STAMFORD, Conn.--(BUSINESS WIRE)--ITT reports 2025 third quarter earnings per share (EPS) of $1.62, Adjusted EPS of $1.78; Raising full year guidance. ...

Core Insights - Investors are evaluating Sumitomo Corp. (SSUMY) and ITT (ITT) as potential undervalued stocks in the Diversified Operations sector [1] Valuation Metrics - Both SSUMY and ITT currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - SSUMY has a forward P/E ratio of 9.61, significantly lower than ITT's forward P/E of 26.82 [5] - The PEG ratio for SSUMY is 1.90, while ITT's PEG ratio is 2.15, suggesting SSUMY may be more favorably valued considering expected earnings growth [5] - SSUMY's P/B ratio is 1.07, compared to ITT's P/B of 5.31, further indicating that SSUMY is undervalued relative to its book value [6] - Based on these valuation metrics, SSUMY has earned a Value grade of A, while ITT has a Value grade of D [6] Investment Recommendation - Despite both companies having solid earnings outlooks, SSUMY is identified as the superior value option based on the discussed valuation figures [7]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company Offerings - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Promotional Offer - A two-week free trial is available for new subscribers, allowing them to explore the services related to oil and gas investments [2]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with oil and gas investment opportunities [2]

Core Insights - ITT Inc.'s KONI business has been awarded the 2025 Railsponsible Supplier Award, highlighting its commitment to sustainability and responsible sourcing in the rail industry [1] Company Summary - The recognition of KONI as the 2025 Railsponsible Supplier Award winner underscores the company's efforts in promoting sustainable practices within its operations [1]

Core Insights - The Zacks Diversified Operations industry is benefiting from strong performance in aerospace, defense, and oil & gas sectors, driven by growth in commercial aviation and demand in home and building products [1][4] - Challenges such as manufacturing sector weakness and supply-chain disruptions are impacting industry performance [2][6][7] - The industry is ranked 88 in the Zacks Industry Rank, indicating solid prospects with a positive earnings outlook [8][10] Industry Overview - The Zacks Diversified Operations industry encompasses companies in various sectors including oil & gas, industrial, electronics, aviation, and healthcare, providing a wide range of equipment and solutions [3] - Companies in this industry have a global presence, with operations in the U.S., Japan, India, China, and Canada [3] Major Trends - Strength in aerospace and defense markets is a key driver, with robust demand expected to continue due to air travel and government support [4] - Investments in innovation and technology are crucial for growth, with companies focusing on digitization to enhance operational efficiency [5] Challenges - The manufacturing sector has shown persistent weakness, with the Manufacturing Purchasing Manager's Index at 49.1% in September, indicating contraction [6] - Supply-chain disruptions, particularly in electrical and electronic components, are a concern for industry participants [7] Performance Metrics - The Zacks Diversified Operations industry has underperformed the S&P 500, declining 6.7% over the past year compared to the S&P 500's 16.5% increase [12] - The industry is currently trading at a forward P/E of 11.15X, significantly lower than the S&P 500's 23.29X [15] Notable Companies - **3M Company (MMM)**: Gained 11.3% in the past year, with strong momentum in safety and industrial segments [17][18] - **ITT Inc. (ITT)**: Shares increased by 11.7% in the past year, benefiting from demand in energy and industrial markets [21][22] - **Star Equity Holdings, Inc. (STRR)**: Expected to benefit from its Building Solutions division, with a significant earnings estimate increase of 154.5% over the past 60 days [25][26]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: ITT - ITT currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - The company supplies parts and services across various industries, positioning it as a solid momentum pick [4] Price Performance - ITT shares have increased by 2.45% over the past week, outperforming the Zacks Diversified Operations industry, which rose by 1.19% [6] - Over the last month, ITT's stock price has changed by 4.51%, significantly better than the industry's 0.69% [6] - In the longer term, ITT shares have gained 14.44% over the past quarter and 21.41% over the last year, compared to the S&P 500's increases of 7.76% and 18.58%, respectively [7] Trading Volume - ITT's average 20-day trading volume is 449,988 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions show positive momentum, with 2 estimates moving higher for the full year and none lower, raising the consensus estimate from $6.48 to $6.50 [10] - For the next fiscal year, 1 estimate has increased, with no downward revisions during the same period [10] Conclusion - Given the positive price trends, strong earnings outlook, and favorable momentum indicators, ITT is positioned as a promising investment opportunity [11][12]

Core Viewpoint - ITT Inc. is scheduled to release its third quarter 2025 financial results before the opening of the New York Stock Exchange on Wednesday, October 29 [1] Company Summary - ITT Inc. will announce its financial performance for the third quarter of 2025 [1] - The announcement will take place prior to the market opening on October 29 [1] - The financial results will be made public through a press release [1]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - ITT is currently recommended as a strong growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 11% this year, surpassing the industry average of 8.8% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - ITT's year-over-year cash flow growth is 14.7%, significantly higher than the industry average of -9.5% [5] - The historical annualized cash flow growth rate for ITT is 6.6%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for ITT have been revised upward, with a 0.1% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Overall Positioning - ITT has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]

Company Overview - ITT Inc. is a mid-cap industrial compounder with a diverse portfolio in essential markets such as auto brake pads, rail safety components, industrial pumps and valves, and connectivity/control devices [2] - The company is focused on operational excellence, margin expansion, and strategic mergers and acquisitions (M&A) to drive growth [2] Growth Strategy - ITT's growth strategy emphasizes productivity gains, value-based pricing, and operating leverage as volumes increase [3] - The company is shifting its revenue mix from cyclical auto original equipment (OE) to higher-margin niche industrial components, particularly in industrial flow and aerospace/defense connectors [3] - ITT aims to achieve over $11 in earnings per share (EPS) by 2030, with potential to exceed $12 EPS through planned ~$600 million in annual M&A and share repurchases [3] Financial Performance - ITT has a return on invested capital (ROIC) around 20% and free cash flow margins nearing 15% [4] - The company is positioned for a potential re-rating towards peers like Ingersoll, suggesting a price-to-earnings (P/E) ratio of 24–25x next twelve months (NTM) [4] - This could imply total returns of 20–25% internal rate of return (IRR) even before considering M&A benefits [4] Management and Market Position - ITT is supported by a capable management team with a strong track record in operational and financial execution [4] - The disciplined M&A approach, as seen in acquisitions like kSARIA and Svanehoj, enhances both earnings and strategic positioning [4] - The company presents a compelling opportunity for investors seeking steady industrial growth with multiple avenues for margin and value expansion [4]