This industrial company’s EPS forecasts were just increased by three analysts, and the company beat earnings projections by two cents last quarter.
ACCO Brands Corp. (ACCO)
From Top Stocks under $10
I was eager to get into ACCO Brands Corp. (ACCO) because it’s our highest-ranked stock. But that’s not the only reason.
ACCO is considered an industrial company. It manufactures, markets, and distributes office, school, and calendar products primarily in the United States, Northern Europe, Brazil, Canada, Australia, and Mexico.
The company’s latest quarterly report came with a hefty decline in share prices. This peaked my interest even more, because ACCO showed:
- Revenue growth of 3.4% that beat expectations.
- Earnings-per-share of $0.02 that also bested street estimates.
- Raised EPS guidance for FY 2016.
The rationale my team and I came up with is that non-domestic sales slowed on a constant-currency basis and upwardly revised EPS guidance was attributable to more efficiencies.
In my mind, the positive earnings results provide a trifecta of top- and bottom-line beats with upwardly revised guidance. I see that combination as a buying opportunity. Now, take a look at ACCO’s chart:
As you can see from this chart, the sharp 2016 advance is reflective of solid fundamentals at ACCO Brands. And the corrective pullback in those shares presents a “buy-on-weakness” opportunity for more upside: I’m targeting $11.25 for now.
Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, August 10, 2016