Toro (TTC) Attains All-Time High, Grows On Positive Outlook

Shares of Toro Co. (NYSE:TTC) scaled a fresh 52-week high of $90.75 on Jul 6, before settling a tad lower at $90.71. In fact, the company has scaled an all-time high. Toro's share price has been on the rise since the company posted record second-quarter fiscal 2016 results on May 19. Further, its new product line-up for 2016 and positive outlook continues to fuel price appreciation.

This Bloomington, MN-based provider of turf and landscape maintenance equipment as well as irrigation solutions for golf courses has a market cap of $4.99 billion. Average volume of shares traded over the last three months is approximately 306K.

Toro has delivered a year-to-date return of around 22.49%. The company has outperformed the Zacks Consensus Estimate in all the four trailing quarters with an average positive surprise of 10.53%.

Growth Drivers

Toro continues to focus on creating innovative new products and is well-positioned to capitalize on both existing demands and new growth opportunities across the businesses in the second half of the year. The landscape contractor business is expected to continue its strong momentum based on robust market acceptance and demand for new zero-turn riding and stand-on mowers.

The launch of a new Multi-Force stand-on mower will bring a unique level of versatility to the landscape contractors. The golf and grounds equipment business is well poised, based on its recently-launched innovations, which include the next generation of precision Flex Series walk greensmowers and the budget friendly Greensmaster 3120.

Further, the company’s latest innovations in the golf and grounds equipment team will perform favorably in the second half, even compared to the sturdy fall and summer results a year ago. Golf irrigation should benefit from ongoing renovation and installation projects in the second half of the year.

Rental and construction markets are expected to remain strong throughout the year and the rental and specialty construction businesses continues to exhibit a strong order base heading in the third quarter. Demand for the new TX 1000 compact utility loader should continue to rise as more potential buyers are exposed to its innovative design.

Innovation is also the key to momentum developing behind their micro-irrigation business, particularly in North America. Further, the need for food and the efficient use of scarce water resources is set to accelerate. Like other businesses, the micro-irrigation third-quarter position remains solid.

Toro reported record second-quarter fiscal 2016 (ended Apr 29) earnings of $1.89 per share which increased 15% from $1.64 in the year-ago quarter. Earnings surpassed the management’s guided range of about $1.75−$1.80 per share. Toro raised its net earnings per share guidance to the new range of $3.90−$4.00 from the prior band of $3.85−$3.95. For the third quarter, the company expects net earnings per share to be about 95 cents.

At present, Toro has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the sector include Brady Corp. (NYSE:BRC) , Harsco Corp. (NYSE:HSC) and Nordson Corp. (NASDAQ:NDSN) . All these stocks sport a Zacks Rank #1 (Strong Buy).