Regal Beloit Still Underappreciated On Its Recovery, Expansion, And M&A Leverage

Aug. 16, 2021 7:26 PM ETRegal Rexnord Corporation (RRX) StockZWS, RRX
Stephen Simpson
20.39K Followers

Summary

  • Regal Beloit posted not only strong revenue growth and margin leverage, but sales and profit results comfortably ahead of expectations despite supply chain pressures.
  • HVAC remains a red-hot market for Regal, but alt energy, automation, and data center are looking pretty solid as well.
  • RBC has more leverage to popular long-term industrial growth themes like automation and HVAC than seems to be appreciated by the market, and the shares offer attractive long-term potential here.

Permanent magnet motor disassembled close-up
Bosca78/E+ via Getty Images

Shorter-cycle industrial stocks haven’t been doing as well lately, with the market worried that growth is already peaking and preferring instead to move on to longer-cycle ideas or theme stocks (automation, electrification, HVAC, et al). That hasn’t helped

This article was written by

20.39K Followers
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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