While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

Howmet Aerospace (HWM) : This company which engages in providing engineered solutions for customers in the transportation and aerospace (both defense and commercial) industries, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.1% over the last 60 days. Howmet Aerospace's shares gained 31.5% over the last three month compared with the S&P 500's gain of 6.8%. The company possesses a Momentum Score of B. DXP Enterprises (DXPE) : This compan ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Financial Data and Key Metrics Changes - Total DXP sales for Q1 increased 1.4% sequentially to $412.6 million, averaging $6.6 million per business day [14][44] - Adjusted EBITDA for Q1 was $40.3 million, with adjusted EBITDA margins at 9.8%, slightly below the recent 10%-plus trends due to seasonality and one-time costs [23][40] - Gross profit margins improved to 30%, a 55 basis point increase compared to Q1 2023 [22][40] - Net income for Q1 was $11.3 million, with diluted earnings per share at $0.67, adjusted to $0.74 when accounting for one-time items [68] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) grew sales 3.2% sequentially and 21% year-over-year, driven by energy-related backlog growth [20][21] - Service Centers experienced a 1.1% sequential growth but a 5.7% decline year-over-year [20] - Supply Chain Services also grew 1.1% sequentially but saw a 7.6% decline year-over-year due to facility closures and efficiency improvements [39][46] Market Data and Key Metrics Changes - The ISM PMI manufacturing index improved from 49.1% in January to 50.3% in March, indicating a shift from contraction to growth, but fell back to 49.2% in April [36] - Sales per business day increased from $5.9 million in January to $7.5 million in March, reflecting typical quarter-end activity [37][44] Company Strategy and Development Direction - The company is focused on organic and inorganic growth, with a strategy to diversify through acquisitions, having closed three acquisitions in Q1 [11][26] - DXP aims to enhance gross profit margins and EBITDA margins through strategic capital allocation and operational efficiencies [4][17] - The company is positioning itself to capture market share in industrial, energy, and utility sectors, with a strong emphasis on ESG objectives [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of industrial end markets, attributing growth to price increases and market share gains [12][34] - The company anticipates continued strong demand in the oil and gas sector and expects to benefit from a good cycle in energy-related project work [13][15] - Management acknowledged inflationary pressures but emphasized their ability to manage costs and maintain profitability [41][81] Other Important Information - DXP produced over $24.1 million in free cash flow, marking a solid start to the year [17][49] - The company repurchased 326,000 shares for $16.8 million during the quarter, reflecting a commitment to returning capital to shareholders [17][51] - Return on invested capital (ROIC) was reported at 36.3% at the end of Q1 [70] Q&A Session Summary Question: Trends in sales per business day for April and early May - Management noted that sales per business day in April were $6.8 million, reflecting a 2.7% year-over-year increase [74][75] Question: Expectations for revenue progression in Q2 - Management indicated that typically Q2 outperforms Q1, and they expect similar trends this year [78] Question: Attainability of 10% EBITDA margin - Management believes the 10% EBITDA margin is attainable in Q2, citing seasonality and one-time costs as factors affecting Q1 results [59][60] Question: Insights on growth initiatives and acquisitions - Management discussed ongoing efforts to capture national accounts and the potential for significant sales from integrated supply services [62][63] Question: Details on upcoming acquisitions - Management mentioned plans for a tuck-in acquisition with expected revenue of $25 million to $35 million, maintaining strong profitability [91]

DXP Enterprises (DXPE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a chang ...

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has DXP Enterprises (DXPE) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.DXP Enterprises is a member of our Industrial Products group, which includes 222 different companies and currently sits at #3 in the Zacks Sector Ra ...

Here are two stocks with buy rank and strong value characteristics for investors to consider today, May 10th:  DXP Enterprises (DXPE) : This company which is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13% over the last 60 days.DXP Enterprises has a price-to- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Texas 76-0509661 5301 Hollister, Houston, Texas 77040 (Address of principal executive offices, including zip code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to __________ Commission file ...

NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO www.dxpe.com THE INDUSTRIAL DISTRIBUTION EXPERTS DXP ENTERPRISES, INC. REPORTS FIRST QUARTER 2024 RESULTS Houston, TX – May 8, 2024 – DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the first quarter ended March 31, 2024. The following are results for the three months ended March 31, 2024, compared to the three months ended March 31, 2023 and December 31, 2023, where appropriate. A reconciliation of ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental a ...