LB Foster Up To Hold On Strong Growth Moves, Risks Exist
Zacks Investment Research | Oct 12, 2016 08:59AM ET
On Oct 11, 2016, LB Foster Co. (NASDAQ:FSTR) was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #5 (Strong Sell). Going by the Zacks model, companies with a Zacks Rank #3 are likely to perform in line with the broader market over the next few quarters.
Why on Hold?
LB Foster has been boosting its top line and profitability on the back of improved bookings and backlog. The company has been steadily widening its margin by reducing operating costs on the back of its Enterprise Resource Planning ('ERP') system. LB Foster intends to generate $1 million in annualized savings benefiting from its strategic cost-saving initiatives.
However, irrespective of these favorable bullish aspects, the Zacks Consensus Estimate for the company has been revised downward for both 2016 and 2017. This reflects analysts’ cautious view on the stock.
FOSTER LB CO Price and Consensus
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