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The Next Few Quarters Could Be Tough For Lindsay
- Lindsay has been experiencing cyclical difficulties in the Irrigation Segment, while the much smaller Infrastructure segment continues to strengthen.
- Given the current competitive environment in the agricultural equipment market, we could see Lindsay's Irrigation margins suffer as dreadful market conditions persist.
- Despite these troubles, it is encouraging to see that Lindsay recently closed on their $70.5 million acquisition of a machine-to-machine technology company.
Woodward Is Facing Some Serious Obstacles But Still On Track
- Woodward has been performing generally well with the exception of some struggles in defense and the Chinese energy market.
- The long-term prospects remain in place and short-term catalysts are significant.
- Falling oil prices could adversely effect the aerospace backlog.
- The valuation indicates neither significant upside nor downside.
Franklin Electric: An Asymmetric Risk/Reward Opportunity
- Franklin Electric faced a few temporary problems in 2014, and the results were still considerably impressive.
- Growth in developing regions, an improved US distribution footprint, and other factors suggest that sales will rise in coming years.
- The valuation shows that there could be some upside here.
Lindsay Corporation: Long Term Potential Paired With Short Term Struggles
- Lindsay has a number of catalysts to drive both the Infrastructure and Irrigation Segments of their business in the long term.
- Due primarily to depressed crop prices, the next few quarterly reports, at least, might be a bit disappointing.
- The valuation indicates a base case with 13% upside, but it could take a while to realize this.
Quanta Services: Now Is The Time To Buy
- Quanta Services currently dominates the markets that it is involved in, which has led them to a position of financial and operational strength.
- A series of catalysts lead me to the conclusion that Quanta will continue to grow revenues at an impressive rate for years to come.
- Based on an analysis of multiples and a discounted cash flow analysis, Quanta is undervalued at around $27 a share.
Google's M&A Activity Is One Of The Company's Primary Value Drivers
- With undisputed dominance in search, the rest of Google's success depends on M&A activity.
- In the past, the company has made effective acquisitions that have bolstered company finances and operations.
- This trend should continue due to numerous opportunities and a strong balance sheet.
Why Caterpillar Isn't Anything More Than A Hold Here
- Caterpillar has multiple long-term growth prospects, as well as a well-established brand. This leads me to be bullish in the long term.
- As for the next few quarters at least, the concerns about the mining industry could pose a legitimate threat.
- The valuation indicates that Caterpillar is fairly valued.
EnerSys: An Under-Followed Company With Great Prospects For The Future
- Exciting product developments indicate that EnerSys could see increased earnings soon.
- Catalysts range from short term (affects visible within the next few quarters) to long term (10-20 years).
- The valuation currently indicates that some investors might want to wait for a small dip.
Hexcel: Shrinking Multiples And Increased Earnings Could Lead To An Entry Point
- Since the beginning of this year, Hexcel has seen its valuation fall despite continued fantastic performance.
- In recent months, Hexcel's relationships with Airbus and Boeing have continued to improve.
- The current valuation indicates that the stock is about fairly valued. If the trend of shrinking multiple and rising earnings continues, there could be a buying opportunity.
Valmont Industries: A Series Of Growth Opportunities Fit Company Strategy Perfectly
- In the last few quarters, Valmont has suffered or been anticipating a series of short term struggles.
- Despite this, the long term strategy and growth prospects still remain relevant and give investors reason to be optimistic.
- The contrast between short term worries and long term opportunities has left Valmont's stock very cheap on a historical basis.
Flowserve Has A Bright Future With Limited Risk
- With a series of strengths and differentiating factors, Flowserve's business model looks very strong.
- Diversification across various industries and geographic regions limit risk and maximize exposure to growth opportunities.
- The company's progress in the last few years has been fantastic and positions them for further success in coming years.
Beacon Roofing: Growth Is Already Priced In
- With ambitious plans and strategies for growth, Beacon is likely to grow sales at an impressive rate over the long term.
- One of the main issues the company faces today is declining margins.
- The valuation indicates that Beacon might not be a buy at these prices, considering that both risk and reward are significant.
The Reward Far Outweighs The Risk At AGCO
- A series of catalysts ranging from higher farmer incomes to increased cost savings can drive earnings higher in the coming years.
- The only major risk, besides a general economic downturn, is elevated tensions in Eastern Europe. AGCO, though, could still derive growth from numerous other areas.
- The valuation indicates that AGCO is trading at a discount of what is likely more than 40%.
MSA Safety Can Go At Least 20% Higher From Here
- A focus on core products has led MSA to have great success and growth in the past few years.
- The company has numerous catalysts that can drive earnings higher in the near future.
- With limited risk and a valuation that indicates at least 20% upside, MSA is worth a look.
3M: Increasing Earnings Through Consistent Innovation
- With company policies that encourage risk taking and innovation, 3M has historically adapted to change in a successful manner.
- Current financial health indicates that the company can take on more debt if necessary.
- There are a few catalysts that should drive earnings higher in the next five years or so.
Take-Two Interactive: Wait For A Dip
- Take-Two's stock has risen over 20% in the past 52 weeks and is almost at $20.
- A number of catalysts accompanied by an already strong business model indicate that Take-Two will experience continued success.
- At $19.59, it might be a little expensive for some. But for true long term value investors, now might not be a bad time to jump in.
The Market Has Already Accounted For Federal Signal's Turnaround
- After dealing with a few years of net losses, Federal Signal has finally managed to turn things around, but this is already reflected in the stock price.
- The company has an incredible balance sheet that is prepared to take on any challenge or project necessary.
- The portfolio of businesses that Federal Signal has built up has very encouraging opportunities for growth.
Quanta Services: Prosperous Future Could Already Be Reflected In The Price
- Quanta currently has a very strong balance sheet and is financially capable of taking on whatever projects that are needed.
- The company is positioned to capitalize on the expected increase in infrastructure expenditures that we should see in coming years, both in the short and long term.
- The valuation seems to indicate the market may already be acknowledging these facts.
Esterline: A Great Company Available At A Fair Price
- With an accelerated integration program in full swing, Esterline should see benefits on the bottom line.
- The company has recently had some very strong quarters and is showing encouraging signs.
- Besides a challenged defense environment, risks seem to be limited.
- Although the business has a bright future, this may already be priced in.
- Buy Growth At A Fair Price With Aegion
- NGL Energy Partners: Price Is Wrong, Growth Is Right
- Catalysts Should Overpower The Risks That Woodward Will Face
- Cognex: A Great Company With A Hefty Price
- At Least 20% Upside For ValueClick
- Apple: Another Problem With The Bears' Logic
- OmniVision Technologies Has A Bright Future
- Cirrus Logic: Asymmetric Risk And Reward Make This Stock A Buy
- Disney Will Continue To Enjoy Success In The Coming Years
- The Long Case For Rogers Corporation
- Franklin Electric Has A Bright Future With New Products And Developing Markets
- Why The Bears Are Wrong About Apple
- Strong Catalysts For Growth And A Great Price Make Open Text A Buy