Core Industry Outlook - The Zacks Industrial Services industry's near-term outlook is negatively impacted by a weak manufacturing sector, with customers concerned about tariffs and increased input costs eroding margins [1] - Manufacturing activity, which contributes approximately 70% to the industry's revenues, has been in contraction for several months, with the latest reading at 48.2% indicating ongoing struggles [4] Growth Catalysts - Despite current challenges, the rise in e-commerce activities is expected to be a significant growth driver for the industry, with companies investing in automation and digitization to meet customer demand [2][6] - Companies like Kion Group, Andritz, SiteOne, and MSC Industrial are positioned for growth by lowering costs and increasing productivity [2] Industry Description - The Zacks Industrial Services industry includes companies providing industrial equipment and MRO services, serving a diverse range of customers from commercial to healthcare [3] - Products offered include power tools, hand tools, lubricants, and personal protective equipment, which are essential for maintenance but not directly tied to core customer products [3] Current Challenges - The industry faces significant inflation, with rising labor, freight, and fuel costs, alongside labor shortages impacting operational efficiency [5] - The imposition of tariffs is expected to further increase costs for industry players, prompting them to focus on pricing actions and cost-cutting measures [5] Stock Market Performance - The Industrial Services industry has underperformed compared to its sector and the S&P 500, with a growth of only 0.1% over the past year, while the sector grew by 7.1% and the S&P 500 by 19.3% [9] - The industry's current valuation, based on the trailing 12-month EV/EBITDA ratio, stands at 35.72X, significantly higher than the S&P 500's 18.83X and the Industrial Products sector's 25.54X [12] Company Highlights - **Andritz**: Order intake increased by 14.5% year-over-year in Q3 2025, with revenues projected between €8 billion and €8.3 billion ($9.42-$9.8 billion) [16] - **Kion Group**: Experienced rising customer demand and announced a cost-saving efficiency program expected to save €140–€160 million annually from 2026 [21] - **SiteOne**: The largest national distributor of landscape supplies, focusing on acquisitions and operational excellence, with a projected 24% growth in earnings for 2025 [24][27] - **MSC Industrial**: Returned to sales growth in Q4 2025, with a 5% increase in earnings per share, and aims for growth above the industry index [28][29]

Core Viewpoint - Kion Group has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Business Improvement Indicators - The upgrade in Kion Group's rating suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Earnings Estimate Revisions - Kion Group is projected to earn $0.86 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Kion Group has increased by 45.8%, indicating a significant upward revision in earnings estimates [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - The upgrade of Kion Group to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: Kion Group (KIGRY) Analysis - Kion Group (KIGRY) has shown a four-week price change of 7.3%, indicating growing investor interest [4] - The stock gained 7.4% over the past 12 weeks and has a beta of 2.19, suggesting it moves 119% higher than the market [5] - KIGRY has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - KIGRY is trading at a Price-to-Sales ratio of 0.79, suggesting it is undervalued at 79 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides KIGRY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may also present investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks [9]

Group 1 - Kion Group is currently outperforming its peers in the Industrial Products sector with a year-to-date return of 122%, significantly higher than the sector average of 6.5% [4] - The Zacks Consensus Estimate for Kion Group's full-year earnings has increased by 45.8% in the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Kion Group holds a Zacks Rank of 2 (Buy), suggesting it has the characteristics to outperform the market in the near term [3] Group 2 - Kion Group is part of the Industrial Services industry, which has seen an average loss of 3.9% this year, highlighting Kion Group's strong performance relative to its industry [6] - The Industrial Products sector, which includes Kion Group, is ranked 11 in the Zacks Sector Rank, indicating a relatively strong position among 16 sector groups [2] - Parker-Hannifin, another stock in the Industrial Products sector, has also shown strong performance with a year-to-date return of 35.5% and a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum [3] Group 2: Kion Group (KIGRY) Analysis - Kion Group (KIGRY) has shown a four-week price change of 7.7%, indicating growing investor interest [4] - The stock gained 13.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - KIGRY has a beta of 2.03, suggesting it moves 103% higher than the market in either direction [5] - KIGRY has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - KIGRY is trading at a Price-to-Sales ratio of 0.75, suggesting it is undervalued at 75 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides KIGRY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - Kion Group (KIGRY) has significantly outperformed its peers in the Industrial Products sector, with a year-to-date gain of approximately 119.8% compared to the sector's average return of 6.8% [4] - The Zacks Rank for Kion Group is currently 2 (Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 45.8% increase in the consensus estimate for full-year earnings over the past quarter [3] Company Performance - Kion Group is part of the Industrial Services industry, which consists of 18 companies and currently ranks 202 in the Zacks Industry Rank, having lost an average of 0.4% year-to-date [5] - In comparison, Parker-Hannifin, another stock in the Industrial Products sector, has a year-to-date return of 32.2% and is part of the Manufacturing - General Industrial industry, which has gained 9.1% year-to-date [4][6] Sector Overview - The Industrial Products sector includes 186 individual stocks and holds a Zacks Sector Rank of 12 out of 16 sector groups, indicating a relatively lower performance compared to other sectors [2] - The Zacks Rank system emphasizes earnings estimates and revisions, helping to identify stocks like Kion Group that may outperform the broader market in the near term [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with overvalued shares [1] Group 2: Bargain Momentum Stocks - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Kion Group (KIGRY) Analysis - Kion Group (KIGRY) has shown a price increase of 13.5% over the past four weeks, indicating growing investor interest [3] - KIGRY gained 3.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 2.03, suggesting it moves 103% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - KIGRY has a Momentum Score of A, 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 attract more investors [6] - KIGRY is trading at a Price-to-Sales ratio of 0.75, indicating it is relatively cheap at 75 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - KIGRY is not the only stock that meets the 'Fast-Paced Momentum at a Bargain' criteria; other stocks are also available for consideration [7] - There are over 45 Zacks Premium Screens available to help identify potential winning stock picks based on different investing styles [8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Kion Group (KIGRY) Analysis - Kion Group (KIGRY) has shown a four-week price change of 0.9%, indicating growing investor interest [3] - The stock gained 5.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - KIGRY has a beta of 2.03, suggesting it moves 103% higher than the market in either direction, indicating fast-paced momentum [4] - KIGRY has a Momentum Score of A, 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 attract more investors [6] - KIGRY is trading at a Price-to-Sales ratio of 0.69, indicating it is reasonably valued at 69 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides KIGRY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

Kion Group Q3 2025 Conference Call Summary Company Overview - **Company**: Kion Group (OTCPK: KIGR.Y) - **Date of Call**: October 02, 2025 Key Points Industry and Market Trends - The ITS segment has shown consistent year-on-year momentum, with Q3 2025 expected to reflect typical seasonal patterns, indicating a sequential decline in orders by mid-teens percentage [2][6] - Year-over-year growth in order intake is anticipated, particularly in EMEA and APAC regions, despite a sequential decline due to seasonal factors [2][6] - The overall business environment in Germany is characterized as a cautious recovery, with geopolitical factors influencing market expectations [20][22] Order Intake and Revenue Developments - Order intake in units for Q3 2025 is expected to decrease sequentially, but year-over-year growth may be higher due to a low base from the previous year [2][6] - Revenue in the ITS segment is projected to be marginally below the prior year level, influenced by the exhaustion of a high order backlog from 2024 [3][6] - The SCS segment has seen a recovery in order intake, with expectations of revenue growth due to improved order intake from previous quarters [5][6] Financial Performance - The book-to-bill ratio for the ITS segment is expected to be slightly below one, indicating a decline in the order book compared to the previous year [3][6] - Adjusted EBIT margins are anticipated to decline year-over-year due to increased expenses from long-term incentive programs and lower factory utilization [3][7][8] - Free cash flow is expected to be solidly positive but lower than the prior year due to additional pension funding [10][11] Cost and Pricing Dynamics - The impact of the higher KION share price has led to increased expenses for long-term incentive programs, affecting overall financial performance [4][8] - The pricing dynamics in the forklift market are expected to be influenced by the Producer Price Index (PPI) in Germany, with a cautious outlook on pricing stability [43][45] Future Outlook - The company is still evaluating the impact of Section 232 tariffs on imports to the U.S., with a more detailed update expected in the next report [33][34] - Expectations for the German government’s investment boost are tempered, with a recognition that benefits will take time to materialize [40][42] Additional Notes - Non-recurring expenses related to an efficiency program were recorded in the first half of 2025, with further updates expected in the Q3 report [8][9] - The company is cautious about extrapolating current order intake growth into future quarters, emphasizing the need for a complete view of September's performance before making definitive statements [5][30] This summary encapsulates the key insights from Kion Group's Q3 2025 conference call, highlighting the company's performance, market conditions, and future expectations.