Investors interested in stocks from the Manufacturing - Tools & Related Products sector have probably already heard of Stanley Black & Decker (SWK) and Lincoln Electric Holdings (LECO) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy ...

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We came across a bullish thesis on Lincoln Electric Holdings, Inc.  on r/ValueInvesting by u/cyclist63c. In this article, we will summarize the bulls’ thesis on LECO. Lincoln Electric Holdings, Inc. 's share was trading at $251.14 as of January 13th. LECO’s trailing and forward P/E were 26.95 and 23.42 respectively according to Yahoo Finance. Vista Energy (VIST) Jumps 18.66% on JPMorgan PT, Rating Upgrade Dmitry Kalinovsky/Shutterstock.com Lincoln Electric Holdings, Inc., through its subsidiaries, desig ...

Company Overview - Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is recognized for its welding products, industrial automation solutions, and cutting equipment, with a strategy focused on steady customer demand and tight cost control [4] - The company benefits from a strong brand reputation for product quality, which fosters customer loyalty and positions it well in a mature industry [4] - Ongoing investments in technology and a skilled workforce enhance its competitive edge [4] Analyst Ratings and Price Targets - Morgan Stanley analyst Angel Castillo reduced the price target for Lincoln Electric to $208 from $209 while maintaining an Underweight rating, following routine model changes in the Machinery and Construction group [2] - Stifel analyst Nathan Jones lowered the price target to $252 from $265 but kept a Hold rating, noting that growth in diversified industrials during 2025 was primarily driven by tariff-related price increases, indicating strong pricing power [3] - The expectation for 2026 includes improved volume growth as inventory destocking fades, with pricing carryover supporting low- to mid-single-digit revenue growth [3]

Core Viewpoint - Lincoln Electric Holdings, Inc. will release its fourth quarter and full year 2025 results on February 12, 2026, prior to market open, and will introduce its 2030 strategic targets during an investor conference call later that day [1]. Group 1: Financial Results Announcement - The fourth quarter and full year 2025 results will be announced before the market opens on February 12, 2026 [1]. - An investor conference call and webcast will occur at 10:00 a.m. (ET) on the same day to discuss the financial results and strategic targets [1]. Group 2: Participation Details - The event will be available via webcast in listen-only mode, accessible through the Company's Investor Relations home page [2]. - For telephone participation, domestic callers can dial (888) 440-4368 and international callers can dial (646) 960-0856, using confirmation code 6709091 [2]. - Participants are encouraged to connect 10 minutes prior to the start of the conference call, and a replay will be available via webcast on the Company's website [2]. Group 3: Company Overview - Lincoln Electric is a global leader in engineering, design, and manufacturing of advanced arc welding solutions and automated systems [3]. - The Company operates 71 manufacturing and automation system integration locations across 20 countries and serves customers in over 160 countries [3]. - Lincoln Electric is recognized for its expertise in materials science, software development, and automation engineering, enhancing customers' fabrication capabilities [3].

Core Viewpoint - Lincoln Electric Holdings, Inc. will hold its 2026 Annual Meeting of Shareholders virtually on April 17, 2026, at 11:00 a.m. Eastern Time [1] Company Overview - Lincoln Electric is recognized as the world leader in engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, as well as plasma and oxy-fuel cutting equipment [1]

Core Viewpoint - Lincoln Electric Holdings (NASDAQ: LECO) has declared a quarterly dividend increase of 5.3% to $0.79 per share, marking its 30th consecutive year of dividend growth, supported by strong financial metrics and a healthy payout ratio [2][8]. Financial Performance - The annual dividend is $3.04 per share, with a current yield of 1.23% [3]. - The earnings payout ratio is 32.6%, indicating a healthy balance between dividends and retained earnings for reinvestment [4][6]. - In Q3 2025, Lincoln Electric generated $205.1 million in free cash flow, with a free cash flow payout ratio below 50%, demonstrating strong cash generation capabilities [5][6]. Debt and Balance Sheet - Total debt increased by 13.8% year over year to $1.32 billion, primarily due to the Alloy Steel acquisition [8][9]. - Net debt stands at $939 million after accounting for $377 million in cash, with a net debt to EBITDA ratio of 1.15x, indicating manageable leverage despite an upward trend from 0.91x in 2023 [9][10]. - The debt-to-equity ratio is 0.99, and total liabilities rose by 14.8% year over year, suggesting increased financial obligations [10].

Core Insights - Lincoln Electric Holdings declared a quarterly dividend of $0.79 per share, representing a 5.3% increase [1] - This increase marks the company's 30th consecutive year of dividend growth [1]

Industry Overview - Robotics companies are leading innovation, enhancing efficiency and productivity in sectors like manufacturing, healthcare, and logistics, with the global robotics market expected to experience significant growth driven by technological advancements and increasing automation demand [1][2] - The integration of hardware, software, and AI in robotics allows for the development of intelligent machines capable of performing complex tasks autonomously or semi-autonomously [2] Investment Potential - The high growth potential in the robotics sector promises substantial returns for investors, while also addressing labor shortages and improving task precision, which can lead to reduced operational costs and enhanced quality [2] - Despite the promising landscape, the investment environment is fraught with risks, including high R&D costs, regulatory challenges, market volatility, and societal impacts of automation [3] Recommended Stocks - Five robotics stocks are recommended for investment in the last two months of 2025: UiPath Inc. (PATH), Emerson Electric Co. (EMR), Trimble Inc. (TRMB), Omnicell Inc. (OMCL), and Lincoln Electric Holdings Inc. (LECO), all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4][7] Company Highlights - **UiPath Inc. (PATH)**: Expected revenue growth of 10.1% and earnings growth of 22.6% for the current year, with an 18.1% improvement in earnings estimates over the past 60 days [9] - **Emerson Electric Co. (EMR)**: Anticipates revenue growth of 4.9% and earnings growth of 8.4% for the current year, with a slight 0.2% increase in earnings estimates over the last 60 days [11] - **Trimble Inc. (TRMB)**: Expected revenue decline of 4.4% but earnings growth of 4.9% for the current year, with a 3.1% improvement in earnings estimates over the last 60 days [13] - **Omnicell Inc. (OMCL)**: Projected revenue growth of 0.1% and earnings growth of 8.2% for the current year, with a 4.7% increase in earnings estimates over the last seven days [15] - **Lincoln Electric Holdings Inc. (LECO)**: Expected revenue growth of 5.2% and earnings growth of 4.5% for the current year, with a 0.6% improvement in earnings estimates over the last 30 days [18]

Financial Performance - Net sales for Q3 2025 reached $1,061,227, an increase of 7.9% compared to $983,759 in Q3 2024[94] - Gross profit for Q3 2025 was $389,311, representing 36.7% of sales, up from 35.8% in Q3 2024[94] - Operating income for Q3 2025 was $176,657, or 16.6% of sales, compared to 14.8% in the prior year[94] - Net income for Q3 2025 was $122,628, a 21.7% increase from $100,756 in Q3 2024[94] - Diluted earnings per share for Q3 2025 increased to $2.21, up 24.9% from $1.77 in Q3 2024[94] - For the nine months ended September 30, 2025, net sales totaled $3,154,288, a 5.6% increase from $2,986,639 in the same period of 2024[94] - Consolidated net sales for the three months ended September 30, 2025, reached $1,061,227, an increase of $77,468 (7.9%) from $983,759 in 2024[104] - Consolidated net income for the three months ended September 30, 2025, was $122,628, up $21,872 (21.7%) from $100,756 in 2024[104] Segment Performance - The Americas Welding segment reported net sales of $691,794 for Q3 2025, an 8.6% increase from Q3 2024[101] - The Harris Products Group saw a 14.8% increase in net sales for Q3 2025, reaching $149,804[101] - Americas Welding net sales increased by $54,768 (8.6%) to $691,794 for the three months ended September 30, 2025, compared to $637,026 in 2024[104] - International Welding adjusted EBIT rose by $5,720 (28.5%) to $25,821 for the three months ended September 30, 2025, compared to $20,101 in 2024[104] - The Harris Products Group net sales increased by $19,295 (14.8%) to $149,804 for the three months ended September 30, 2025, compared to $130,509 in 2024[104] Earnings and Adjusted Metrics - Adjusted EBIT for the nine months ended September 30, 2025, was $556,586, an increase of $29,813 (5.7%) compared to $526,773 in 2024[105] - Americas Welding adjusted EBIT decreased by $4,537 (1.1%) to $393,728 for the nine months ended September 30, 2025, compared to $398,265 in 2024[105] - The Harris Products Group adjusted EBIT increased by $17,530 (26.3%) to $84,291 for the nine months ended September 30, 2025, compared to $66,761 in 2024[105] - Consolidated adjusted EBIT as a percent of sales remained stable at 17.6% for the nine months ended September 30, 2025, compared to 17.6% in 2024[105] - Operating income for Q3 2025 was reported at $176,657 million, an increase from $145,560 million in Q3 2024, while adjusted operating income rose to $184,562 million from $169,756 million[110] - Net income for Q3 2025 was $122,628 million, compared to $100,756 million in Q3 2024, with adjusted net income increasing to $137,218 million from $122,368 million[110] Cash Flow and Capital Management - Cash provided by operating activities for the nine months ended September 30, 2025, was $566,208 million, up from $503,182 million in the same period of 2024, reflecting a $63,026 million increase[116] - The company had $292,997 million in cash and cash equivalents as of September 30, 2025, with $88,199 million in outstanding borrowings under its $1,031,386 million revolving credit facilities[112] - Anticipated capital expenditures for 2025 are projected to be between $100,000 million and $120,000 million, aimed at increasing capacity and improving operational effectiveness[120] - Cash used by financing activities increased to $425,394 million for the nine months ended September 30, 2025, from $152,298 million in the same period of 2024, primarily due to increased share repurchases[116] - The company has 5.3 million shares available for repurchase under its authorized program as of September 30, 2025[123] Tax and Risk Management - The effective tax rate for Q3 2025 was 26.1%, up from 23.6% in Q3 2024[94] - The effective tax rate as reported for Q3 2025 was 26.1%, with an adjusted effective tax rate of 21.1%[110] - The company reported a return on invested capital (ROIC) of 21.2% for the twelve months ended September 30, 2025, compared to 19.7% for the same period in 2024[127] - The average operating working capital to net sales ratio was 18.6% as of September 30, 2025, compared to 19.1% a year earlier[122] - The Company’s forward-looking statements involve risks and uncertainties that may affect operating results, including economic conditions and market volatility[129] - There have been no material changes in the Company's exposure to market risk since December 31, 2024[132] Impairment and Charges - Rationalization and asset impairment net charges decreased significantly to $5,831 in Q3 2025 from $20,227 in Q3 2024, a reduction of 71.2%[94]