In a recent report issued by Zacks Investment Research on Monday, Zacks announced that it was upgrading the rating of RBC Bearings (NASDAQ: ROLL) from “sell” to a “hold” rating.
The industrial products company’s stocks currently have a target price of $132.00, according to analysts specializing on NASDAQ: ROLL. Zacks also increased its target price for this company by 4.22% than its previous close.
Zacks Makes Estimate Analysis Of NASDAQ: ROLL
According to Zacks Investment Research, this company is poised to grow more in the recent future. Being an industrial products company, it can gain considerably from solid backlog and defense business. Zacks estimates for NASDAQ: ROLL’s earnings for the next fiscal quarter stands at $431.9 million. Apart from its performance in the first quarter of this year, ROLL’s performance is likely to improve in the second quarter of 2020, according to Zacks.
However, the last three months haven’t been favorable for the company. The pandemic has affected its operations, seriously bringing down the overall performance. Zacks mentions that NASDAQ: ROLL’s is also likely to underperform in the upcoming fiscal quarters.
Zacks report mentions that the estimate for the second fiscal quarter ranges from $148 to $152 million. This suggests a potential decline in the year-over-year performance as the earnings in the same quarter previous year was reported to be $181.9 million.
The quarterly earnings for the previous fiscal quarter was released by the company on the 6th of August. The earnings stood at $0.91 EPS for that quarter. This was opposed to the general consensus on the estimated earnings at $0.87. The company’s return on equity also stood at 10.82% along with the net margin of 16.86%. The expected revenue for the firm was marked at $152.72 million but it made $156.49 million for that quarter. During the same time previous year, the firm’s EPS was $1.23. This was 14.3% down based on a year-over-year calculation.
Consensus On RBC Bearings’ “Hold” Rating
NASDAQ: ROLL has recently been the subject of a lot of reports by research analysts. Some such as the Royal Bank of Canada, BidaskClub, Alembic Global Advisors, SunTrust Banks, William Blair and so on have posted reports on this firm over the last few months.
RBC Bearings was recently voted to an “overweight” rating from the earlier “neutral” rating by the Royal Bank of Canada on August 10. BidaskClub degraded the rating from “sell” to “strongly sell” on September 2. On August 7, William Blair reissued the rating of “outperform” to the NASDAQ: ROLL. SunTrust Banks gave out a “sell” rating to RBC Bearings. Plus, it also marked its price objective at $85.00 on July 15.
Thus, the recent consensus regarding RBC Bearings stands at a “hold” rating and the consensus on the target price stands at $125.25. Several hedge funds have also been involved in buying and selling of NASDAQ: ROLL shares recently.