Donaldson Rolls Out New Rating System For Its Turbo Filters
Zacks Investment Research | Dec 04, 2018 03:46AM ET
Donaldson Company, Inc. (NYSE:DCI) recently developed a more efficient and easier approach for the gas turbine system operators to select the suitable replacement air filters. Henceforth, each of the company’s Turbo-Tek Cartridge Filters will be fitted with a unique rating system that will aid in the filter selection process.
Inside the Headlines
Notably, the gas turbine inlet air filter selection process is extremely confusing and complex owing to the abundance of industry ratings. However, Donaldson’s newfangled rating system is likely to alleviate the issue going forward. It is an unique 0-5 point rating scale that gauges watertightness (W), efficiency (Er) and pulse recovery rate (P) for all types of its Turbo-Tek Cartridge Filters.
Er will be representing the percentage of particulates confined from incoming air. W rating will indicate the filter’s water ingress resistance capacity. Meanwhile, the P rating will show how readily the peak recital returns post pulse cleaning a dust load.
The company’s rating system was prepared after several laboratory tests and aids in quantifying pulse recovery rate and watertightness of the filters, in turn making selection easier for the operators. Donaldson noted that the operators will be able to power their gas turbine system’s more cost effectively driven by the convenience of the filter selection process.
Our Take
Strength in major businesses (like Aerospace and Defence, Filtration Solutions and Special Applications), strategic innovation investments, ongoing pricing initiatives and diligent cost cutting moves is likely to bolster Donaldson’s near-term competency. Over the past month, this Zacks Rank #3 (Hold) has rallied 5.8%, outperforming 1.4% growth recorded by the industry it belongs to.
However, material price inflation (on account of tariffs imposed over certain U.S. imports) and flaring up freight charges are both predicted to hurt the company’s gross profit by nearly $30 million in fiscal 2019 (ending July 2019). Further, weakening Gas Turbine Systems business remains a major cause of concern. The aforementioned rating system introduction might give a boost to this business but scarcity of large turbine projects might continue to weigh on performance going forward.
Stocks to Consider
Get The News You Want
Some better-ranked stocks within the Zacks Industrial Products sector are listed below:
ARC Document Solutions, Inc. (NYSE:ARC) sports a Zacks Rank #1 (Strong Buy). The company has pulled off a positive average earnings surprise of 133.33% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here .
Energy Recovery, Inc. (NASDAQ:ERII) carries a Zacks Rank #2 (Buy). The company has delivered a positive average earnings surprise of 204.17% in the past four quarters.
Applied Industrial Technologies, Inc. (NYSE:AIT) also carries a Zacks Rank of 2. The company has recorded a positive average earnings surprise of 11.67% in the past four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.