Core Viewpoint - Valmont Industries has shown significant stock performance, with an 11.2% increase over the past month and a 33.1% rise since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Steel - Pipe and Tube industry [1] Financial Performance - Valmont has consistently exceeded earnings expectations, reporting an EPS of $4.76 against a consensus estimate of $4.04 in its last earnings report [2] - For the current fiscal year, Valmont is projected to achieve earnings of $16.88 per share on revenues of $4.05 billion, reflecting a 12.68% increase in EPS despite a 2.93% decline in revenues [2] - The next fiscal year forecasts an EPS of $17.74 and revenues of $4.18 billion, indicating year-over-year changes of 5.11% and 3.09%, respectively [2] Valuation Metrics - Valmont's stock trades at 18.4 times the current fiscal year EPS estimates, which is above the peer industry average of 17.8 times [4] - On a trailing cash flow basis, the stock is valued at 15.6 times compared to the peer group's average of 11.5 times, suggesting it is not among the top value stocks [4] Zacks Rank and Style Scores - Valmont holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, indicating strong potential for future performance [5] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B, which aligns with investment strategies favoring stocks with strong growth potential [3][5]

Core Insights - The global precision irrigation market was valued at approximately US$3 Billion in 2023 and is projected to grow to US$4.1 Billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030 [1][13]. Market Overview - Precision irrigation is an advanced agricultural technique that optimizes water application based on real-time data and specific field conditions, contrasting with traditional methods that apply water uniformly [2]. - The technology encompasses various systems such as sprinkler, drip, and boom systems, utilizing sensors, GPS, satellite imagery, and data analytics to enhance water management [2][3]. Technological Advancements - The integration of IoT devices and wireless sensor networks has improved the accuracy of soil moisture monitoring, enabling real-time irrigation decisions [3]. - Advanced algorithms and machine learning models are utilized to predict irrigation needs based on crop type, growth stage, and weather forecasts [3][4]. - Satellite and drone imagery facilitate precise mapping of field variability, enhancing the efficiency and accessibility of precision irrigation [4]. Applications and Benefits - Precision irrigation is applied across various sectors, including arable farming, horticulture, and viticulture, optimizing water use for crops and supporting high-value crop production [5]. - Key benefits include water conservation, improved crop yield and quality, reduced energy and labor costs, and minimized environmental impact [6]. Market Growth Drivers - The market growth is driven by increasing awareness of water scarcity and the need for sustainable water management in agriculture [7]. - Technological advancements that enhance irrigation system efficiency and automation are significant contributors to market expansion [8]. - Government initiatives promoting water conservation and advanced agricultural technologies further support market growth [8]. Regional Insights - The U.S. precision irrigation market was estimated at approximately US$818.5 Million in 2023, while China's market is forecasted to grow at a CAGR of 7.3% to reach US$861.7 Million by 2030 [9]. - The crop-based application segment is expected to reach US$3.6 Billion by 2030, growing at a CAGR of 4.6%, while the non-crop-based application segment is projected to grow at a 3.0% CAGR [9]. Key Players - Major players in the precision irrigation market include Agsmart Pty Ltd., EPC Industrie' Ltd., Grodan (ROCKWOOL B.V.), Jain Irrigation Systems Ltd., and others [16].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various research services [1] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Style Score assesses trends in stock prices and earnings outlooks, using factors like one-week price change and monthly earnings estimate changes [3] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [4] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in portfolio creation [5] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [5] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [6] Company Spotlight: Valmont Industries - Valmont Industries, headquartered in Omaha, NE, specializes in fabricated metal products and mechanized irrigation systems [8] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a Momentum Style Score of B [8] - Valmont's shares have increased by 2.1% over the past four weeks, and its earnings estimate for fiscal 2024 has risen by $0.24 to $16.88 per share [8]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scor ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics [2][3][4] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to help investors build successful portfolios [5][6] Zacks Style Scores - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [2] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [3] - The Momentum Score indicates favorable times to invest in high-momentum stocks based on price changes and earnings estimate trends [3] - The VGM Score combines all three Style Scores to provide a comprehensive indicator for stock selection [4] Zacks Rank and Style Scores Integration - Stocks with a Zacks Rank of 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [6] Company Spotlight: Valmont Industries (VMI) - Valmont Industries is engaged in producing fabricated metal products and mechanized irrigation systems, with a Zacks Rank of 3 (Hold) and a VGM Score of A [7] - The company forecasts a year-over-year earnings growth of 12.7% for the current fiscal year, supported by positive earnings estimate revisions [7] - Valmont Industries has an average earnings surprise of 15.9%, making it a potential pick for growth investors [7]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Scor ...

Valmont Industries (VMI) reported $1.04 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.6%. EPS of $4.76 for the same period compares to $4.37 a year ago.The reported revenue represents a surprise of -1.45% over the Zacks Consensus Estimate of $1.06 billion. With the consensus EPS estimate being $4.04, the EPS surprise was +17.82%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which look ...

Have you been paying attention to shares of Valmont Industries (VMI) ? Shares have been on the move with the stock up 10.3% over the past month. The stock hit a new 52-week high of $307.67 in the previous session. Valmont Industries has gained 29.6% since the start of the year compared to the 8.7% move for the Zacks Industrial Products sector and the 2.2% return for the Zacks Steel - Pipe and Tube industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it h ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $1 billion, similar to the previous year, while operating income increased by 10.2% to $147.3 million, resulting in operating margins improving to 14.2% of net sales [20][21] - Diluted earnings per share rose to $4.91, a 16.6% increase year-over-year, which included a tax benefit of approximately $3 million [20][21] Business Line Data and Key Metrics Changes - Infrastructure segment sales decreased by 1% year-over-year to $762.7 million, with higher volumes in utility but a shift towards distribution and substation products impacting sales growth [21] - Agriculture segment sales grew slightly to $281.7 million, driven by increased replacement sales in North America due to severe weather, although international sales decreased primarily due to lower demand in Brazil [22][23] Market Data and Key Metrics Changes - In North America, severe weather events drove strong demand for replacement equipment, while international markets showed mixed results, with Brazil experiencing continued softness [8][12] - The outlook for the Infrastructure business remains strong, driven by elevated CapEx spending and a multi-year energy transition, while the Agriculture segment faces challenges due to declining net farm income and lower grain prices [10][12] Company Strategy and Development Direction - The company is focusing on enhancing profitability and return on invested capital by adjusting production to meet customer needs and implementing strategic pricing actions [8][9] - A refined strategy is being executed to concentrate growth on areas that align with core competencies, with a focus on customer needs and operational excellence [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market dynamics and long-term megatrends, emphasizing the importance of sustainability and innovation in driving future growth [17][18] - The outlook for 2024 has been revised, with expected sales declines in certain segments but an increase in diluted earnings per share forecasted [25][27] Other Important Information - The company reported strong cash flows and a solid balance sheet, with a focus on capital allocation strategies that balance growth investments with returning cash to shareholders [24][25] - Sustainability remains a core focus, with the company surpassing three of its four stated environmental goals for 2025 [17][18] Q&A Session Summary Question: Can you elaborate on the strategic adjustments in the solar business? - Management decided to exit commoditized solar products where they cannot add value, focusing instead on distributed generation (DG) where they have seen a 30% year-over-year revenue increase [32][34] Question: How does the mix between North America and International Agriculture sales look? - North America sales are expected to decrease mid-single digits, while international sales are projected to decline slightly more than 15% due to lower grain prices impacting buying behavior [38][39] Question: What are the expectations regarding pricing and input costs? - Management plans to maintain pricing leadership and does not foresee broad-based pricing reductions, despite lower input costs from steel [42][43] Question: What is the outlook for the Infrastructure segment's margins? - The company expects to sustain improved margins due to strong market demand and internal efficiency measures, with a focus on continuous improvement [46][47] Question: What is the status of the telecom business? - There are signs of stabilization in the telecom sector, with expectations for growth in the second half of the year as carriers focus on increasing capacity [51] Question: Can you discuss the project pipeline in Agriculture? - The company has a strong project pipeline driven by food security and water scarcity, particularly in the Middle East and North Africa, which is expected to offset weaknesses in North America and Brazil [54][55]