DXP Enterprises(DXPE)
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DXP Enterprises(DXPE) - 2025 Q2 - Quarterly Results
2025-08-07 18:46
[Second Quarter 2025 Earnings Release Overview](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Release%20Overview) DXP Enterprises reported strong financial results for Q2 2025, with significant sales growth, a record adjusted EBITDA margin, and strategic acquisitions [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) DXP Enterprises achieved strong financial performance in Q2 2025, with significant sequential and year-over-year sales growth, an adjusted EBITDA margin of 11.5%, and multiple strategic acquisitions 2025 Second Quarter Key Financial Data | Metric | Amount/Ratio | QoQ Growth | YoY Growth | | :--------------------- | :---------- | :------------- | :------------- | | Sales | $498.7 million | 4.6% | 11.9% | | GAAP Diluted EPS | $1.43 | - | 43.0% | | Adjusted EBITDA | $57.3 million | 9.2% | 18.9% | | Adjusted EBITDA Margin | 11.5% | +0.5 pp | +0.7 pp | | Net Income | $23.6 million | 14.6% | 41.3% | | Operating Cash Flow | $18.6 million | - | 26.5% | | Free Cash Flow | $8.3 million | - | 40.6% | - As of June 30, 2025, the company held **$112.9 million** in cash[5](index=5&type=chunk) - Two acquisitions were completed this quarter, with another completed after the quarter ended[5](index=5&type=chunk) 2025 Second Quarter Sales and Operating Margins by Business Segment | Business Segment | Sales ($ million) | YoY Growth | Operating Margin | | :----------------------- | :------------- | :------------- | :--------- | | Service Center | $339.7 | 10.8% | 14.8% | | Innovative Pumping Solutions | $93.5 | 27.5% | 19.9% | | Supply Chain Services | $65.4 | -0.4% | 8.0% | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO David R. Little highlighted the effective execution of the company's growth strategy and business resilience, while CFO Kent Yee noted record sales and adjusted EBITDA margins, with plans for continued acquisitions in H2 2025 - CEO David R. Little stated that Q2 results reflect the execution of the company's growth strategy and the resilience and durability of DXP's business, expressing satisfaction with sequential and year-over-year sales growth and strong gross margins[4](index=4&type=chunk) - CFO Kent Yee noted that DXP achieved a 4.6% sequential and 11.9% year-over-year sales increase, reaching **$498.7 million**, with an adjusted EBITDA margin of **11.5%**, setting a new record[4](index=4&type=chunk) - The company plans to complete at least three to four acquisitions in the second half of 2025 to continue executing its growth strategy[4](index=4&type=chunk) - As of June 30, 2025, total debt was **$626.8 million**, with a secured leverage ratio (net debt to EBITDA) of **2.4:1.0**[7](index=7&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of DXP Enterprises, Inc., including its business model and details regarding the upcoming conference call for investors [About DXP Enterprises, Inc.](index=3&type=section&id=About%20DXP%20Enterprises%2C%20Inc.) DXP Enterprises, Inc. is a leading distributor of products and services, offering value-added and total cost savings solutions to industrial customers in North America and Dubai, focusing on innovative pumping solutions, supply chain services, and MROP services - DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added and total cost savings solutions to industrial customers in North America and Dubai[9](index=9&type=chunk) - The company offers innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production (MROP) services[9](index=9&type=chunk) - DXP's business segments include Service Centers, Innovative Pumping Solutions, and Supply Chain Services[9](index=9&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) DXP management will host a conference call on August 7, 2025, to discuss financial results, with investors able to access the webcast and presentation via the company's investor relations website - DXP Enterprises, Inc. management will host a conference call on August 7, 2025, at 10:30 AM Central Time to discuss the company's financial results[7](index=7&type=chunk) - The conference call webcast can be accessed via https://ir.dxpe.com[7](index=7&type=chunk)[8](index=8&type=chunk) - An online replay and a slide presentation highlighting the company's performance and key performance indicators will be available on the website after the call[8](index=8&type=chunk) [GAAP Financial Performance](index=5&type=section&id=GAAP%20Financial%20Performance) This section presents DXP's unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and segment data, prepared in accordance with GAAP [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) DXP achieved significant revenue and profit growth in Q2 and H1 2025, with substantial year-over-year increases in sales, gross profit, operating income, net income, and diluted earnings per share Consolidated Statements of Operations Key Data ($ thousand) | Metric | 2025 Q2 | 2024 Q2 | YoY Change (%) | 2025 H1 | 2024 H1 | YoY Change (%) | | :----------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | :----------- | | Sales | 498,682 | 445,556 | 11.9% | 975,251 | 858,191 | 13.6% | | Cost of Sales | 340,869 | 307,763 | 10.7% | 667,173 | 596,516 | 11.8% | | Gross Profit | 157,813 | 137,793 | 14.5% | 308,078 | 261,675 | 17.7% | | Operating Income | 45,986 | 37,352 | 23.1% | 86,501 | 66,483 | 30.1% | | Net Income | 23,612 | 16,693 | 41.3% | 44,201 | 28,025 | 57.7% | | Diluted Earnings Per Share | $1.43 | $1.00 | 43.0% | $2.67 | $1.66 | 60.8% | [UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, DXP's total assets and stockholders' equity increased, reflecting business expansion and improved financial health, despite a decrease in cash balance Consolidated Balance Sheets Key Data ($ thousand) | Metric | June 30, 2025 | Dec 31, 2024 | Change ($ thousand) | Change (%) | | :----------------------- | :------------- | :------------- | :-------- | :------- | | Cash | 112,930 | 148,320 | (35,390) | -23.9% | | Total Current Assets | 683,661 | 661,874 | 21,787 | 3.3% | | Total Assets | 1,412,394 | 1,349,494 | 62,900 | 4.7% | | Total Current Liabilities | 245,449 | 243,984 | 1,465 | 0.6% | | Total Liabilities | 944,302 | 926,706 | 17,596 | 1.9% | | Total DXP Enterprises, Inc. Stockholders' Equity | 468,092 | 422,788 | 45,304 | 10.7% | - As of June 30, 2025, total debt was **$626.8 million**[7](index=7&type=chunk) [SEGMENT DATA](index=7&type=section&id=SEGMENT%20DATA) In Q2 2025, DXP's Innovative Pumping Solutions and Service Center segments achieved strong sales and operating income growth, while Supply Chain Services experienced a slight sales decrease Sales by Business Segment ($ thousand) | Business Segment | 2025 Q2 | 2024 Q2 | YoY Change (%) | 2025 H1 | 2024 H1 | YoY Change (%) | | :----------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | :----------- | | Service Center | 339,731 | 306,516 | 10.8% | 666,806 | 594,952 | 12.1% | | Innovative Pumping Solutions | 93,540 | 73,377 | 27.5% | 179,722 | 135,592 | 32.5% | | Supply Chain Services | 65,411 | 65,663 | -0.4% | 128,723 | 127,647 | 0.8% | | **Total Sales** | **498,682** | **445,556** | **11.9%** | **975,251** | **858,191** | **13.6%** | Operating Income by Business Segment ($ thousand) | Business Segment | 2025 Q2 | 2024 Q2 | YoY Change (%) | 2025 H1 | 2024 H1 | YoY Change (%) | | :----------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | :----------- | | Service Center | 50,171 | 43,855 | 14.4% | 97,215 | 84,175 | 15.5% | | Innovative Pumping Solutions | 18,642 | 13,366 | 39.5% | 32,049 | 20,336 | 57.6% | | Supply Chain Services | 5,229 | 5,823 | -10.2% | 10,792 | 11,085 | -2.7% | | **Total Segment Operating Income** | **74,042** | **63,044** | **17.4%** | **140,056** | **115,596** | **21.1%** | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures such as EBITDA, Adjusted EBITDA, organic sales, and free cash flow, providing additional insights into DXP's performance [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) DXP uses non-GAAP metrics like EBITDA, Adjusted EBITDA, and free cash flow to supplement GAAP reporting, offering additional insights into operational performance, liquidity, and strategic execution by excluding non-cash and non-recurring items - EBITDA is defined as net income attributable to DXP Enterprises, Inc. plus interest, taxes, depreciation, and amortization[22](index=22&type=chunk) - Adjusted EBITDA is defined as EBITDA less stock-based compensation expense and all other non-cash expenses, adjustments, and non-recurring items[22](index=22&type=chunk) - Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment[27](index=27&type=chunk) - The company believes these non-GAAP measures provide additional information regarding operating performance, effectiveness of operating strategies, and liquidity, helping investors understand the business and evaluate strategic execution[11](index=11&type=chunk) [RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (EBITDA)](index=8&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20INFORMATION%20%28EBITDA%29) DXP's EBITDA and Adjusted EBITDA showed significant year-over-year and year-to-date growth in Q2 and H1 2025, reflecting improved operating performance and profitability EBITDA and Adjusted EBITDA Reconciliation ($ thousand) | Metric | 2025 Q2 | 2024 Q2 | YoY Change (%) | 2025 H1 | 2024 H1 | YoY Change (%) | | :--------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | :----------- | | EBIT | 31,596 | 23,003 | 37.4% | 58,769 | 38,559 | 52.4% | | EBITDA | 55,830 | 46,514 | 20.0% | 106,797 | 85,152 | 25.4% | | Adjusted EBITDA | 57,313 | 48,226 | 18.8% | 109,832 | 88,570 | 24.0% | | Operating Margin | 9.2% | 8.4% | +0.8 pp | 8.9% | 7.7% | +1.2 pp | | Net Income Margin | 4.7% | 3.7% | +1.0 pp | 4.5% | 3.3% | +1.2 pp | | EBITDA Margin | 11.2% | 10.4% | +0.8 pp | 11.0% | 9.9% | +1.1 pp | | Adjusted EBITDA Margin | 11.5% | 10.8% | +0.7 pp | 11.3% | 10.3% | +1.0 pp | [RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Organic Sales)](index=9&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20INFORMATION%20%28Organic%20Sales%29) DXP achieved strong organic sales growth in Q2 and H1 2025, indicating healthy core business expansion even after excluding acquisition contributions Organic Sales and Sales Per Business Day Reconciliation ($ thousand) | Metric | 2025 Q2 | 2024 Q2 | YoY Change (%) | 2025 H1 | 2024 H1 | YoY Change (%) | | :----------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | :----------- | | DXP Total Sales | 498,682 | 445,556 | 11.9% | 975,251 | 858,191 | 13.6% | | Acquisition Sales | 24,605 | 23,403 | 5.1% | 55,717 | 35,178 | 58.4% | | Organic Sales | 474,077 | 422,153 | 12.3% | 919,534 | 823,013 | 11.7% | | Business Days | 63 | 64 | -1.6% | 126 | 127 | -0.8% | | Sales Per Business Day | $7,916 | $6,962 | 13.7% | $7,740 | $6,757 | 14.5% | | Organic Sales Per Business Day | $7,525 | $6,596 | 14.1% | $7,298 | $6,480 | 12.6% | - Organic sales include sales from locations owned by the company for at least twelve months and acquired businesses[24](index=24&type=chunk) [RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (Free Cash Flow)](index=9&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20INFORMATION%20%28Free%20Cash%20Flow%29) DXP generated positive free cash flow in Q2 2025, with a significant year-over-year increase, demonstrating improved cash generation capability after capital expenditures Free Cash Flow Reconciliation ($ thousand) | Metric | 2025 Q2 | 2024 Q2 | YoY Change ($ thousand) | 2025 H1 | 2024 H1 | YoY Change ($ thousand) | | :----------------------- | :------------- | :------------- | :------------ | :----------- | :----------- | :------------ | | Net Cash from Operating Activities | 18,646 | 14,735 | 3,911 | 21,619 | 41,724 | (20,105) | | Less: Purchases of Property and Equipment | (10,346) | (8,825) | (1,521) | (30,260) | (11,719) | (18,541) | | Free Cash Flow | 8,300 | 5,910 | 2,390 | (8,641) | 30,005 | (38,646) | [Information Related to Forward-Looking Statements](index=4&type=section&id=Information%20Related%20to%20Forward-Looking%20Statements) This section outlines the nature of forward-looking statements within the report, emphasizing inherent risks and uncertainties, and disclaims any obligation to update such information - Certain information in this press release (and in the company's oral or written statements) constitutes forward-looking statements, protected by the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) - Forward-looking statements involve significant risks and uncertainties that could cause actual future results to differ materially from expectations, including but not limited to the effectiveness of management strategies, ability to integrate acquisitions, economic and business conditions, changes in government regulations, availability of materials and labor, and cyberattacks[12](index=12&type=chunk) - The company undertakes no obligation to update any forward-looking statements or information[12](index=12&type=chunk)
DXP Enterprises(DXPE) - 2025 Q2 - Earnings Call Transcript
2025-08-07 16:30
Financial Data and Key Metrics Changes - DXP Enterprises reported total sales for Q2 2025 of $498.7 million, reflecting an 11.9% year-over-year growth and a 4.7% sequential increase [9][19] - Adjusted EBITDA for Q2 was $57.3 million, representing an adjusted EBITDA margin of 11.5% [9][25] - Diluted earnings per share for Q2 was $1.43, up from $1.00 in the same quarter last year [25] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) led sales growth with a 27.5% year-over-year increase, while Service Centers grew by 10.8% year-over-year [10][20] - Supply Chain Services remained flat year-over-year, with a slight sequential growth of 3.3% [14][21] - The energy segment within IPS saw a significant year-over-year increase of 37.3% [10] Market Data and Key Metrics Changes - The DXP water platform achieved its eleventh consecutive quarter of sequential sales growth, reaching $48.7 million in Q2 [22] - Regions such as North and South Rockies, Ohio River Valley, and South Atlantic experienced year-over-year sales growth [22][23] Company Strategy and Development Direction - The company is focused on diversifying its business through new products, industries, and geographical expansions [6][16] - DXP continues to execute its acquisition strategy, having completed multiple acquisitions in the first half of 2025 [5][19] - The company aims to maintain adjusted EBITDA margins above 11% and is targeting 12% in the future [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment, citing a strong balance sheet and robust acquisition pipeline [9][30] - The backlog for energy-related projects is at an all-time high, indicating strong future revenue potential [11][21] - Management noted that while there are macroeconomic uncertainties, they are not seeing significant hesitance from customers regarding spending [38][39] Other Important Information - The company reported a working capital increase to $349 million, reflecting a 23.8 million increase from March [26] - Free cash flow for Q2 was $8.3 million, an increase from $5.9 million in the previous year [28] - DXP's acquisition pipeline remains active, with expectations to close three to four additional acquisitions in the second half of the year [29][30] Q&A Session Summary Question: Can you share daily sales trends by month for Q2 and Q3 thus far? - April sales were $7.81 million, May was $7.55 million, June was $8.37 million, and July is estimated at $7.25 million [35] Question: Will there be any significant margin differences between Q2 and Q3? - The company expects to continue benefiting from acquisitions that are accretive to margins, particularly in water and wastewater sectors [36] Question: Are customers hesitant to spend due to macro uncertainties? - Management indicated that they are not seeing significant hesitance in spending, with a strong backlog and bookings exceeding billings [39]
DXP Enterprises(DXPE) - 2025 Q2 - Earnings Call Presentation
2025-08-07 15:30
Financial Performance - Sales increased to $4987 million, a 119% year-over-year increase compared to Q2 2024, and a 46% sequential increase from Q1 2025[7] - Organic sales grew 123% year-over-year and 64% sequentially[7] - Net income for Q2 2025 was $236 million, compared to $167 million for Q2 2024 and $206 million for Q1 2025[7] - Adjusted EBITDA for Q2 2025 was $573 million compared to $482 million for Q2 2024 and $525 million for Q1 2025[7] - Adjusted EBITDA margin was 115%, 108%, and 110%, respectively[7] Cash Flow - Net cash provided by operating activities was $186 million for Q2 2025[19] - Free cash flow was $83 million for Q2 2025[19] Strategic Initiatives - The company closed one acquisition during Q2 2025 and one subsequent to quarter end[7] - The company has a flexible share repurchase program for opportunistic buybacks[24]
DXP Enterprises Q2 Earnings Preview - Why I Expect Another Beat
Seeking Alpha· 2025-08-06 13:00
Core Insights - The article emphasizes the importance of saving and investing wisely, advocating for a disciplined approach to personal finance and investment strategies [1] Group 1: Investment Philosophy - The company suggests saving 10% of income consistently, regardless of the amount, as a fundamental principle of financial health [1] - It recommends investing in sectors where one has expertise, rather than diversifying into unfamiliar areas without proper guidance [1] - The focus is on long-term investing rather than trading, with a strategy to hold investments until the original thesis is invalidated [1] Group 2: Personal Approach to Investing - The company highlights the importance of pursuing passions over purely financial gains, suggesting that long-term happiness can outweigh short-term financial benefits [1] - It mentions the experience of working in various sectors, including natural resources, TMT, consumers, industrials, and transportation, to inform investment decisions [1]
DXP Enterprises (DXPE) Ascends While Market Falls: Some Facts to Note
ZACKS· 2025-07-30 22:45
Company Performance - DXP Enterprises (DXPE) closed at $111.84, reflecting a +1.19% change from the previous day's closing price, outperforming the S&P 500's 0.13% loss [1] - Over the past month, DXP Enterprises shares have increased by 22.76%, while the Industrial Products sector and the S&P 500 gained 5.75% and 3.39%, respectively [1] Financial Estimates - The Zacks Consensus Estimates predict DXP Enterprises will report earnings of $5.3 per share and revenue of $0 million for the fiscal year, indicating a +17.52% change in earnings and no change in revenue from the previous year [2] Analyst Estimates - Recent changes to analyst estimates for DXP Enterprises are important as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - DXP Enterprises has a Forward P/E ratio of 20.85, which is lower than the industry average Forward P/E of 22.02, suggesting a valuation discount [6] Industry Ranking - The Manufacturing - General Industrial industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [6]
DXP Enterprises (DXPE) Outperforms Broader Market: What You Need to Know
ZACKS· 2025-07-22 22:51
Group 1 - DXP Enterprises (DXPE) closed at $99.71, marking a +1.38% move from the prior day, outperforming the S&P 500 which gained 0.06% [1] - Over the past month, shares of DXP Enterprises have appreciated by 17.36%, significantly exceeding the Industrial Products sector's gain of 6.94% and the S&P 500's gain of 5.88% [1] - The Zacks Consensus Estimates forecast earnings of $5.3 per share and revenue of $0 million for the entire year, indicating changes of +17.52% and 0%, respectively, compared to the previous year [2] Group 2 - Recent adjustments to analyst estimates for DXP Enterprises indicate a positive outlook, with positive revisions seen as a sign of optimism about the business [3] - The Zacks Rank system, which incorporates estimate changes, currently rates DXP Enterprises as 2 (Buy), reflecting a strong potential for stock performance [5] - DXP Enterprises has a Forward P/E ratio of 18.56, which is a discount compared to the industry average Forward P/E of 22.2, indicating potential value [6] Group 3 - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]
DXP Enterprises (DXPE) Stock Dips While Market Gains: Key Facts
ZACKS· 2025-07-16 22:51
Group 1 - DXP Enterprises (DXPE) closed at $97.23, down 2.13% from the previous trading session, underperforming the S&P 500 which gained 0.32% [1] - The stock has increased by 26.82% over the past month, outperforming the Industrial Products sector's gain of 6.49% and the S&P 500's gain of 4.51% [1] Group 2 - The upcoming earnings release is anticipated, with Zacks Consensus Estimates predicting earnings of $5.3 per share and revenue of $0 million, reflecting a year-over-year change of +17.52% for earnings and 0% for revenue [2] - Recent adjustments to analyst estimates indicate changing business trends, with positive revisions suggesting analyst optimism regarding DXP Enterprises' profitability [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows DXP Enterprises currently holds a Zacks Rank of 2 (Buy) [5] - The Forward P/E ratio for DXP Enterprises is 18.75, which is lower than the industry average of 21.85, indicating a valuation discount [6] Group 4 - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [6][7]
DXP Enterprises (DXPE) Exceeds Market Returns: Some Facts to Consider
ZACKS· 2025-07-10 22:51
Core Viewpoint - DXP Enterprises (DXPE) has shown strong stock performance, significantly outperforming both the S&P 500 and the Industrial Products sector over the past month, with a notable increase in share price and positive earnings expectations for the upcoming disclosure [1][2]. Company Performance - DXP Enterprises closed at $93.73, reflecting a +1.18% increase from the previous day, outperforming the S&P 500's daily gain of 0.28% [1] - Over the last month, the stock has increased by 15.49%, compared to the Industrial Products sector's gain of 5.67% and the S&P 500's gain of 4.37% [1]. Earnings Expectations - Analysts expect DXP Enterprises to report earnings of $5.3 per share and revenue of $0 million for the full year, indicating a +17.52% change in earnings from last year, while revenue is expected to remain unchanged [2]. Analyst Forecast Revisions - Recent revisions to analyst forecasts for DXP Enterprises are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3]. Zacks Rank and Valuation - DXP Enterprises currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5]. - The company has a Forward P/E ratio of 17.48, which is lower than the industry average of 22.45, suggesting that DXP Enterprises is trading at a discount compared to its peers [6]. Industry Context - The Manufacturing - General Industrial industry, to which DXP Enterprises belongs, has a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries, indicating strong performance relative to other sectors [6][7].
4 Stocks to Buy on Steady Rebound in Manufacturing Activity
ZACKS· 2025-07-07 13:16
Industry Overview - The U.S. manufacturing sector is showing signs of recovery after a prolonged downturn, with new orders for manufactured goods increasing by 8.2% in May compared to a revised 3.9% decline in April, and a year-over-year increase of 3.2% [3][4] - The rebound in manufacturing activity is supported by easing inflationary pressures and expectations of Federal Reserve rate cuts, which are anticipated to boost demand [1][6][11] Manufacturing Activity - The Institute of Supply Management's manufacturing PMI rose to 49 in June from 48.5 in May, indicating a continued contraction but a rebound from a six-month low [5][6] - Manufacturing activity accounts for 10.2% of the U.S. economy, highlighting its significance [5] Stock Recommendations - Four stocks from the manufacturing sector are recommended for investment: Allegion plc (ALLE), AptarGroup, Inc. (ATR), Broadwind, Inc. (BWEN), and DXP Enterprises, Inc. (DXPE), all of which have strong earnings growth prospects and Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2][11] Allegion plc (ALLE) - Allegion is a global provider of security products and solutions, with an expected earnings growth of 3.9% for the current year and a Zacks Rank 2 [8][9] AptarGroup, Inc. (ATR) - AptarGroup specializes in innovative dispensing and packaging solutions, with an expected earnings growth of 4.1% for the current year and a Zacks Rank 2 [12][13] Broadwind, Inc. (BWEN) - Broadwind is a precision manufacturer focused on clean tech, particularly in the U.S. wind energy sector, with an expected earnings growth of 60% for the current year and a Zacks Rank 2 [14][15] DXP Enterprises, Inc. (DXPE) - DXP Enterprises is a distributor providing innovative solutions to industrial customers, with an expected earnings growth rate of 17.5% for the current year and a Zacks Rank 2 [16][17]
Are You Looking for a Top Momentum Pick? Why DXP Enterprises (DXPE) is a Great Choice
ZACKS· 2025-06-30 17:00
Company Overview - DXP Enterprises (DXPE) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Price Performance - Over the past week, DXP Enterprises shares have increased by 6.92%, while the Zacks Manufacturing - General Industrial industry remained flat [6] - In the last month, shares rose by 6.51%, outperforming the industry's 4.32% [6] - Over the past quarter, shares have increased by 19.89%, and over the last year, they have gained 92.1%, compared to the S&P 500's increases of 8.73% and 13.86%, respectively [7] Trading Volume - The average 20-day trading volume for DXP Enterprises is 138,756 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for DXP Enterprises has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $5.28 to $5.30 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, DXP Enterprises is positioned as a solid momentum pick and is recommended for consideration [12]