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Overview
I previously covered Lindsay Corporation (NYSE:LNN) almost a year ago and the stock has outpaced the S&P 500 since then. I issued a hold rating due to the shrinking revenue
Lindsay Corporation: Q3 Earnings Indicate Strength But Limited Upside
Summary
- Lindsay Corporation (LNN) has shown strong recent performance, but currently trades near fair value with limited near-term upside catalysts.
- Q3 earnings were robust, driven by international irrigation sales and improved operating income, while the balance sheet remains healthy with strong cash flow.
- Dividend growth is steady but modest, with a low payout ratio and 22 years of increases, though future raises could be more substantial.
- I maintain a hold rating, awaiting lower interest rates as a key catalyst for growth, while recognizing LNN's resilience and solid financial position.
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.
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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