This lawn equipment company is growing at double-digits and beat analysts’ earnings estimates by $0.12 last quarter.
The Toro Company (TTC)
From Weiss Stock Ratings Heat Maps
When you think of lawn mowers, you can’t help but single out The Toro Company (TTC). Its products are practically everywhere: From your neighbor’s yard to the local golf course to the nearby farm.
Founded in 1914, the company got its start making engines for the Bull Tractor company and got its name from the relationship: “TO-RO” from bullfighting parlance. Soon after, the famous Minikahda Club in Minneapolis asked the company to make a motorized fairway mower to replace horse-drawn equipment. The motorized golf maintenance business was on its way.
Today, Toro—which made $2.4 billion in sales during fiscal year 2015—is a worldwide leader in the turf, snow, and irrigation business. It holds leadership positions in just about every golf equipment maintenance category. And it makes retail products—such as walk power mowers, zero-turn riders, and snow blowers—that combine smart features and proven dependability.
And while Toro’s retail presence is unquestioned, the bulk of its business—nearly 70% last year—comes from commercial customers. And that goes a long way smoothing out choppy revenues that can come from retail sales.
The company also gets about a quarter of its business from outside the U.S. And even though the ups and downs in the value of the dollar can be troublesome, international markets can be excellent growth drivers.
The shares carry a price-to-earnings (P/E) ratio at 23.4, making it a bargain compared the sector’s 36.7, but a bit pricey none-the-less. But with and an average price target $98, there’s a ton more upside for the shares.
Toro carries a Weiss Rating of A+, making it the Best of the Best.
Mike Burnick, Weiss Stock Ratings Heat Maps, published by Money and Markets, a Division of Weiss Research, Inc., www.weissresearchissues.com/weiss-stock-ratings-heat-maps, 1-800- 291-8545, April 8, 2016