Federal Signal Corporation (NYSE:FSS) yesterday announced rewards for its shareholders in the form of a share buyback authorization. Concurrently, the company communicated that some of its existing products can be utilized for fighting the coronavirus outbreak. For this purpose, it launched a website for spreading awareness.
Notably, the company’s share price decreased 8.5% yesterday, ending the trading session at $26.38.
Inside the Headlines
Under the newly authorized buyback program, Federal Signal can buy back up to $75 million worth shares. The new buyback plan is in addition to the company’s repurchase program authorized in November 2014.
Ending 2019, it was left with the authorization to buy back $29 million worth shares from the 2014 program.
We believe that such disbursements vouch for Federal Signal’s shareholder-friendly policies and strong cash position.
In addition, the company launched a website — www.fedsigresponse.com — which provides information on how its existing products can be used for containing the coronavirus outbreak.
Federal Signal’s products — including Jetstream, TRUVAC, Elgin Sweeper and Vactor — can be used for sanitizing and cleaning parks, museums, recreational spaces, train stations, buses, railcars, bridges, and others. These products are made by Federal Signal’s Environmental Solutions Group.
Zacks Rank, Price Performance & Estimate Trend
The company currently has a market capitalization of $1.8 billion and a Zacks Rank #3 (Hold). In the past three months, the stock has fallen 18.4% compared with the industry’s decline of 27.9%.
Earnings estimates for Federal Signal have been lowered in the past 60 days. Currently, the Zacks Consensus Estimate for the bottom line is pegged at $1.90 for 2020, reflecting a decline of 1.6% from the 60-day-ago figures.
Federal Signal Corporation Price and Consensus
Federal Signal Corporation price-consensus-chart | Federal Signal Corporation Quote
Stocks to Consider
Some better-ranked stocks are Griffon Corporation (NYSE:GFF) , Regal Beloit Corporation (NYSE:RBC) and Dover Corporation (NYSE:DOV) . All these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Current-year earnings estimates for the companies have moved north over the past 60 days. Further, positive earnings surprise for the last reported quarter was 50% for Griffon, 0.81% for Regal Beloit and 5.48% for Dover.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Regal Beloit Corporation (RBC): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Federal Signal Corporation (FSS): Free Stock Analysis Report
Griffon Corporation (GFF): Free Stock Analysis Report
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