Core Viewpoint - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if their future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through tools like the Zacks Momentum Style Score [2] Group 2: Kennametal (KMT) Stock Analysis - Kennametal (KMT) has shown a price increase of 12.4% over the past four weeks, indicating growing investor interest [3] - KMT has gained 26.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.4, suggesting it moves 40% more than the market in either direction, indicating fast-paced momentum [4] - KMT holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - KMT is trading at a Price-to-Sales ratio of 0.94, indicating it is reasonably valued at 94 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides KMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Group 1 - Kennametal Inc. will host its fourth quarter and fiscal 2025 earnings call on August 6, 2025, at 9:30 am ET [1] - The earnings call will be led by Sanjay Chowbey, President and CEO, and Patrick Watson, Vice President and CFO [1] - The press release and presentation will be available on the company's website before the market opens on August 6 [1] Group 2 - Kennametal has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [2] - The company serves customers in various sectors, including aerospace and defense, earthworks, energy, general engineering, and transportation [2] - Kennametal generated $2 billion in revenues in fiscal 2024, with approximately 8,400 employees supporting customers in nearly 100 countries [2]

Core Insights - Kennametal Inc. has been recognized as one of America's Best Midsize Companies for 2025 by TIME and Statista, highlighting its leadership in employee satisfaction and sustainability transparency [1][2] - The recognition reflects Kennametal's commitment to sustainable growth, an engaged workforce, and long-term value creation for stakeholders [2] - This accolade follows Kennametal's inclusion in TIME's World's Best Companies 2024 list, reinforcing its strong performance and values-driven culture [2] Company Overview - Kennametal has over 85 years of experience as an industrial technology leader, providing productivity solutions through materials science, tooling, and wear-resistant solutions [3] - The company serves various sectors including aerospace and defense, earthworks, energy, general engineering, and transportation, helping customers manufacture with precision and efficiency [3] - Kennametal employs approximately 8,400 individuals across nearly 100 countries and generated $2 billion in revenues in fiscal 2024 [3]

Core Insights - Kennametal Inc. (KMT) is positioned to benefit from strong momentum in its end markets, a robust product portfolio, product innovations, and a solid capital-deployment strategy [1][3] - The company has a market capitalization of $1.8 billion and its stock has increased by 8.1% over the past month, outperforming the industry growth of 4.9% [1] Business Strength - KMT is experiencing positive trends that support long-term growth, including increased U.S. and international defense spending and digitalization [3] - Improved supply chain conditions and rising original equipment manufacturer build rates in the aerospace market in EMEA are favorable for KMT [3] - For fiscal 2025, KMT anticipates revenue growth from aerospace and defense markets compared to the previous year [3] Strong Product Portfolio - The company benefits from a well-diversified product portfolio and ongoing investments in product development [4] - Notable product introductions include TopSwiss Inserts, HARVI TE Duo-Lock, KSEM ST Line, Through Coolant ER Collets, FV Geometry Inserts, and Chip Fan [4] Strategic Investments - KMT is focused on strategic partnerships and investments in manufacturing facilities to enhance growth [5] - In May 2025, KMT invested in Toolpath Labs, an AI-powered computer-aided manufacturing software company, to expand its digital capabilities for manufacturing customers globally [5] Shareholder-Friendly Policies - KMT is committed to rewarding shareholders through dividends and share repurchases [6] - In the first nine months of fiscal 2025, the company distributed $46.6 million in dividends and repurchased shares worth $55.1 million [6] - The company completed its initial share repurchase program in 2024 and authorized a new $200 million repurchase program in February 2024, valid for three years [7] Earnings Momentum - KMT's earnings per share (EPS) estimate for 2025 has increased by 24% in the past 60 days, indicating improving earnings momentum [9] - The Zacks Consensus Estimate for KMT's fiscal 2025 earnings has risen by 24%, while the estimate for fiscal 2026 has increased by 7.8% [10]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Kennametal (KMT) Stock Analysis - Kennametal (KMT) has shown a price increase of 1.3% over the past four weeks, indicating growing investor interest [4] - KMT has gained 2.9% over the past 12 weeks, with a beta of 1.4, suggesting it moves 40% more than the market [5] - KMT has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - KMT is trading at a Price-to-Sales ratio of 0.84, suggesting it is undervalued at 84 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides KMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - Kennametal Inc. has completed the sale of its Goshen, IN business, which is a strategic move aimed at improving sales mix, reducing material cost volatility, and focusing on long-term priorities to enhance stakeholder value [1][2]. Financial Summary - The company received $19 million from the transaction, resulting in an immaterial pre-tax loss. The proceeds are subject to customary post-closing adjustments and an EBITDA-based earn-out opportunity after three years [2]. - The proceeds from the sale are expected to be used for general corporate purposes [2]. Business Impact - The Goshen subsidiary, Kennametal Stellite, L.P., serves the surface coating and welding products markets and represents less than 2% of Kennametal's total sales, making it immaterial to the company's overall profitability [3]. Company Overview - Kennametal Inc. has over 85 years of experience as an industrial technology leader, providing productivity solutions through materials science and tooling [4]. - The company generated $2 billion in revenues in fiscal 2024 and employs approximately 8,400 people across nearly 100 countries [4].

Core Viewpoint - Kennametal (KMT) shares have increased by approximately 5.2% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings Estimates - Fresh estimates for Kennametal have trended upward over the past month, with the consensus estimate shifting by 7.73% [2] - The stock has an average Growth Score of C, a Momentum Score of A, and a Value Score of B, resulting in an aggregate VGM Score of A [3] Group 2: Outlook - The upward trend in estimates for Kennametal appears promising, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Group 3: Industry Performance - Kennametal is part of the Zacks Manufacturing - Tools & Related Products industry, where Stanley Black & Decker (SWK) has gained 5.8% over the past month [5] - Stanley Black & Decker reported revenues of $3.74 billion for the last quarter, reflecting a year-over-year decline of 3.2%, with an EPS of $0.75 compared to $0.56 a year ago [5] - For the current quarter, Stanley Black & Decker is expected to post earnings of $0.35 per share, indicating a significant decline of 67.9% from the previous year, with a Zacks Rank of 5 (Strong Sell) [6]

Core Insights - Kennametal Inc. (KMT) is experiencing positive trends that support long-term growth, including increased U.S. and international defense spending, digitalization, improved supply chain, and rising original equipment manufacturer build rates in the aerospace market [1][10] - The company is focused on strategic partnerships and investments in manufacturing facilities, exemplified by its investment in Toolpath Labs to enhance AI-powered computer-aided manufacturing capabilities [2][10] - Kennametal is committed to shareholder returns, having distributed $46.6 million in dividends and repurchased $55.1 million in shares in the first nine months of fiscal 2025 [3][4] Financial Performance - In fiscal 2024, Kennametal distributed $63.4 million in dividends and repurchased shares worth $65.4 million, with a $200 million repurchase program authorized in February 2024 [4] - The company's stock has gained 9.3% over the past month, compared to the industry's 10.5% growth [7] Market Challenges - The Metal Cutting segment's organic revenues decreased by 4% year over year in the third quarter of fiscal 2025 due to reduced demand in the transportation end market [8] - The Infrastructure segment also faced challenges, with organic revenues declining by 2% year over year, attributed to weakness in the general engineering end market and lower mining activity in the Americas and Asia Pacific [9][10]

Core Insights - Kennametal Inc. has made a strategic investment in Toolpath Labs, focusing on AI-powered computer-aided manufacturing (CAM) software to enhance its digital capabilities and offerings for manufacturing customers globally [1][2] Company Overview - Kennametal has over 85 years of experience as an industrial technology leader, providing productivity solutions through materials science and tooling [5] - The company generated $2 billion in revenues in fiscal 2024 and employs approximately 8,400 people across nearly 100 countries [5] Partnership Details - The partnership with Toolpath Labs aims to integrate AI into the CAM process, optimizing tool selection and strategies, thereby improving efficiency for customers [3] - Toolpath's software is designed to make advanced toolpath strategies more accessible, addressing industry skill gaps [3] - The collaboration will focus on co-developing and commercializing solutions that leverage Toolpath's AI capabilities alongside Kennametal's tooling expertise [4] Strategic Goals - The partnership is part of Kennametal's digital transformation journey, enhancing application engineering expertise through intuitive software [2] - Both companies aim to bridge human expertise and digital intelligence to deliver measurable performance improvements on the shop floor [4] - The collaboration will involve joint efforts in go-to-market strategies, product development, and demand generation initiatives to scale Toolpath's platform globally [4]

Core Viewpoint - Kennametal Inc. reported strong adjusted earnings for Q3 fiscal 2025, significantly exceeding expectations, despite a decline in revenues year-over-year [1][2]. Revenue Performance - Total revenues for Kennametal were $486.4 million, a decrease of 5.7% from the previous year, and missed the Zacks Consensus Estimate of $490 million [2]. - Revenue breakdown by region showed a 3% decline in American operations to $240.4 million, a 4% decrease in Europe, the Middle East, and Africa to $151.3 million, and a 1% drop in Asia Pacific to $94.8 million [2]. - The Metal Cutting segment generated revenues of $304.3 million, down 7% year-over-year, with organic revenues declining 4% [3]. - The Infrastructure segment reported revenues of $182.1 million, a 4% decrease year-over-year, with organic revenues down 2% [4]. Margin and Cost Analysis - Cost of goods sold decreased by 9% year-over-year to $330 million, leading to a gross profit increase of 2% to $156.4 million and a gross margin improvement of 250 basis points to 32.2% [5]. - Operating income rose 25.7% year-over-year to $44.1 million, with an operating margin increase of 230 basis points to 9.1% [5]. - Interest expenses were reported at $6.2 million, down 8.3% from the previous year [6]. Balance Sheet and Cash Flow - As of the end of Q3, cash and cash equivalents stood at $97.5 million, down from $128 million in the previous quarter, while long-term debt increased slightly to $596.6 million [7]. - In the first nine months of fiscal 2025, net cash generated from operating activities was $129.7 million, compared to $163.5 million in the same period last year [8]. - Free operating cash flow was reported at $63 million, down from $84 million in the previous fiscal year [8]. Dividend and Share Repurchase - The company declared a quarterly cash dividend of 20 cents per share, with a total payout of $46.6 million, and repurchased shares worth $55.1 million [9][11]. Guidance - Kennametal updated its fiscal 2025 outlook, projecting sales between $1.97 billion and $1.99 billion, and adjusted earnings per share in the range of $1.30 to $1.45 [12]. - Free operating cash flow is expected to exceed 125% of net income, with capital spending anticipated at approximately $90 million [12].