3 Reasons To Add Regal Beloit (RBC) To Your Portfolio Now

Headquartered in Beloit, WI, Regal Beloit Corporation (NYSE:RBC) is a leading manufacturer of electrical and mechanical motion control products. The company offers a wide array of stock model and customized electric motors, blowers, electric generators, transfer switches, switchgear, valves, gearboxes, power generation components and controls. Regal Beloit has manufacturing, sales and service facilities throughout the U.S., Canada, Mexico, Europe and Asia. It markets its products to a diversified customer base across the globe including OEMs, distributors and end users.

Over the years, the company consolidated its product lines and streamlined brands to evolve as a dynamic enterprise. In order to drive continuous improvement, Regal Beloit follows ‘Compass Operating System’ that encompasses a common set of business processes, disciplines and lean Six Sigma tools. Backed by an “open-door” management style, this has helped the company gain a competitive advantage and reach more people in diverse markets around the world.

Let us take a look at the reasons that make the stock a must buy at the moment.

Solid Rank & VGM Score

Regal Beloit currently has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of ‘A’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Consequently, Regal Beloit appears to be a solid investment proposition at the moment.

Estimate Revisions

Over the last three months, Regal Beloit’s current-quarter estimates increased from $1.25 to $1.29 per share while that for the current year increased from $4.73 to $4.82. With positive estimate revisions, investor sentiments clearly appear to be bullish on the stock.

First-Quarter Price Performance

For the first quarter, Regal Beloit’s shares performed relatively better than the Zacks categorized Machinery-Electrical industry with an average return of 9.2% compared with an 8.1% gain for the latter. Despite a challenging macroeconomic environment, the company reported decent first-quarter 2017 results with GAAP earnings of $1.02 per share compared with 93 cents in the year-earlier quarter. The significant year-over-year improvement in GAAP earnings was primarily due to lower operating expenses. Adjusted earnings for the quarter were $1.07 per share compared with 95 cents in the year-ago quarter. Adjusted earnings beat the Zacks Consensus Estimate of 96 cents.

Moving Forward

The company continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. Regal Beloit increased its quarterly dividend by 8% year over year to 26 cents per share. We believe that such moves along with its robust operating platform and an efficient management team will help in the execution of its strategic priorities and drive net asset value.

Other top stocks in the industry include Eaton Corporation plc (NYSE:ETN) , EnerSys (NYSE:ENS) and Barnes Group Inc. (NYSE:B) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Eaton has a long-term earnings growth expectation of 8.8%. It topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 3.3%.

EnerSys has a long-term earnings growth expectation of 9.5%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 5.1%.

Barnes has a long-term earnings growth expectation of 9.0%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 8.9%.

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Eaton Corporation, PLC (ETN): Free Stock Analysis Report

Regal Beloit Corporation (RBC): Free Stock Analysis Report

Barnes Group, Inc. (B): Free Stock Analysis Report

Enersys (ENS): Free Stock Analysis Report

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