Lincoln Electric Downgraded To Hold On Lingering Concerns

By Zacks Investment ResearchStock MarketsJun 19, 2017 08:46AM ET

www.investing.com/analysis/article-200196018

Lincoln Electric Downgraded To Hold On Lingering Concerns

By Zacks Investment Research | Jun 19, 2017 08:46AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

CAT

-0.21%

Add to/Remove from Watchlist

AIRP

+0.25%

Add to/Remove from Watchlist

ROK

-0.09%

Add to/Remove from Watchlist

LECO

-0.42%

Add to/Remove from Watchlist

AGCO

-1.23%

Add to/Remove from Watchlist

On Jun 16, Lincoln Electric Holdings Inc. (NASDAQ:LECO) was downgraded to a Zacks Rank #3 (Hold).

Why the Downgrade?

Year to date, Lincoln Electric has outperformed the Zacks categorized Manufacturing - Tools & Related Products subindustry. The stock has yielded 26.4%, ahead of the subindustry’s gain of 23.5%.

However, the company’s stretched valuation is a concern. Lincoln Electric’s trailing 12-month price earnings (P/E) ratio is 28.3, while the Zacks categorized Machine -Tools and Related Products industry’s average trailing 12-month P/E ratio is pegged lower at 23.54. This implies that the stock is overvalued.

A stronger U.S. dollar will continue to affect the company’s exports. Persistent weakness in industrial production also remains a concern. Further, the ongoing declines in the energy and heavy fabrication sectors will continue to impact results.

Given its focus on innovation as a key value proposition, Lincoln Electric continued to increase investment in product development with higher year-over-year R&D spending. Though this has long-term benefits, it will impede margins in the near term.

Nevertheless, Lincoln Electric has been consistently investing in welding automation which is on growth path owing to the shortage of welding labor and new, low-cost welding robots that provide productivity savings to customers. In the past five years, the company acquired welding automation companies for approximately $320 million. On Mar 2, Lincoln Electric entered into exclusive negotiations with Air Liquide (PA:AIRP) to acquire its France-based subsidiary, Air Liquide Welding. The proposed acquisition is subject to a definitive agreement between the parties, and customary conditions as well as other provisions. Air Liquide Welding is an important player in the manufacturing of welding and cutting technologies, and had a turnover of around €350 million ($427 million) in 2016.

Lincoln Electric Holdings, Inc. Price and Consensus

Lincoln Electric Holdings, Inc. Price and Consensus | Lincoln Electric Holdings, Inc. Quote

Lincoln Electric is also poised to gain from focus on its customers, along with execution of the 2020 vision and strategy. Implementation of 2020 strategy initiatives delivered solid profitability performance. The design and investment in unique solutions, leading application expertise, 600-plus technical sales team, 1000-plus automation team and focus on operational excellence continues to drive value in its business.

Stocks to Consider

Better-ranked stocks worth considering in the same sector are AGCO Corporation (NYSE:AGCO) , Caterpillar, Inc. (NYSE:CAT) and Rockwell Automation Inc. (NYSE:ROK) . AGCO Corporation and Caterpillar flaunt a Zacks Rank #1 (Strong Buy) while Rockwell Automation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO has an average positive earnings surprise of 40.39% in the trailing four quarters. Caterpillar generated an average positive earnings surprise of 40.25% in the past four quarters. Rockwell Automation has an average positive earnings surprise of 9.89%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>

Rockwell Automation, Inc. (ROK): Free Stock Analysis Report

Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report

Caterpillar, Inc. (CAT): Free Stock Analysis Report

AGCO Corporation (AGCO): Free Stock Analysis Report

Original post

Zacks Investment Research

Home Depot Turns a Corner: New Highs Likely This Year By Thomas Hughes - Feb 26, 2025

Home Depot’s (NYSE:HD) Q4 2024 report and guidance for 2025 have plenty to be unhappy about, but the simple truth is that this company turned a corner in 2024. It is on track for...

Nvidia Q4 Earnings Preview: A Make-or-Break Moment for the AI Trade? By Jesse Cohen - Feb 26, 2025 1

Nvidia is scheduled to release its Q4 earnings report at 4:20PM ET on Wednesday. A call with CEO Jensen Huang is set for 5:00PM ET. The chipmaker’s results will serve as a...

Stanley Druckenmiller Bets Big on Airline Stocks – Should You? By Gabriel Osorio-Mazzilli - Feb 26, 2025

Warren Buffett has always critiqued airline stocks for being overly capital-intensive, exhibiting low growth, and relying heavily on cyclical consumer travel patterns—further...

Add a Comment

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.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

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.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

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.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.90%

Mar 06, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	43,383.2	-238.1	-0.55%
US 500	5,947.6	-7.8	-0.13%
Dow Jones	43,383.85	-237.31	-0.54%
S&P 500	5,947.44	-7.92	-0.13%
Nasdaq	19,035.88	+9.49	+0.05%
S&P 500 VIX	19.80	+0.37	+1.90%
Dollar Index	106.290	+0.062	+0.06%

Crude Oil WTI	68.56	-0.37	-0.54%
Brent Oil	72.08	-0.42	-0.58%
Natural Gas	3.987	-0.143	-3.46%
Gold	2,928.39	+9.59	+0.33%
Silver	32.178	+0.352	+1.10%
Copper	4.5778	+0.0503	+1.11%
US Soybeans	1,021.75	-8.25	-0.80%

U.S. 10Y	4.255	-0.043	-1.00%
U.S. 30Y	4.513	-0.043	-0.94%
U.S. 5Y	4.091	-0.040	-0.97%
U.S. 3M	4.299	+0.008	+0.19%
US 10Y T-Note	110.78	+0.27	+0.24%
Euro Bund	132.96	+0.50	+0.37%
10-2 Yield Spread	19.61	-2.98	-13.19%

Apple	239.29	-7.75	-3.14%
Alphabet A	172.93	-2.49	-1.42%
Tesla	293.34	-9.46	-3.12%
Amazon.com	214.38	+1.58	+0.74%
Netflix	987.48	+10.24	+1.05%
Meta Platforms	671.98	+14.48	+2.20%
Bank of America	43.89	-0.05	-0.11%

Lincoln Electric Downgraded To Hold On Lingering Concerns

Related Articles