Here's Why You Should Hold Lincoln Electric Stock Right Now

Zacks Investment Research | Nov 28, 2018 10:11PM ET

Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is likely to gain from improving end-markets, acquisitions, product launches, execution of the 2020 vision and strategy despite raw material inflation and weak European demand.

The company also outpaced the Zacks Consensus Estimate in two of the trailing four quarters, while coming in line in one. This resulted in an average positive earnings surprise of 1.56%. The company has an estimated long-term earnings growth rate of 13%.

The company, with a market capitalization of approximately $5.3 billion, currently carries a Zacks Rank #3 (Hold). Below, we briefly analyze the company's potential growth drivers and possible headwinds.

Factors Favoring Lincoln Electric

Positive Growth Projections: The Zacks Consensus Estimate for fiscal 2018 is currently pegged at $4.74, reflecting year-over-year growth of 25%. The same metric for fiscal 2019 is pegged at $5.39, projected growth of 13% above 2018 levels.

Price Performance: The stock has fallen around 7% over the past year, compared with the Zacks Investment Research

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Written By: Zacks Investment Research

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