The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Federal Signal (FSS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.Federal Signal is one of 99 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank c ...

Investors interested in stocks from the Automotive - Domestic sector have probably already heard of General Motors (GM) and Federal Signal (FSS) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with po ...

Core Insights - Major U.S. stock indices ended positively on Nov. 25, 2025, driven by investor optimism and an 83% probability of a quarter-percentage-point rate cut by the central bank in December [1][2] Group 1: Investment Recommendations - Companies recommended for investment include Federal Signal Corp. (FSS), Jones Lang LaSalle (JLL), Northrip Bancorp (NRIM), Safran SA (SAFRY), and Engie (ENGIY), as they carry low leverage and may offer stability during market volatility [3][10] - FSS reported a 30% year-over-year increase in adjusted EPS and 17% revenue growth for Q3 2025, with a Zacks Rank of 2 [14][15] - JLL's adjusted EPS surged 29% year-over-year, with a 10% revenue increase in local currency for Q3 2025, also holding a Zacks Rank of 2 [16][17] - NRIM's EPS soared 207.7% year-over-year, driven by asset sales and increased net interest income, with a Zacks Rank of 2 [18][19] - Safran expects a 39.9% year-over-year improvement in sales for 2025, with a long-term earnings growth rate of 20.5% and a Zacks Rank of 2 [20][21] - Engie announced a new 280 MW/560 MWh Battery Energy Storage System project in India, with a projected 30.7% earnings improvement for 2025 and a Zacks Rank of 2 [21][22] Group 2: Financial Metrics and Analysis - Leverage is defined as the use of borrowed capital for operations and expansion, with a focus on avoiding companies that excessively rely on debt financing [4][5] - The debt-to-equity ratio is a key metric for assessing financial risk, with lower ratios indicating better solvency [6][7] - A strategy focusing on stocks with low debt-to-equity ratios is recommended for steady returns, especially during economic downturns [9][10] - Additional screening criteria for stock selection include being less leveraged than industry peers, trading at a minimum price of $10, having substantial trading volume, and showing positive earnings growth expectations [12][13]

Core Insights - Federal Signal Corporation has completed the acquisition of Scranton Manufacturing Company LLC, known as New Way Trucks, a prominent U.S. designer and manufacturer of refuse collection vehicles [1][2] - The acquisition is expected to enhance Federal Signal's Environmental Solutions Group, leveraging New Way's market position and reputation for quality [2] - Federal Signal has raised its full-year 2025 net sales outlook to a range of $2.12 billion to $2.16 billion, up from $2.10 billion to $2.14 billion, and adjusted EPS outlook to $4.12 to $4.20, from $4.09 to $4.17 [2] Acquisition Details - New Way has a backlog exceeding $100 million, providing visibility into the first half of the next year [2] - The acquisition is anticipated to be neutral to adjusted EPS in 2025, with expected accretion of $0.40 to $0.45 in EPS by 2028, alongside annual run-rate synergies of $15 million to $20 million [2] Company Overview - Federal Signal Corporation, founded in 1901, is a global leader in designing and manufacturing products for municipal, governmental, industrial, and commercial customers [3] - The company operates two main groups: Environmental Solutions and Safety and Security Systems, with headquarters in Downers Grove, Illinois [3]

Core Viewpoint - Federal Signal (FSS) has been outperforming its peers in the Auto-Tires-Trucks sector this year, with a year-to-date return of 14.9% compared to the sector average of 2.6% [4]. Company Performance - Federal Signal is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive outlook based on earnings estimates and revisions [3]. - Over the past 90 days, the Zacks Consensus Estimate for FSS's full-year earnings has increased by 2.7%, reflecting improved analyst sentiment [3]. - The stock has returned 14.9% year-to-date, significantly outperforming the average return of 2.6% for the Auto-Tires-Trucks sector [4]. Sector Comparison - Federal Signal is one of 99 stocks in the Auto-Tires-Trucks sector, which ranks 8 in the Zacks Sector Rank [2]. - OPENLANE (KAR) is another stock in the sector that has outperformed, with a year-to-date return of 23.4% [4]. - Federal Signal belongs to the Automotive - Domestic industry, which includes 14 stocks and is currently ranked 94 in the Zacks Industry Rank [5].

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Core Insights - The article promotes a premium service called "Value in Corporate Events," which focuses on major corporate events such as earnings reports, mergers and acquisitions (M&A), and initial public offerings (IPOs) [1] Group 1 - The service aims to provide actionable investment ideas and opportunities for members, covering approximately 10 major events each month [1] - The leader of the investing group has a Master of Science specializing in financial markets and a decade of experience in tracking companies through catalytic events [1] - The coverage includes a focus on finding the best investment opportunities related to corporate capital allocation changes [1]

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Financial Performance - Net sales for Q3 2025 increased by $80.8 million, or 17%, compared to Q3 2024, driven by higher sales volumes and pricing actions[153]. - Operating income for Q3 2025 rose by $18.1 million, or 24%, with a consolidated operating margin of 16.9%, up from 16.0% in the prior-year quarter[155]. - Net income for Q3 2025 increased by $14.2 million compared to Q3 2024, despite a $3.7 million rise in income tax expense[159]. - For the nine months ended September 30, 2025, net sales increased by $193.9 million, or 14%, with the Environmental Solutions Group contributing $172.4 million of this increase[154]. - Gross profit for the nine months ended September 30, 2025 increased by $61.5 million, or 15%, with a gross profit margin of 29.2%, up from 28.8% in the prior-year period[170]. - Operating income for the nine months ended September 30, 2025 increased by $46.1 million, or 22%, with a consolidated operating margin of 16.3%, compared to 15.2% in the prior-year period[174]. - Net income for the nine months ended September 30, 2025 increased by $19.5 million, largely due to higher pre-tax income levels, despite a $25.4 million increase in income tax expense[180]. Sales and Orders - The Environmental Solutions Group reported a net sales increase of $67.3 million, or 17%, with significant contributions from road-marking equipment ($16.2 million) and sewer cleaners ($7.0 million)[153]. - Total orders for Q3 2025 were $467 million, an increase of $41 million, or 10%, compared to Q3 2024, with the Safety and Security Systems Group seeing a 31% increase in orders[160]. - The Safety and Security Systems Group saw a net sales increase of $21.5 million, or 9%, primarily from public safety equipment sales[154]. - Total orders for the nine months ended September 30, 2025 increased by $115.7 million, or 10%, with U.S. orders rising significantly[188]. - Total orders for the nine months ended September 30, 2025 increased by $57.2 million, or 25%, with U.S. orders up by $32.9 million[199]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2025 increased by $132.4 million, or 13%, primarily due to higher sales volumes and costs from recent acquisitions[168]. - SEG&A expenses for the nine months ended September 30, 2025 increased by $12.9 million, or 7%, but as a percentage of net sales, they decreased to 11.9% from 12.6%[172]. - Cost of sales for the nine months ended September 30, 2025 increased by $122.9 million, or 14%, with a gross profit margin of 26.5%, up from 26.2% in the prior-year period[190]. Cash Flow and Investments - Net cash provided by operating activities was $157.5 million for the nine months ended September 30, 2025, compared to $140.7 million in the prior-year period[210]. - The company used $101.3 million for investing activities, including an initial payment of $82.1 million to acquire Hog[211]. - As of September 30, 2025, cash and cash equivalents totaled $54.4 million, down from $91.1 million as of December 31, 2024[209]. Financial Position and Resources - The consolidated backlog at September 30, 2025, was $992 million, down from $1.03 billion at the same time in 2024[162]. - The Company was in compliance with all financial covenants under the 2022 Credit Agreement as of September 30, 2025[214]. - Capital expenditures for 2025 are anticipated to be in the range of $40 million to $50 million[214]. - The Company believes its financial resources, including cash flow from operations and borrowing capacity, will be adequate to meet operating and capital needs[215]. - There have been no material changes in the Company's contractual obligations and off-balance sheet arrangements during the nine months ended September 30, 2025[216]. - There have been no significant changes in the Company's exposure to market risk during the nine months ended September 30, 2025[218].

Core Insights - The company reported strong financial results for Q3, with consolidated net sales of $555 million, reflecting a 17% year-over-year increase [3] - Adjusted EBITDA for the quarter was $116.2 million, up 25% compared to last year, indicating robust operational performance [3] - The company raised its full-year adjusted EPS outlook to a range of $4.09 to $4.17, up from the previous range of $3.92 to $4.10, driven by healthy demand and strong order intake [30][31] Financial Performance - ESG's net sales for the quarter were $466 million, a 17% increase year-over-year [1] - Operating income for ESG was $85.3 million, up 19% from the previous year [1] - SSG's net sales reached $90 million, an 18% increase compared to last year [5] - Consolidated operating income was $94 million, reflecting a 24% increase year-over-year [3] Order Intake and Backlog - Total orders for ESG were $371 million, a 5% increase year-over-year [1] - Order intake for the company was $467 million, a 10% increase compared to last year, marking the highest third-quarter order intake on record [2][20] - Backlog at the end of the quarter stood at $992 million, down 4% compared to Q3 last year [2] Margins and Earnings - The adjusted EBITDA margin for ESG was 22.5%, up 60 basis points year-over-year [1] - GAAP diluted EPS for the quarter was $1.11 per share, a 28% increase from the previous year [2] - Adjusted EPS was $1.14 per share, reflecting a 30% increase year-over-year [2] Strategic Initiatives and Growth Outlook - The company is focused on multiyear growth initiatives, including investments in productivity-enhancing projects and capacity expansions [15][25] - The acquisition of Hog Technologies is expected to contribute between $60 million and $65 million in net sales in 2025, up from previous estimates [24] - The company plans to continue its "Build More Parts" initiative to vertically integrate parts production, aiming for increased recurring revenue streams [28] Market Conditions and Demand - Demand for products and services remains strong, with particular strength in publicly funded safety and security products [21] - The company expects orders within the Environmental Solutions Group to increase in Q4, consistent with seasonal patterns [21] - The transition from third-party refuse trucks to New Way is anticipated to impact backlog dynamics in the coming quarters [35]