analysts and investors had hoped.
Lincoln often trades at a premium valuation, and with double-digit ROICs in the nine of the last ten years, it's not hard to see why. With that, I'm tempted to think of pullbacks in the stock as buying opportunities...
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