Confused? Buy or Sell in volatile market – Analyst report Lincoln Electric (NASDAQ:LECO)

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Earnings results for Lincoln Electric (NASDAQ:LECO)

Lincoln Electric Holdings, Inc. is expected* to report earnings on 10/27/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.79. The reported EPS for the same quarter last year was $1.09.

Lincoln Electric last posted its earnings results on July 27th, 2020. The industrial products company reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.45. The company had revenue of $590.70 million for the quarter, compared to analysts’ expectations of $556.14 million. Its revenue was down 24.0% on a year-over-year basis. Lincoln Electric has generated $4.70 earnings per share over the last year and currently has a price-to-earnings ratio of 28.9. Lincoln Electric has confirmed that its next quarterly earnings report will be published on Tuesday, October 27th, 2020.

Analyst Opinion on Lincoln Electric (NASDAQ:LECO)

7 Wall Street analysts have issued ratings and price targets for Lincoln Electric in the last 12 months. Their average twelve-month price target is $108.25, predicting that the stock has a possible upside of 5.38%. The high price target for LECO is $120.00 and the low price target for LECO is $90.00. There are currently 3 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Lincoln Electric has received a consensus rating of Buy. The company’s average rating score is 2.57, and is based on 4 buy ratings, 3 hold ratings, and no sell ratings. According to analysts’ consensus price target of $108.25, Lincoln Electric has a forecasted upside of 5.4% from its current price of $102.72. Lincoln Electric has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Lincoln Electric (NASDAQ:LECO)

Lincoln Electric pays a meaningful dividend of 1.86%, higher than the bottom 25% of all stocks that pay dividends. Lincoln Electric has only been increasing its dividend for 1 years. The dividend payout ratio of Lincoln Electric is 41.70%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Lincoln Electric will have a dividend payout ratio of 44.24% next year. This indicates that Lincoln Electric will be able to sustain or increase its dividend.

Insiders buying/selling: Lincoln Electric (NASDAQ:LECO)

In the past three months, Lincoln Electric insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $1,625,413.00 in company stock. Only 3.60% of the stock of Lincoln Electric is held by insiders. 74.58% of the stock of Lincoln Electric is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Lincoln Electric (NASDAQ:LECO

Earnings for Lincoln Electric are expected to grow by 22.38% in the coming year, from $3.62 to $4.43 per share. The P/E ratio of Lincoln Electric is 28.85, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.34. The P/E ratio of Lincoln Electric is 28.85, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 31.06. Lincoln Electric has a PEG Ratio of 2.78. PEG Ratios above 1 indicate that a company could be overvalued. Lincoln Electric has a P/B Ratio of 7.67. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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