ValuEngine Upgrades Transmission Maker TWIN DISC to BUY

For today’s bulletin, we take a look at TWIN DISC $TWIN. We also provide a link to download a FREE STOCK REPORT on the company.

VALUATION WATCH: Overvalued stocks now make up 53.66% of our stocks assigned a valuation and 20.89% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.
For today’s edition of our upgrade list, we used our website’s advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. All of our upgrades today are rated BUY. There were no STRONG BUY upgrades today.

Ticker Company Name Market Price Valuation Last 12-M Return 1-M Forecast Return 1-Yr Forecast Return P/E Ratio Sector Name
USAC USA COMPRESSION 18.31 63.21% 8.41% 0.63% 7.61% 72.27631 Oils-Energy
QUOT QUOTIENT TECH 13.45 11.93% 28.10% 0.57% 6.80% N/A Business Services
TGH TEXTAINER GROUP 17 1.96% 49.78% 0.56% 6.74% 17.05685 Transportation
TWIN TWIN DISC 28.51 3.13% 58.74% 0.54% 6.44% 29.4931 Industrial Products
HRTG HERITAGE INSUR 17.04 1.09% 34.92% 0.51% 6.14% 9.431734 Finance

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TWIN DISC, INC. (TWIN) designs, manufactures and sells heavy duty off-highway power transmission equipment. Products offered include: hydraulic torque converters; power-shift transmissions; marine transmissions and surface drives; universal joints; gas turbine starting drives; power take-offs and reduction gears; industrial clutches; fluid couplings and control systems. Principal markets are: construction equipment, industrial equipment, government, marine, energy and natural resources and agriculture.

The company reported Q3 2018 results last week and, like so many of our featured stocks lately, they had decent results. Sales for the fiscal 2018 third quarter increased to $65,349,000, from $45,084,000 for the same period last year.  The 44.9% increase in 2018 third quarter sales was primarily due to improved demand for the Company’s 8500 series transmission systems from North American fracking customers, and higher sales of aftermarket components. In addition, global demand year-over-year has improved across many of the Company’s other markets. Year-to-date, sales were $166,960,000, compared to $114,591,000 for the fiscal 2017 nine months.  Currency movement contributed $2,141,000 and $3,599,000 to the third quarter and year to date volume growth, respectively.

CEO John Batten had this to say about the latest results:

Strengthening demand trends from customers in the North American fracking market, as well as throughout many of our other global markets, is driving significant growth in sales and profitability, The actions we took during the past two years aimed at realigning our cost structure, investing in our products, and supporting our customers is paying off and we are extending our leadership position throughout many of our product categories.  As our financial results benefit from improving demand, we are working to further expand our competitive position, enhance our operations, and improve the diversification of our business.  We have created a compelling global platform that is well positioned for continued growth.

ValuEngine updated its recommendation from HOLD to BUY for TWIN DISC on 2018-05-15. Based on the information we have gathered and our resulting research, we feel that TWIN DISC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Earnings Growth Rate.

You can download a free copy of detailed report on TWIN DISC, INC. (TWIN) from the link below.

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 28.66 0.54%
3-Month 28.21 -1.05%
6-Month 28.77 0.91%
1-Year 30.35 6.44%
2-Year 27.15 -4.77%
3-Year 24.85 -12.82%
Valuation & Rankings
Valuation 3.13% overvalued Valuation Rank(?) 47
1-M Forecast Return 0.54% 1-M Forecast Return Rank 87
12-M Return 58.74% Momentum Rank(?) 92
Sharpe Ratio 0.01 Sharpe Ratio Rank(?) 51
5-Y Avg Annual Return 0.70% 5-Y Avg Annual Rtn Rank 52
Volatility 46.79% Volatility Rank(?) 35
Expected EPS Growth 48.28% EPS Growth Rank(?) 73
Market Cap (billions) 0.32 Size Rank 46
Trailing P/E Ratio 29.49 Trailing P/E Rank(?) 45
Forward P/E Ratio 19.89 Forward P/E Ratio Rank 32
PEG Ratio 0.61 PEG Ratio Rank 53
Price/Sales 1.46 Price/Sales Rank(?) 59
Market/Book 2.46 Market/Book Rank(?) 47
Beta 1.75 Beta Rank 13
Alpha -0.06 Alpha Rank 41

 

DOWNLOAD A FREE SAMPLE OF OUR TWIN DISC (TWIN) REPORT BY CLICKING HERE

 

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Steve Hach
Senior Editor
ValuEngine.Com