Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Colfax (CFX) Displays Bright Prospects, Headwinds Remain

By Zacks Investment ResearchStock MarketsMar 27, 2020 07:45AM ET
www.investing.com/analysis/colfax-cfx-displays-bright-prospects-headwinds-remain-200519533
Colfax (CFX) Displays Bright Prospects, Headwinds Remain
By Zacks Investment Research   |  Mar 27, 2020 07:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BWEN
+1.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GGG
-0.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TNC
-0.56%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ENOV
+1.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

On Mar 27, we issued an updated research report on Colfax Corporation (NYSE:CFX) .

In the past six months, this Zacks Rank #3 (Hold) stock has lost 28%. Also, the industry has recorded a decline of 21.8%, over the same time frame.



Existing Business Scenario

Colfax will likely benefit from its focus on strengthening segmental businesses along with its productivity actions, innovation investments and product developmental process in the upcoming quarters. Also, a sturdy traction in its Medical Technology segment on the back of progress in the reconstructive and prevention & rehabilitation product lines will bolster its top-line performance in the quarters ahead.

The company completed the buyout of DJO Global in February 2019. This marked its entry into the orthopedic solutions industry. Notably, acquisitions had a positive contribution of 0.1% revenue growth in the fourth quarter of 2019. In addition, Colfax completed the divestment of its Air & Gas Handling business in September 2019. This transaction will enable the company in achieving its leverage target and improve profitability apart from helping in backing buyouts in its Fabrication Technology and Medical Technology segments.

However, over the past few quarters, Colfax has been experiencing escalating costs of sales. Notably, in the third quarter and the fourth quarter of 2019, its cost of sales rose 35.6% and 25.2%, respectively, on a year-over-year basis. In the same period, its selling, general and administrative expenses jumped 124.2% and 96.6%, respectively, year over year. In addition, high restructuring and other related charges, reflecting a year-over-year rise of 46.9% and 92.6% in the third quarter and the fourth quarter, respectively, can be concerning.

Further, high debt level remains a concern for the company. For instance, it had a long-term debt of $2,284.2 million at fourth-quarter end, up 91.6% from the 2018-end level. Higher debts also escalated its interest expenses by 142.5% year over year in 2019.

Stocks to Consider

Some better-ranked stocks from the same space are Graco Inc. (NYSE:GGG) , Tennant Company (NYSE:TNC) and Broadwind Energy, Inc. (NASDAQ:BWEN) . While Graco and Tennant sport a Zacks Rank #1 (Strong Buy), Broadwind Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Graco delivered positive earnings surprise of 0.40%, on average, in the trailing four quarters.

Tennant delivered positive earnings surprise of 26.60%, on average, in the trailing four quarters.

Broadwind Energy delivered positive earnings surprise of 10.42%, on average, in the trailing four quarters.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



Graco Inc. (GGG): Free Stock Analysis Report

Colfax Corporation (CFX): Free Stock Analysis Report

Tennant Company (TNC): Free Stock Analysis Report

Broadwind Energy, Inc. (BWEN): Free Stock Analysis Report

Original post
Colfax (CFX) Displays Bright Prospects, Headwinds Remain
 

Related Articles

Colfax (CFX) Displays Bright Prospects, Headwinds Remain

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email