Valmont Industries: Medium To Long-Term Prospects Are Compelling

GS Analytics
3.23K Followers

Summary

  • Valmont Industries faces near-term headwinds from declining steel prices and exiting low-margin solar business, but has strong medium to long-term growth prospects.
  • Revenue declined in Q2 2024 due to challenges in the infrastructure and agriculture segments, but the company remains optimistic about long-term growth drivers.
  • Margins improved in Q2 2024, benefiting from pricing increases and cost-saving initiatives, with a positive outlook for the second half of the year.
  • The valuation is attractive.

Valmont Industries headquarters in Omaha, Nebraska, USA

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Investment Thesis

While Valmont Industries (NYSE:VMI) faces some near-term headwinds such as pricing pressures from declining steel prices and exit from its low-margin solar business, the company’s medium to long-term growth prospects remain attractive. In the Infrastructure segment, the company

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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.

This article is written by Gayatri S.

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