雅虎香港財經 Universal Stainless (USAP) Rallies 78% in 6 Months: Here's Why
Universal Stainless & Alloy Products, Inc.’s USAP shares have appreciated 78.4% in the past six months. The company also outperformed the industry’s fall of 15.6% and topped the S&P 500’s nearly 15.5% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look at the factors driving the stock’s price appreciation.
What’s Working in USAP’s Favor?
Universal Stainless demonstrated a robust performance in first-quarter 2024, marking a notable turnaround from the previous year's figures. The company posted earnings of 43 cents per share, improving from a loss of 6 cents a year ago. This underscores USAP's resilient strategy and strategic advancements.
The company achieved remarkable sales growth, reaching $77.6 million, up 18% from the prior-year quarter’s levels. The upside was primarily driven by outstanding performances in the specialty alloys and premium alloys segments, which registered year-over-year increases of 18% and 14%, respectively. The aerospace sector was particularly notable, with sales surging approximately 23% to $60.2 million, highlighting USAP's strong position in this critical market segment.
USAP's strategic focus on diversification and innovation is evident in its sales distribution across various end markets. While aerospace is a cornerstone of its success, the company demonstrated adaptability and resilience by achieving growth in sectors such as heavy equipment and general industrial, strengthening its overall market presence.
In the first quarter, USAP achieved its highest profitability in 12 years, with a gross margin of 18.9% on near-record sales. This performance was driven by robust aerospace demand and the continued realization of base price increases implemented in the past three years.
USAP has a trailing four-quarter average earnings surprise of 44.4%. The Zacks Consensus Estimate for 2024 earnings is pegged at $1.50 per share, indicating a surge of 183% from the previous year's levels.
Universal Stainless & Alloy Products, Inc. Price and Consensus
Universal Stainless & Alloy Products, Inc. price-consensus-chart | Universal Stainless & Alloy Products, Inc. Quote
Zacks Rank & Key Picks
Universal Stainless currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, ATI Inc. ATI and Ecolab Inc. ECL. While Carpenter Technology sports a Zacks Rank #1 (Strong Buy) at present, ATI and Ecolab carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.31, indicating a year-over-year rise of 278%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 92.9% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 8.34%, on average. The stock has jumped 36.8% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a rise of 26.5% from the year-ago levels. ECL beat the consensus estimate in each of the last four quarters, the average earnings surprise being 1.3. The stock has rallied nearly 34.7% in the past year.
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Ecolab Inc. (ECL) : Free Stock Analysis Report
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Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
