Shares of TriMas Corporation (NASDAQ:TRS) surged around 35% over the last year driven by its focus on leveraging the TriMas Business Model, segment restructuring, and a strong pipeline of product as well as process innovation. The company has outperformed its industry’s decline of 6%.
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TriMas Corporation (TRS): Free Stock Analysis Report
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Zacks Investment Research
The company has a market cap of $1.4 billion. Over the past three months, its average volume of shares traded has been approximately 137K.
Further, TriMas surpassed the Zacks Consensus Estimate in two of the trailing four quarters, registering an average positive earnings surprise of 3.97%.
Let's take a look at the factors that are driving this Zacks Rank #3 (Hold) stock.
Driving Factors
The company realigned its reporting structure in first-quarter 2018 by combining Engineered Components and Energy segments into a single reporting segment — Specialty Products. The Specialty Products segment, which accounted for around 36% of total revenues in the first quarter, reported 13% year-over-year sales improvement primarily driven by higher sales levels of all brands. This can be attributed to refocused commercial efforts and capitalizing on increased end market demand. TriMas anticipates the new segment to attain sales growth of nearly 5% in 2018.
TriMas continues to focus on leveraging the TriMas Business Model in order to drive the company’s performance. Its innovative solutions through product, process or service, as well as extensive resources will help strengthen business. Consequently, by refocusing on these efforts under the business model, TriMas will continue to recognize synergies which will aid results.
Additionally, TriMas remains committed to exploring options in order to improve its manufacturing footprint and strategies. In the Packaging segment, the company has invested in technical and manufacturing capacity to launch a line of e-commerce lotion pumps and trigger sprayers. Further, its Rieke business has developed a unique and innovative locking technology. It also consolidated 13 facilities which will further develop production efficiency and customer support.
TriMas estimates its organic sales to be up 3% and operating margin to be nearly 10-12% in 2018. General industrial activity levels have improved, particularly in the United States, which bodes well for TriMas. Moreover, the company is well positioned to take advantage of the incremental volume opportunities and continues to capitalize on its internal sales growth programs.
Upward Estimate Revisions
TriMas’ positive estimate revisions reflect analyst optimism on the company’s potential as earnings growth is often an indication of robust prospects. Estimates for the company moved up over the past 60 days, reflecting analysts’ bullish sentiments. The earnings estimates for both 2018 and 2019 have gone up 2%.
The abovementioned tailwinds have raised investors’ optimism in the stock and are anticipated to drive the company’s share price in the days ahead.
Stocks to Consider
Some better-ranked stocks in the same sector include Axon Enterprise, Inc (NASDAQ:AAXN) , Caterpillar Inc. (NYSE:CAT) and Terex Corporation (NYSE:TEX) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise has a long-term earnings growth rate of 25%. Its shares have appreciated 180%, over the past year.
Caterpillar has a long-term earnings growth rate of 13.3%. The company’s shares have been up 51% in the past year.
Terex has a long-term earnings growth rate of 21%. The stock has gained 21% in a year’s time.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
TriMas Corporation (TRS): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): Free Stock Analysis Report
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Zacks Investment Research
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