Group 1 - DXP Enterprises (DXPE) closed at $97.23, down 2.13% from the previous trading session, underperforming the S&P 500 which gained 0.32% [1] - The stock has increased by 26.82% over the past month, outperforming the Industrial Products sector's gain of 6.49% and the S&P 500's gain of 4.51% [1] Group 2 - The upcoming earnings release is anticipated, with Zacks Consensus Estimates predicting earnings of $5.3 per share and revenue of $0 million, reflecting a year-over-year change of +17.52% for earnings and 0% for revenue [2] - Recent adjustments to analyst estimates indicate changing business trends, with positive revisions suggesting analyst optimism regarding DXP Enterprises' profitability [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows DXP Enterprises currently holds a Zacks Rank of 2 (Buy) [5] - The Forward P/E ratio for DXP Enterprises is 18.75, which is lower than the industry average of 21.85, indicating a valuation discount [6] Group 4 - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [6][7]

Core Viewpoint - DXP Enterprises (DXPE) has shown strong stock performance, significantly outperforming both the S&P 500 and the Industrial Products sector over the past month, with a notable increase in share price and positive earnings expectations for the upcoming disclosure [1][2]. Company Performance - DXP Enterprises closed at $93.73, reflecting a +1.18% increase from the previous day, outperforming the S&P 500's daily gain of 0.28% [1] - Over the last month, the stock has increased by 15.49%, compared to the Industrial Products sector's gain of 5.67% and the S&P 500's gain of 4.37% [1]. Earnings Expectations - Analysts expect DXP Enterprises to report earnings of $5.3 per share and revenue of $0 million for the full year, indicating a +17.52% change in earnings from last year, while revenue is expected to remain unchanged [2]. Analyst Forecast Revisions - Recent revisions to analyst forecasts for DXP Enterprises are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3]. Zacks Rank and Valuation - DXP Enterprises currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5]. - The company has a Forward P/E ratio of 17.48, which is lower than the industry average of 22.45, suggesting that DXP Enterprises is trading at a discount compared to its peers [6]. Industry Context - The Manufacturing - General Industrial industry, to which DXP Enterprises belongs, has a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries, indicating strong performance relative to other sectors [6][7].

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after a prolonged downturn, with new orders for manufactured goods increasing by 8.2% in May compared to a revised 3.9% decline in April, and a year-over-year increase of 3.2% [3][4] - The rebound in manufacturing activity is supported by easing inflationary pressures and expectations of Federal Reserve rate cuts, which are anticipated to boost demand [1][6][11] Manufacturing Activity - The Institute of Supply Management's manufacturing PMI rose to 49 in June from 48.5 in May, indicating a continued contraction but a rebound from a six-month low [5][6] - Manufacturing activity accounts for 10.2% of the U.S. economy, highlighting its significance [5] Stock Recommendations - Four stocks from the manufacturing sector are recommended for investment: Allegion plc (ALLE), AptarGroup, Inc. (ATR), Broadwind, Inc. (BWEN), and DXP Enterprises, Inc. (DXPE), all of which have strong earnings growth prospects and Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2][11] Allegion plc (ALLE) - Allegion is a global provider of security products and solutions, with an expected earnings growth of 3.9% for the current year and a Zacks Rank 2 [8][9] AptarGroup, Inc. (ATR) - AptarGroup specializes in innovative dispensing and packaging solutions, with an expected earnings growth of 4.1% for the current year and a Zacks Rank 2 [12][13] Broadwind, Inc. (BWEN) - Broadwind is a precision manufacturer focused on clean tech, particularly in the U.S. wind energy sector, with an expected earnings growth of 60% for the current year and a Zacks Rank 2 [14][15] DXP Enterprises, Inc. (DXPE) - DXP Enterprises is a distributor providing innovative solutions to industrial customers, with an expected earnings growth rate of 17.5% for the current year and a Zacks Rank 2 [16][17]

Company Overview - DXP Enterprises (DXPE) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Price Performance - Over the past week, DXP Enterprises shares have increased by 6.92%, while the Zacks Manufacturing - General Industrial industry remained flat [6] - In the last month, shares rose by 6.51%, outperforming the industry's 4.32% [6] - Over the past quarter, shares have increased by 19.89%, and over the last year, they have gained 92.1%, compared to the S&P 500's increases of 8.73% and 13.86%, respectively [7] Trading Volume - The average 20-day trading volume for DXP Enterprises is 138,756 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for DXP Enterprises has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $5.28 to $5.30 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, DXP Enterprises is positioned as a solid momentum pick and is recommended for consideration [12]

Group 1 - DXP Enterprises (DXPE) is a stock that has shown strong year-to-date performance compared to its peers in the Industrial Products sector, which includes 189 individual stocks [1][2] - The Zacks Rank for DXP Enterprises is currently 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - Over the past three months, the Zacks Consensus Estimate for DXP's full-year earnings has increased by 23%, reflecting improved analyst sentiment and a stronger earnings outlook [4] Group 2 - DXP Enterprises has gained approximately 1.4% year-to-date, outperforming the average gain of 0.3% for stocks in the Industrial Products group [4] - In comparison, Life360 (LIF), another stock in the Industrial Products sector, has seen a significant year-to-date increase of 49.7% and has a Zacks Rank of 1 (Strong Buy) [5] - DXP Enterprises is part of the Manufacturing - General Industrial industry, which ranks 57 in the Zacks Industry Rank, while the industry has shown an average return of 0% this year [6]

Core Viewpoint - DXP Enterprises (DXPE) has experienced significant selling pressure, resulting in an 11.4% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 indicating oversold conditions [2] - DXPE's current RSI reading is 29.19, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5] - RSI serves as a momentum oscillator that helps identify potential price reversals, indicating that unwarranted selling may present entry opportunities for investors [3] Group 2: Fundamental Analysis - There is a consensus among sell-side analysts that earnings estimates for DXPE have increased by 0.4% over the last 30 days, which typically correlates with price appreciation [7] - DXPE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with DXP Enterprises identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - DXP Enterprises has a historical EPS growth rate of 60.2%, with projected EPS growth of 17.5% for the current year, significantly outperforming the industry average of 5% [5]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.5%, surpassing the industry average of 1.6%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.3%, compared to the industry average of 9% [6][7]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for DXP Enterprises, with the Zacks Consensus Estimate increasing by 0.4% over the past month, indicating positive momentum [9]. Group 4: Overall Positioning - DXP Enterprises holds a Growth Score of B and a Zacks Rank of 2, positioning it favorably for potential outperformance in the growth stock category [10][11].

Core Viewpoint - The importance of cash flow in assessing a company's financial health and investment potential is emphasized, highlighting that cash flow is a critical indicator of a company's ability to sustain growth and manage obligations effectively [1][2][3]. Cash Flow Analysis - Companies must be evaluated not just on profit but on their efficiency in generating cash flows, as a lack of cash flow can lead to financial difficulties even for profitable firms [2]. - In the current global economic climate, characterized by uncertainties and liquidity concerns, analyzing a company's cash-generating efficiency is particularly relevant [3]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity and reduced operational flexibility [4]. Growth and Management Efficiency - A company must not only maintain positive cash flow but also ensure that it is increasing over time, reflecting effective cash management and reduced reliance on external financing [5]. Screening Parameters for Investment - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest reported cash flow is at least equal to the 5-year average cash flow per share, indicating a positive trend [6]. - Additional criteria include a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [7]. Selected Stocks - **Nomad Foods Limited (NOMD)**: Engages in frozen food manufacturing and distribution, with a Zacks Consensus Estimate for 2025 earnings per share improving by 4.0% recently and a VGM Score of A [8]. - **DXP Enterprises, Inc. (DXPE)**: Provides innovative pumping solutions and services, with a current-year earnings estimate revised upward by 22.5% over the past two months and a VGM Score of B [9]. - **Great Lakes Dredge & Dock Corporation (GLDD)**: The largest provider of dredging services in the U.S., with a 34.8% upward revision in the 2025 earnings estimate to 93 cents per share and a VGM Score of A [10]. - **Kingstone Companies, Inc. (KINS)**: Offers property and casualty insurance products, with a 5.6% improvement in the 2025 earnings estimate to $1.90 and a VGM Score of A [10].

Company Performance - DXP Enterprises (NASDAQ: DXPE) reported solid double-digit growth in its topline as it entered 2025, primarily driven by nearly 39% growth in its Innovative Pumping Solutions (IPS) segment [1] Growth Outlook - The growth momentum in the IPS segment is expected to continue, indicating a positive outlook for the company's future performance [1]

Financial Performance - For the three months ended March 31, 2025, DXP Enterprises reported total sales of approximately $476.6 million, an increase of 15.5% compared to $412.6 million for the same period in 2024[107]. - Gross profit for the three months ended March 31, 2025, was $150.3 million, resulting in a gross profit margin of 31.5%, up from 30.0% in the prior year[107]. - EBITDA for the same period was $51.0 million, with an EBITDA margin of 10.7%, compared to 9.4% in the previous year[98]. - Operating income for Q1 2025 increased by $11.4 million to $40.5 million, reflecting growth in the SC and IPS segments[112]. - Total DXP Sales for the three months ended March 31, 2025, increased by $63.9 million, or 15.5%, to $476.6 million compared to $412.6 million in the prior year[108]. Sales Growth - Sales in the Service Centers segment increased by $38.6 million, while the Innovative Pumping Solutions segment saw an increase of $24.0 million, contributing to the overall sales growth[107]. - The Company experienced a 17.9% increase in sales in its Service Centers and Innovative Pumping Solutions segments, totaling approximately $413.3 million for the quarter[93]. - Sales in the Service Centers segment rose by $38.6 million, or 13.4%, driven by increases in the Texas Gulf Coast, Ohio River Valley, and California regions[108]. - Innovative Pumping Solutions segment sales increased by $24.0 million, or 38.5%, attributed to growth in fabrication and global solutions groups[109]. - The Supply Chain Services segment reported sales of approximately $63.3 million, a 2.1% increase compared to the same period in 2024[94]. - Supply Chain Services segment sales grew by $1.3 million, or 2.1%, primarily due to increases in the oil and gas end market[110]. Cash Flow and Debt - Free cash flow for the three months ended March 31, 2025, was $(16.9) million, a decrease from $24.1 million in the same period of 2024[98]. - Total outstanding debt as of March 31, 2025, was $647.3 million, representing 59.3% of total capitalization[129]. - Cash available as of March 31, 2025, was $114.3 million, with an additional $108.9 million in credit facility availability[123]. - Working capital increased by $34.3 million to $325.3 million as of March 31, 2025, due to sustained sales growth and acquisitions[136]. Expenses and Economic Conditions - SG&A expenses rose by $15.0 million, or 15.8%, to $109.8 million, mainly due to higher payroll and related expenses[111]. - DXP Enterprises is actively monitoring economic conditions and adjusting strategies to mitigate risks associated with inflation and supply chain challenges[90].