- Is CECO Environmental Corp. (CECO) A Good Stock To Buy Now?
May 14, 2026
Is CECO a good stock to buy? We came across a bullish thesis on CECO Environmental Corp. on InfoArb Sheets’s Substack. In this article, we will summarize the bulls’ thesis on CECO. CECO Environmental Corp.'s share was trading at $87.78 as of May 5th. CECO’s trailing and forward P/E were 205.61 and 46.73 respectively according to Yahoo Finance.CoreWeave (CRWV) Climbs 22.6% on 'Buy' From Citigroup
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CECO Environmental is a diversified environmental solutions provider serving air, water, emissions control, and energy efficiency markets across power generation, natural gas, semiconductors, electronics, and industrial infrastructure, and in Q1 2026 it demonstrated execution with revenue rising to $205.9 million versus $176.7 million year over year and adjusted EPS expanding to $0.36 from $0.10, reflecting operating leverage in a project-driven model.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
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The company’s investment narrative is increasingly anchored in record demand visibility, with orders up 97 percent and a book-to-bill ratio of 2.2x, driving backlog above $1 billion and supporting a $7.3 billion sales pipeline that extends into multi-year power generation and industrial water opportunities.
While GAAP EPS was impacted by timing and non-cash items, adjusted EBITDA growth of 46 percent to $20.4 million highlights improving profitability dynamics as higher-margin projects flow through. Management also pointed to early-stage Thermon acquisition benefits, which is positioned to enhance growth, expand heat trace and thermal management exposure, and deliver $40 million in cost synergies with additional upside from cross-selling and product adjacency.
Although gross margins at 31 percent remain below long-term targets, management indicated a richer mix of recently booked orders and expected normalization as projects mature, supporting a potential margin re-rating. Free cash flow was temporarily negative due to working capital timing, but delayed collections already received in early Q2 reduce concern over structural weakness. AI-driven power demand, electrification, reshoring, CECO is positioned as a multi-year industrial growth compounder, where execution on backlog conversion, Thermon integration, margin expansion could drive rerating.
Previously, we covered a bullish thesis on Graco Inc. (GGG) by Stock Analysis Compilation in December 2024, which highlighted its high-margin fluid handling leadership, strong pricing power, durable parts-driven revenue base, and attractive valuation after cyclical weakness. GGG's stock price has depreciated by approximately 7.11% since our coverage. InfoArb Sheets shares a similar view but emphasizes CECO Environmental’s accelerating order momentum, backlog visibility, and Thermon-driven operating leverage.
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CECO Environmental Corp. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held CECO at the end of the fourth quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of CECO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CECO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
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- Is IDEX Corporation (IEX) A Good Stock To Buy Now?
May 13, 2026
Is IEX a good stock to buy? We came across a bullish thesis on IDEX Corporation on Valueinvestorsclub.com by angus309. In this article, we will summarize the bulls’ thesis on IEX. IDEX Corporation's share was trading at $214.93 as of May 1st. IEX’s trailing and forward P/E were 31.79 and 26.04 respectively according to Yahoo Finance.Critical Metals (CRML) Jumps 11% on International Expansion
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IDEX Corporation is a diversified industrial manufacturer specializing in highly engineered fluidics systems, precision components, and mission-critical products serving resilient end markets across industrial, life sciences, water, energy, and safety. Positioned as a steady compounder, the company benefits from a decentralized operating model and an 80/20 framework that concentrates resources on high-margin customers and products, reinforcing pricing power, operational discipline, and durable free cash flow generation.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Its portfolio spans Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products, with Health & Science emerging as the key long-term growth driver supported by secular tailwinds in semiconductors, pharmaceuticals, analytical instrumentation, and advanced water solutions.
After a period of weak organic growth and margin compression driven by cost inflation, higher SG&A, and restructuring activity, recent quarters indicate stabilization and early improvement, with gross margins remaining above 44% and net margins holding near 14%, suggesting a potential inflection in operating performance.
Strategic acquisitions such as Mott Corporation and Micro-LAM further enhance exposure to high-value filtration, applied materials science, and ultra-precision manufacturing, expanding addressable markets and strengthening long-term earnings power. The stock appears to be undergoing a valuation rerating as expectations reset and industrial demand stabilizes, creating upside if the improving operating trajectory continues.
A fair value around $235 per share implies meaningful upside if mid-single-digit organic growth is sustained alongside disciplined M&A and incremental margin expansion, with total growth potential reaching high single digits over time.
While end markets remain cyclical and exposed to industrial and technology spending cycles, IDEX’s niche positioning, critical-component nature, and diversified customer base provide resilience. Improving industrial activity, pricing discipline, and continued execution on acquisitions represent key catalysts that could further re-rate the stock higher over the medium term.
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Previously, we covered a bullish thesis on Graco Inc. (GGG) by Stock Analysis Compilation in December 2024, which highlighted premium fluid handling equipment, strong margins and pricing power from consumables and accessories. GGG's stock price has depreciated by approximately 6.51% since our coverage. angus309 shares a similar view but emphasizes IDEX Corporation’s broader diversification, 80/20 operating discipline, and acquisition-led growth across resilient industrial and life sciences end markets.
IDEX Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held IEX at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of IEX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IEX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
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- Zebra Technologies Beats Q1 Earnings Estimates, Raises 2026 Outlook
May 12, 2026
Zebra Technologies Corporation ZBRA reported first-quarter 2026 adjusted earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.21. The bottom line increased 18.2% from $4.02 per share reported in the year-ago quarter.
Total revenues of $1.50 billion surpassed the consensus estimate of $1.47 billion. The top line increased 14.3% year over year, driven by broad-based growth across segments and regions. Consolidated organic net sales increased 4.3% year over year.
ZBRA’s Segmental Performance
Effective from the fourth quarter of 2025, the company started reporting under two segments, namely Connected Frontline and Asset Visibility & Automation.
Revenues from the Connected Frontline segment rose 20.6% year over year to $825 million. Organic net sales increased 3.8%.
The Asset Visibility & Automation segment’s revenues totaled $670 million, up 7.4% year over year. Organic net sales increased 4.8%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote
ZBRA’s Margin Profile
In the first quarter of 2026, Zebra Technologies’ cost of sales totaled $753 million, up 13.6% year over year. Total operating expenses increased 17.1% year over year to $527 million.
The company reported net income of $135 million compared with $136 million in the year-ago quarter. Adjusted net income increased to $235 million from $208 million reported in the prior-year quarter.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $114 million at the end of the first quarter compared with $125 million at the end of 2025. Long-term debt totaled $2.39 billion compared with $2.36 billion at the end of 2025.
In the first three months of 2026, Zebra Technologies generated net cash of $176 million in operating activities compared with $178 million in the year-ago period. The company incurred capital expenditure of $13 million in the same time frame. Free cash flow amounted to $163 million compared with $158 million in the prior-year period.
ZBRA’s Guidance
For the second quarter of 2026, Zebra Technologies expects net sales growth in the band of 14-17% year over year. The guidance includes an approximately 10.5 point favorable impact from acquisitions and foreign currency.
Adjusted EBITDA margin is anticipated to be a little higher than 21% in the second quarter. Adjusted earnings per share are expected to be in the band of $4.20-$4.50.
For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $18.30-$18.70 per share compared with $17.70-$18.30 anticipated earlier. Adjusted EBITDA margin is anticipated to be approximately 22% for the year. ZBRA currently expects net sales growth of 10-14% year over year. It expects free cash flow to be at least $900 million.
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ZBRA’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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- 2 Cash-Producing Stocks with Solid Fundamentals and 1 We Turn Down
May 12, 2026
Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are two cash-producing companies that reinvest wisely to drive long-term success and one that may face some trouble.
One Stock to Sell:
Graco (GGG)
Trailing 12-Month Free Cash Flow Margin: 28.1%
Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Are We Hesitant About GGG?
Annual revenue growth of 2.1% over the last two years was below our standards for the industrials sector Earnings per share were flat over the last two years and fell short of the peer group average Diminishing returns on capital suggest its earlier profit pools are drying up
Graco’s stock price of $78.78 implies a valuation ratio of 25.2x forward P/E. Read our free research report to see why you should think twice about including GGG in your portfolio, it’s free.
Two Stocks to Watch:
MediaAlpha (MAX)
Trailing 12-Month Free Cash Flow Margin: 3.5%
Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha (NYSE:MAX) operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.
Why Are We Fans of MAX?
Annual revenue growth of 69.6% over the last two years was superb and indicates its market share increased during this cycle Estimated revenue growth of 10.8% for the next 12 months implies its momentum over the last two years will continue Earnings per share have massively outperformed its peers over the last two years, increasing by 410% annually
At $9.10 per share, MediaAlpha trades at 6.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Vitesse Energy (VTS)
Trailing 12-Month Free Cash Flow Margin: 23.9%
Taking a hands-off approach to energy production, Vitesse Energy (NYSE:VTS) owns non-operated stakes in oil and natural gas wells primarily in North Dakota and Montana's Williston Basin.
Why Is VTS Interesting?
Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 80% Robust free cash flow margin of 24.4% gives it many options for capital deployment
Vitesse Energy is trading at $18.06 per share, or 37x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
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Stocks We Like Even More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
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- MIDD Q1 Earnings Beat Estimates on Food Processing Strength
May 8, 2026
The Middleby Corporation MIDD reported first-quarter 2026 adjusted earnings of $2.16 per share, which beat the Zacks Consensus Estimate of $1.94. The bottom line increased 15.5% year over year.
Net sales of $839.9 million topped the consensus estimate of $777.1 million and increased 15% year over year. The upside was driven by robust backlog conversion in the Food Processing segment, where backlog reached a record $416 million. MIDD’s organic sales increased 11.9%. Acquisitions increased sales by 1%, while movements in foreign currencies had a positive impact of 2%.
Middleby Sees Strength Across Segments
Effective from the fourth quarter of 2025, the company started reporting under two segments.
Sales from the Commercial Foodservice segment (representing 73.3% of net sales) were $615.5 million, up 9.4% year over year. Organic sales increased 8.1%. Foreign-currency translation had a favorable impact of 1.3%.
Sales from the Food Processing segment (26.7%) totaled $224.4 million, up 33.7% year over year. Organic sales increased 25% year over year. Acquisitions boosted sales by 4.5%, while foreign currency movements had a favorable impact of 4.2%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Middleby’s Margin Profile
Middleby’s cost of sales increased 18% year over year to $516.7 million. Gross profit increased 10.5% to $323.2 million. The gross margin was 38.5%, down 150 basis points (bps) from the year-ago quarter.
Selling, general and administrative expenses increased 16.4% year over year to $188.3 million. Operating income increased 3% year over year to $133.4 million. Operating margin decreased 250 bps to 15.9%.
Adjusted EBITDA increased 11.8% year over year to $180.6 million. Adjusted EBITDA margin decreased 60 bps to 21.5%.
Balance Sheet and Cash Flow
Exiting the first quarter of 2026, Middleby had cash and cash equivalents of $177.1 million compared with $222.2 million at the end of 2025. Long-term debt was $1.83 billion at the end of the first quarter compared with $2.13 billion at 2025-end.
In the first three months of 2026, Middleby generated net cash of $87.8 million from operating activities compared with $137.3 million in the year-ago quarter.
In the first three months, its capital expenditure totaled $7.9 million compared with $26.5 million in the year-ago quarter. Free cash flow was $79.9 million compared with $110.8 million in the year-ago quarter.
Middleby Advances Portfolio Transformation
Middleby completed the sale of a 51% stake in its Residential Kitchen business during the quarter. The transaction generated net cash proceeds of $565 million, while the company retained a 49% ownership interest in the joint venture.
The company expects the planned Food Processing spin-off to close on July 6, 2026. Management stated that the separation will create two focused, standalone businesses with distinct growth and capital allocation strategies.
Story Continues
MIDD Raises 2026 Outlook
For the second quarter of 2026, Middleby expects total sales in the range of $815-$850 million. Adjusted earnings are projected between $2.27 and $2.39 per share.
Commercial Foodservice sales are expected in the range of $600-$620 million, while Food Processing sales are projected between $215 million and $230 million. Adjusted EBITDA is anticipated between $180 million and $192 million.
For full-year 2026, the company raised guidance and now expects total sales between $3.36 billion and $3.44 billion compared with prior expectations of $3.27-$3.36 billion.
Adjusted EBITDA is projected between $758 million and $790 million, while adjusted earnings are expected in the range of $9.54-$9.70 per share. Management expects continued benefits from pricing actions, backlog execution and ongoing share repurchases despite tariff and inflationary pressures.
MIDD’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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This article originally published on Zacks Investment Research (zacks.com).
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- What to Note Ahead of Plug Power's Q1 Earnings Release?
May 8, 2026
Plug Power Inc. PLUG is scheduled to release first-quarter 2026 results on May 11, after market close.
The company has a mixed earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed the mark in two, the average surprise being 9%.
Let’s see how things have shaped up for Plug Power this earnings season.
Factors to Note Ahead of PLUG’s Q1 Results
Revenues from services performed on fuel cell systems and related infrastructure are expected to have grown, driven by an increase in the sales of service parts, a surge in pricing of service agreements and an improvement in the scope of services provided to certain customers. The Zacks Consensus Estimate for services performed on fuel cell systems and related infrastructure net revenues is pegged at $22.7 million, implying a 34.3% increase from the year-ago number.
Increased fuel prices and a rise in the number of customer sites with fuel contracts are expected to have aided revenues from fuel delivered to customers and related equipment in the first quarter. The Zacks Consensus Estimate for fuel delivered to customers and related equipment net revenues is pegged at $30.8 million, implying a 4.4% increase from the year-ago number.
Revenues from Power Purchase Agreements (PPAs) are expected to have been buoyed by an increase in pricing of the PPAs. The Zacks Consensus Estimate for net revenues from the same is $27.4 million, indicating an increase of 18.1% from the prior-year quarter.
However, a decline in revenues related to hydrogen site installations, liquefiers and cryogenic equipment is expected to have adversely impacted the sales of equipment, related infrastructure and others. However, an increase in demand for electrolyzers is expected to have provided some relief. The Zacks Consensus Estimate for net revenues from the sale of equipment, related infrastructure and others is $64 million, in line with the prior-year quarter.
Rising costs and operating expenses have been concerns for Plug Power for some time now. The impacts of high labor and raw material costs are likely to have affected its margin and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.
Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Amid this backdrop, the Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $142.5 million, indicating an increase of 6.6% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at a loss of nine cents per share compared with a loss of 21 cents per share in the year-ago quarter.
Story Continues
Plug Power, Inc. Price and EPS Surprise
Plug Power, Inc. price-eps-surprise | Plug Power, Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for PLUG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: PLUG has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of nine cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: PLUG presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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- AXON Q1 Earnings Miss Estimates on Tariff-Driven Margins
May 7, 2026
Axon Enterprise, Inc. AXON reported first-quarter 2026 adjusted earnings of $1.61 per share, up 9.5% year over year. However, the figure missed the Zacks Consensus Estimate of $1.66.
Total revenues were $807.3 million, up 33.7% year over year and ahead of the consensus estimate of $781 million.
AXON’s Q1 Business Segment Performance
Effective first-quarter 2025, AXON realigned its business segments. The company now reports results under two business segments, namely Connected Devices and Software & Services.
Connected Devices: The segment’s revenues increased 32.8% year over year to $452.8 million, driven by strong demand for TASER 10 devices, Axon Body 4, counter-drone products and fleet systems, along with continued momentum in Platform Solutions. However, the adjusted gross margin decreased year over year to 50.4% from 52.8%.
Software & Services: The segment’s revenues rose 34.9% year over year to $354.5 million, driven by new users and increased adoption of premium software offerings by existing customers. However, the adjusted gross margin decreased to 75.8% from 77.7% in the year-ago period.
Axon Enterprise, Inc Price, Consensus and EPS Surprise
Axon Enterprise, Inc price-consensus-eps-surprise-chart | Axon Enterprise, Inc Quote
AXON Gross Margin Reflects Tariffs and Mix Shift
Axon’s cost of sales increased 38.7% year over year to $330.1 million. Selling, general and administrative expenses were $259 million, up 15.9% year over year.
Total operating expenses climbed 19.6% year over year to $448 million. The adjusted gross margin decreased to 61.6% from 63.6% in the year-ago period, owing to an increase in global tariffs and higher professional services costs.
AXON’s Balance Sheet & Cash Flow
At the end of first-quarter 2026, Axon had cash and cash equivalents of $458.9 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $97.2 million compared with $98.9 million at 2025-end.
In the first quarter of 2026, the company used net cash of $31.5 million in operating activities against $25.8 million net cash generated in the prior-year period.
Adjusted free cash outflow was $54.1 million in the first quarter of 2026 against an inflow of $2.7 million in the prior-year period.
Axon Raises 2026 Revenue Outlook
Management raised its full-year revenue outlook to 30-32% annual growth, up from 27-30% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across TASER, body-worn cameras, counter-drone, real-time operations and AI-enabled offerings.
Axon also expects full-year operating cash flow of more than $600 million and free cash flow of approximately $450 million. Also, capital expenditures are now projected at $160-$190 million, down from the prior $185-$215 million range.
Story Continues
AXON Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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Graco Inc. (GGG) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Kennametal Q3 Earnings Beat Estimates on Pricing and Volume
May 7, 2026
Kennametal Inc. KMT reported adjusted earnings of 77 cents per share for the third quarter of fiscal 2026 (ended March 31, 2026), up 63.8% year over year. The bottom line beat the Zacks Consensus Estimate of 68 cents.
KMT’s Revenue Details
Sales were $592.6 million, up 22.0% from the year-ago quarter. The top line topped the Zacks Consensus Estimate of $567 million. The quarter benefited from stronger volume and pricing.
Organic sales rose 19% year over year. Foreign currency translation had a positive impact of 5% on sales, while divestitures had an adverse impact of 2%.
Regionally (in constant currency), growth was strongest in the Americas (up 27%) and Asia Pacific (up 25%), while EMEA increased 2%. End-market performance also skewed positive, led by Earthworks (up 43%), Energy (up 28%) and Aerospace & Defense (up 23%).
Kennametal’s Segment Highlights
Kennametal reports results under two business segments, namely Metal Cutting and Infrastructure. Its segmental performance for the fiscal third quarter is briefly discussed below:
The Metal Cutting segment’s revenues of $358 million increased 18% year over year. Organic revenues grew 12% and currency exchange had a positive impact of 6% year over year.
The Infrastructure segment’s revenues totaled $235 million, up 29% year over year. Organic revenues increased 30% and currency exchange had a positive impact of 4% year over year. This was partially offset by the negative impact of 5% from divestitures.
KMT’s Margin Profile
Kennametal’s cost of goods sold increased 16.5% year over year. Gross profit rose 33.0% year over year to $208.0 million, while the margin increased 300 basis points (bps) to 35.1%. Operating expenses were $124.0 million, up 19.2% year over year.
Operating income increased 79.5% year over year to $79.4 million. Operating margin increased 430 bps year over year to 13.4%. The results were driven by favorable impacts of pricing and tariff surcharges, higher sales and production volume and restructuring savings, offset by increased compensation costs and general inflation.
Interest expenses were $6.3 million, up 0.8% from the year-ago quarter’s figure. The adjusted effective tax rate was 23.1%.
Kennametal’s Cash Flow and Balance Sheet
While exiting the fiscal third quarter, Kennametal’s cash and cash equivalents were $106.9 million compared with $140.5 million at the end of fiscal 2025. Long-term debt was $597.4 million compared with $596.8 million at the end of fiscal 2025.
In the first nine months of fiscal 2026, Kennametal generated net cash of $69.7 million in operating activities compared with $129.7 million in the previous fiscal year’s comparable period. Capital invested in purchasing property, plant and equipment was $53.7 million, down 20.5% from $67.5 million in the prior fiscal year period. Free operating cash flow was $18 million compared with $63 million in the previous fiscal year’s period.
KMT paid a dividend of $45.6 million and repurchased shares worth $10.1 million.
Story Continues
KMT’s Dividend Update
Kennametal announced that its board of directors approved a quarterly cash dividend of 20 cents per share to its shareholders of record as of May 12, 2026. The disbursement will be made on May 26.
KMT’s Outlook and Capital Allocation
KMT has updated its fiscal 2026 (ending June 2026) outlook. The company currently anticipates sales to be in the range of $2.33-$2.35 billion. Adjusted earnings per share are expected to be in the range of $3.75-$4.00. Free operating cash flow is projected to be approximately (30)% of adjusted net income, while capital spending is expected to be approximately $85 million.
For fiscal 2026, Kennametal expects interest expense of about $25 million and an adjusted effective tax rate of about 25%. The outlook also assumes restructuring savings of about $30 million, with share repurchases paused.
KMT’s Zacks Rank
The company currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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This article originally published on Zacks Investment Research (zacks.com).
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- Is Graco (GGG) Offering Opportunity After Recent Share Price Softness?
May 7, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
If you are wondering whether Graco at around US$80 a share is priced for opportunity or already fully valued, you will find that the answer depends heavily on which valuation lens you use. The stock has returned 1.0% over the last week, while the 30 day return is a 4.9% decline and the year to date return is a 2.8% decline, with the 1 year return at a 0.7% decline and longer term 3 and 5 year returns at 6.8% and 15.0% respectively. Recent news coverage has largely focused on Graco's role in the wider machinery and industrial equipment space, including how investors are weighing the stock against peers with different growth profiles and balance sheets. This context matters because it can shape how the market treats short term share price moves, whether as noise or as an early signal that expectations are changing. Graco currently holds a value score of 3/6. This reflects being assessed as undervalued on half of the six checks. The sections that follow will walk through the main valuation methods behind that score, then turn to a broader way of thinking about what the stock is really worth.
Find out why Graco's -0.7% return over the last year is lagging behind its peers.
Approach 1: Graco Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting future cash flows and discounting them back to today using a required return. It aims to answer what the current value of all those future dollars is in present terms.
For Graco, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is $571.6 million. Analysts provide explicit forecasts up to 2028, with free cash flow for that year projected at $692.0 million, and Simply Wall St extrapolates further out to 2035. All figures are in $ and remain below $1b, so are considered in millions.
Discounting these projected cash flows back to today gives an estimated intrinsic value of $83.70 per share. Against a share price around $80, this implies the stock trades at about a 4.0% discount, which points to only a modest gap between price and the DCF estimate.
Result: ABOUT RIGHT
Graco is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.GGG Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Graco.
Story Continues
Approach 2: Graco Price vs Earnings
For profitable companies, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, which is often the anchor for long term returns. A higher or lower P/E usually reflects what the market expects for future growth and how much risk investors see in those earnings.
Graco currently trades on a P/E of 25.8x. That sits below the Machinery industry average of about 28.0x and also below the peer group average of 28.4x, so the stock is priced at a lower multiple than many similar companies. On the surface, that might suggest some relative value, but simple comparisons can miss important context.
Simply Wall St’s Fair Ratio for Graco is 22.7x. This is a proprietary estimate of what a reasonable P/E could be when factoring in elements such as earnings growth profile, industry, profit margins, market cap and specific risks. Because it adjusts for these company level drivers, the Fair Ratio can offer a more tailored yardstick than a broad industry or peer average. With the actual P/E of 25.8x sitting above the Fair Ratio of 22.7x, Graco looks somewhat expensive on this metric.
Result: OVERVALUEDNYSE:GGG P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.
Upgrade Your Decision Making: Choose your Graco Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives are that tool, because they let you set out a clear story for Graco, link that story to specific forecasts for revenue, earnings and margins, and then turn those assumptions into your own fair value. You can then compare this with the current share price to decide whether the stock looks attractive or stretched.
On Simply Wall St, Narratives sit within the Community page and are used by millions of investors as an accessible way to plug real world views into live models. These views might include how quickly fluid management systems like Pulse Mobile might be adopted or how much tariff risk matters. The models refresh when new earnings, buybacks or news are released.
For Graco, one investor might build a Narrative close to the most bullish analyst view with a fair value around US$103 per share, based on expectations for higher margins and a stronger P/E. Another might lean toward the more cautious end near US$82 per share. Seeing where your own fair value falls in that US$82 to US$103 range can help you decide how the current price lines up with your expectations.
Do you think there's more to the story for Graco? Head over to our Community to see what others are saying!NYSE:GGG 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include GGG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Graco Reaffirms Long-Term Growth Algorithm, Expands M&A Contribution Target, RBC Says
May 6, 2026
Graco (GGG) reaffirmed its through-cycle long-term growth algorithm at its investor day, with its ne
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