This industrial machinery company is expected to grow 75.5% next year. Coverage of the shares was just initiated at Stifel and Citi, with ‘Buy’ ratings.
Chart Industries, Inc. (GTLS)
From Cabot Undervalued Stocks Advisor
GROWTH STOCK PICK
Chart Industries, Inc. (GTLS) is a leading independent global manufacturer of highly engineered equipment serving multiple market applications in energy and industrial gas. The company is actively growing its global presence and revenue with operations in the U.S., Europe, Asia, Australia and Latin America.
In listening to the webcast of the company’s November 2019 Investor Presentation, it becomes clear that Chart Industries is focused on business expansion and efficiency, people and safety, cutting wasteful costs and making acquisitions that enhance current operations. This webcast delivered one of the most impressive corporate presentations I’ve ever heard.
Chart has no direct peers, offering turnkey solutions with a much broader set of product offerings than other industry participants.
Revenue has been growing aggressively since 2017. Consensus estimates point to 2020 revenue and EPS growing 23% and 75.5%, respectively, while the 2020 P/E is very low at 13.2. Clearly, the investment community has not caught on to Chart’s expertise and success.
GTLS is a small-cap stock with significant institutional ownership. The share price declined in 2019, and is now rebounding, with over 40% upside as GTLS aims to retrace its 2019 high of 95.
Crista Huff, Cabot Undervalued Stocks Advisor, www.cabotwealth.com, 978-745-5532, December 26, 2019