Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: DXP Enterprises (DXPE) Analysis - DXP Enterprises (DXPE) has shown a four-week price change of 0.7%, indicating growing investor interest and positioning it well for momentum investing [4] - Over the past 12 weeks, DXPE's stock has gained 2.8%, with a beta of 1.6, suggesting it moves 60% more than the market in either direction, indicating strong momentum [5] - DXPE has a Momentum Score of A, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DXPE earning a Zacks Rank 2 (Buy), as increased analyst interest typically drives stock prices higher [7] - DXPE is trading at a Price-to-Sales ratio of 0.47, indicating it is undervalued, as investors pay only 47 cents for each dollar of sales, providing significant room for growth [7] Group 4: Additional Investment Opportunities - Besides DXPE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a ...

DXP Enterprises, Inc. (NASDAQ:DXPE) Q2 2024 Earnings Conference Call August 9, 2024 11:30 AM ET Company Participants Kent Yee - Chief Financial Officer David Little - Chairman & Chief Executive Officer Conference Call Participants Max Kane - Stephens Operator Thank you for standing by. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprise's Second Quarter 2024 Earnings Release and Conference Call. All lines have been placed in mute ...

Financial Performance - For the six months ended June 30, 2024, DXP reported total sales of approximately $858.2 million, a slight increase from $852.3 million in the same period of 2023, representing a growth of about 0.9%[63] - Organic sales for the same period were approximately $823.0 million, down from $825.9 million in 2023, indicating a decrease of about 0.2%[63] - The Service Centers segment generated sales of $594.9 million for the six months ended June 30, 2024, compared to $619.6 million in 2023, reflecting a decline of approximately 4.0%[63] - The Innovative Pumping Solutions segment saw sales increase to $135.6 million for the six months ended June 30, 2024, up from $99.5 million in 2023, marking a significant growth of approximately 36.3%[63] - The Supply Chain Services segment reported sales of $127.6 million, a decrease of approximately 4.2% compared to $133.2 million in the same period of 2023[72] - Sales for the three months ended June 30, 2024 increased by $17.5 million, or 4.1%, to approximately $445.6 million from $428.0 million for the prior year's corresponding period[75] - Innovative Pumping Solutions segment sales increased by $25.3 million, or 52.7%, for the three months ended June 30, 2024, compared to the prior year's corresponding period[77] - For the six months ended June 30, 2024, sales increased by $5.9 million, or 0.7%, to approximately $858.2 million from $852.3 million for the prior year's corresponding period[81] Profitability Metrics - Gross profit for the six months ended June 30, 2024, was $261.7 million, compared to $256.9 million in 2023, resulting in a gross profit margin of 30.5%[63] - EBITDA for the six months ended June 30, 2024, was $85.2 million, down from $87.1 million in 2023, with an EBITDA margin of 9.9%[63] - Adjusted EBITDA for the same period was $88.6 million, slightly up from $88.4 million in 2023, with an adjusted EBITDA margin of 10.3%[63] - Net income for the three months ended June 30, 2024 was $16.7 million, or 3.7% of sales, down from $19.1 million, or 4.5% of sales, in the prior year's corresponding period[75] - Operating income for the six months ended June 30, 2024 decreased by $6.4 million, or 8.8%, to $66.5 million from $72.9 million in the prior year's corresponding period[86] - Net income attributable to DXP Enterprises, Inc. for Q2 2024 was $16.7 million, a decrease of 12.0% from $19.1 million in Q2 2023[91] - Adjusted EBITDA for Q2 2024 was $48.2 million, up 4.1% from $45.3 million in Q2 2023, with an Adjusted EBITDA Margin of 10.8%[91] Cash Flow and Liquidity - Free cash flow for the six months ended June 30, 2024, was $30.0 million, compared to $18.4 million in 2023, indicating an increase of approximately 63.0%[63] - Cash provided by operating activities for the six months ended June 30, 2024, was $41.7 million, up from $24.0 million in the prior year[97] - Free Cash Flow for the six months ended June 30, 2024, was $30.0 million, compared to $18.4 million for the same period in 2023, indicating a significant increase[93] - As of June 30, 2024, the company had available cash of $49.9 million and credit facility availability of $131.4 million, with no borrowings on the ABL Revolver[94] - The Fixed Charge Coverage Ratio as of June 30, 2024, was 1.39 to 1.00, indicating compliance with financial covenants[102] - The Secured Leverage Ratio as of June 30, 2024, was 2.64 to 1.00, below the maximum threshold of 5.50 to 1.00 set for the fiscal quarter[102] - The company believes it has adequate funding and liquidity to meet its normal working capital needs over the next twelve months[106] Future Outlook - DXP expects to benefit from increased oil and gas activity and recent acquisitions in the water and wastewater markets throughout the remainder of 2024[71] - The company plans to pursue additional acquisition targets, primarily funded through cash flows from operations and borrowings[105] Expenses - Selling, general and administrative expenses increased by $6.1 million, or 6.4%, to $100.4 million for the three months ended June 30, 2024[79] - Interest expense for the second quarter of 2024 increased by $3.5 million compared to the prior year's corresponding period, primarily due to additional borrowing[80] Taxation - The effective tax rate from continuing operations was 27.4% for the three months ended June 30, 2024, compared to 26.3% for the same period in 2023[81] Organic Sales - Organic sales for the three months ended June 30, 2024 were $422.2 million, compared to $420.8 million for the prior year's corresponding period[89]

[DXP Enterprises, Inc. Second Quarter 2024 Results](index=1&type=section&id=DXP%20Enterprises%2C%20Inc.%20Second%20Quarter%202024%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported strong Q2 sales growth, increased Adjusted EBITDA, and continued its strategic acquisition plan Q2 2024 Key Metrics | Metric | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | | Sales | $445.6 million | +4.1% | | GAAP Diluted EPS | $1.00 | -5.7% | | Adjusted EBITDA | $48.2 million | +6.4% | | Net Income | $16.7 million | -12.3% | | Free Cash Flow (YTD) | $30.0 million | +63.1% | - Completed **four acquisitions** through the second quarter of 2024, consisting of two water companies and two industrial rotating equipment companies[1](index=1&type=chunk) - Cash on hand at the end of the quarter was **$49.9 million**[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong sequential sales growth to organic execution and acquisitions, planning further expansion - CEO David R. Little emphasized that strong sequential sales growth and gross profit margins produced a **GAAP EPS of $1.00**, with acquisitions adding **$23.4 million** in sales[2](index=2&type=chunk) - CFO Kent Yee noted the company's diversification efforts, reduced energy industry exposure, and strong balance sheet with a **net debt to EBITDA ratio of 2.64:1.0**[2](index=2&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The company's financial statements detail changes in operations, assets, liabilities, and equity for the period [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Sales increased year-over-year, but higher expenses led to a decline in net income and diluted EPS Consolidated Statements of Operations Highlights ($ thousands, except EPS) | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | **$445,556** | **$428,040** | **$858,191** | **$852,307** | | Gross Profit | $137,793 | $131,852 | $261,675 | $256,893 | | Income from Operations | $37,352 | $37,480 | $66,483 | $72,879 | | **Net Income** | **$16,693** | **$19,054** | **$28,025** | **$36,634** | | **Diluted EPS** | **$1.00** | **$1.06** | **$1.66** | **$2.01** | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew slightly, driven by an increase in goodwill from acquisitions offset by a decrease in cash Condensed Consolidated Balance Sheet Highlights ($ thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash | $49,936 | $173,120 | | Goodwill | $426,821 | $343,991 | | **Total Assets** | **$1,189,146** | **$1,177,436** | | Total Current Liabilities | $227,703 | $224,165 | | Long-term Debt, net | $519,735 | $520,697 | | **Total Liabilities** | **$804,465** | **$796,557** | | **Total Equity** | **$384,681** | **$380,879** | [Business Segment Performance](index=6&type=section&id=Business%20Segment%20Performance) The Innovative Pumping Solutions segment drove performance with significant revenue and operating income growth Q2 2024 Segment Revenue & Operating Income ($ thousands) | Segment | Revenue (Q2 2024) | Revenue (Q2 2023) | % Change | Operating Income (Q2 2024) | Operating Income (Q2 2023) | | :--- | :--- | :--- | :--- | :--- | :--- | | Service Centers | $306,516 | $313,806 | -2.3% | $43,855 | $46,823 | | Innovative Pumping Solutions | $73,377 | $48,067 | +52.7% | $13,366 | $6,760 | | Supply Chain Services | $65,663 | $66,167 | -0.8% | $5,823 | $5,416 | [Non-GAAP Financial Measures & Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Reconciliations show increased Adjusted EBITDA and a significant improvement in Free Cash Flow year-over-year Reconciliation of Adjusted EBITDA ($ thousands) | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Income before income taxes | $23,003 | $25,859 | | Plus: Interest expense | $15,384 | $11,863 | | Plus: Depreciation & amortization | $8,127 | $6,703 | | **EBITDA** | **$46,514** | **$44,425** | | Plus: Adjustments | $1,712 | $871 | | **Adjusted EBITDA** | **$48,226** | **$45,296** | Reconciliation of Free Cash Flow ($ thousands) | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $14,735 | $(2,430) | | Less: purchases of property and equipment | $(8,825) | $(1,813) | | **Free Cash Flow** | **$5,910** | **$(4,243)** | Reconciliation of Adjusted Diluted EPS | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Diluted Earnings per Share | $1.00 | $1.06 | | **Adjusted Diluted Earnings per Share** | **$1.02** | **$1.06** | [Company Information](index=2&type=section&id=Company%20Information) The company operates as an industrial distributor and advises on forward-looking statement risks - DXP is a leading products and service distributor providing value-added solutions to industrial customers in North America and Dubai[4](index=4&type=chunk) - The company's business segments are **Service Centers, Innovative Pumping Solutions, and Supply Chain Services**[4](index=4&type=chunk) - The press release contains **forward-looking statements** protected under the Private Securities Litigation Reform Act of 1995, which involve significant risks and uncertainties[8](index=8&type=chunk)

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outsideaudited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, DXP Enterprises possesses a Zacks Rank of #5 (Strong Sell). Market participants will be closely following the financial results of DXP Enterprises in its upcoming release. Our research reveals that these estimate ...

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Shares of the industrial products supplier have appreciated by 11.86% over the course of the past month, outperforming the Industrial Products sector's gain of 3.98% and the S&P 500's gain of 1.96%. Investors might also notice recent changes to analyst estimates ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 29: DXP Enterprises, Inc. (DXPE) : Thisindustrial distributor company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 13% over the last 60 days. DXP Enterprises' shares gained 39.5% over the last three months compared with the S&P 500's advance of 0.2%. The company possesses a Momentum Score of B. Engie SA (ENGIY) : This energy company has a Zac ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 29: Navios Maritime Partners L.P. (NMM) : This dry bulk shipping company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days. Navios Maritime has a price-to-earnings ratio (P/E) of 3.21 compared with 11.60 for the industry. The company possesses a Value Score of A. See the full list of top ranked stocks here. Learn m ...

Company Performance - DXP Enterprises (DXPE) has returned 47.2% year-to-date, significantly outperforming the average gain of 14.5% in the Industrial Products group [4] - The Zacks Consensus Estimate for DXPE's full-year earnings has increased by 13% over the past 90 days, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - DXP Enterprises is part of the Manufacturing - General Industrial industry, which consists of 44 companies and currently ranks 68 in the Zacks Industry Rank [5] - The Manufacturing - General Industrial industry has gained an average of 6.1% year-to-date, showing that DXP Enterprises is performing better than its peers in this sector [5] Comparative Analysis - Luxfer (LXFR) is another stock in the Industrial Products group that has outperformed the sector, with a year-to-date increase of 35.9% [4] - Luxfer's consensus EPS estimate for the current year has surged by 185.2% over the past three months, and it holds a Zacks Rank of 2 (Buy) [5]