Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after over three years of struggle, with the ISM Manufacturing PMI rising to 52.6 in January from 47.9 in December, marking the highest reading since 2022 and the first expansion in 12 months [1][3][9] - The New Orders Index increased by 9.7% to 57.1%, the highest level since February 2022, while the Production Index rose to 55.9%, a 5.2% increase from December [4][9] Economic Context - Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has reduced borrowing costs and price pressures, thereby driving demand [5] - The Federal Reserve maintained interest rates in the range of 3.5% to 3.75% at the January meeting, indicating openness to further rate cuts depending on inflation trends [6] Investment Opportunities - Four stocks from the manufacturing sector are highlighted for investment: ATS Corporation, Nordson Corporation, Donaldson Company, Inc., and RBC Bearings Incorporated, all carrying a Zacks Rank 2 (Buy) [2] - ATS Corporation is expected to have an earnings growth of 18.9% for the current year, with a 0.8% improvement in the Zacks Consensus Estimate over the past 60 days [7] - Nordson Corporation anticipates a 9.3% earnings growth for the current year, with a 2.3% increase in the Zacks Consensus Estimate [10][11] - Donaldson Company, Inc. expects a 10.1% earnings growth for the current year, with a 0.7% improvement in the Zacks Consensus Estimate [12] - RBC Bearings Incorporated projects an earnings growth of 18.6% for the current year, with a 0.3% increase in the Zacks Consensus Estimate [13]

Core Insights - Crane reported exceptional fourth-quarter results for 2025, with adjusted EPS of $1.53, a 21% increase year-over-year, and full-year adjusted EPS growth of 24% compared to 2024, driven by strong performance in aerospace and advanced technologies [2][3][5] Financial Performance - The company achieved a 5.4% growth in core sales for Q4 and a 16% increase in adjusted operating profit, attributed to higher productivity and favorable pricing net of inflation [1][2] - Adjusted free cash conversion reached 102% for the year, indicating strong cash performance [1] - The adjusted operating margin for Process Flow Technologies expanded by 170 basis points to 22%, despite flat sales and softer chemical orders [5][7] Segment Highlights - Aerospace and Advanced Technologies (AAT) saw a 15% increase in Q4 sales to $272 million, with a record backlog exceeding $1 billion, up 25% year-over-year [6][8] - Process Flow Technologies (PFT) reported flat sales of $309 million in Q4, with core sales down 1.5%, but still managed to expand margins due to productivity and pricing [7][8] Acquisitions and Integration - Crane completed multiple acquisitions at the start of 2026, including Reuter-Stokes, Panametrics, Druck, and Optek-Danulat, which are expected to be slightly accretive to earnings in 2026 [4][9][10] - The integration of these businesses is progressing well, with expected cost and growth synergies [10] Leadership Transition - Alex Alcala will become CEO on April 27, 2026, with Max Mitchell transitioning to Executive Chairman [11] 2026 Guidance - Crane provided initial adjusted EPS guidance for 2026 of $6.55 to $6.75, reflecting a change in non-GAAP presentation to exclude acquisition-related intangible amortization [12] - The company anticipates Q1 2026 to be seasonally soft, with earnings weighted 45% to the first half and 55% to the second half of the year [13] Market Outlook - AAT is expected to achieve core sales growth at the high end of the long-term growth assumption of 7% to 9% in 2026, while PFT is projected to have flat to low single-digit core growth due to sluggish orders [16][17] - The nuclear sector is viewed as an increasingly attractive area for growth, particularly following the acquisition of Reuter-Stokes [18]

Company Overview - ParaZero Technologies Ltd. focuses on creating autonomous parachute safety systems for commercial drones, enhancing safety as drone usage expands globally [1] - Top Ships Inc. operates in the transportation of crude oil and other bulk liquids [2] - LiqTech International, Inc. is a clean technology company that designs filtration systems [3] Stock Performance - ParaZero Technologies Ltd. is currently trading at $1.41 with a target price of $1.42, indicating a minimal growth potential of 0.44% [1][5] - Top Ships Inc. is trading at $5.01, significantly above its discounted cash flow (DCF) valuation of $2.97, reflecting a price difference of -40.70% [2][5] - LiqTech International, Inc. is trading at $1.77 with a DCF valuation of $1.87, showing a positive price difference of 6.00% [3][5] Earnings and Valuation - Top Ships Inc. has a positive earnings per share (EPS) of 2.22 and a price-to-earnings (P/E) ratio of 5.54, yet is trading above its DCF valuation [2][5] - LiqTech International, Inc. has a negative EPS of -1 and a P/E ratio of -1.12, but its current price suggests higher growth potential compared to ParaZero Technologies Ltd. [3][4][5] Investment Outlook - The comparison indicates that while ParaZero Technologies Ltd. has modest growth potential, LiqTech International, Inc. stands out with higher growth prospects despite negative earnings [4]

Core Viewpoint - 3M Company, a global manufacturing and technology firm, has demonstrated strong financial performance and market resilience, with significant growth in revenue and earnings, bolstering investor confidence. Group 1: Company Overview - 3M Company is based in Saint Paul, Minnesota, and has a market capitalization of $90.6 billion, producing a diverse range of products across various sectors including industrial, safety, consumer, healthcare, and electronics [1] - The company is classified as a "large-cap stock," emphasizing its size and influence in the conglomerates industry, serving customers in over 200 countries [2] Group 2: Stock Performance - Currently, 3M shares are trading 1.4% below their 52-week high of $172.85, reached on October 24, with a 9.6% increase in share price over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) [3] - Year-to-date, 3M shares have risen by 32.1%, significantly higher than XLI's 14.9% return, and over the past 52 weeks, the stock has increased by 27.7%, compared to XLI's 5.2% gain [4] Group 3: Financial Performance - Following a strong Q3 earnings release, 3M shares surged by 7.7% on October 21, with total revenue growing 3.5% year-over-year to $6.5 billion and adjusted EPS increasing by 10.6% to $2.19, surpassing analyst expectations [5] - The adjusted operating income margin expanded by 170 basis points to 24.7%, indicating improved profitability, and the company raised its fiscal 2025 adjusted EPS guidance to a range of $7.95 to $8.05 [5]

Core Viewpoint - The market anticipates Donaldson (DCI) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending October 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on December 4, with a consensus EPS estimate of $0.93, reflecting a year-over-year increase of 12.1%. Revenues are projected to be $923.78 million, up 2.6% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.66%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Donaldson is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.86%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Donaldson exceeded the expected EPS of $1.02 by posting $1.03, achieving a surprise of 0.98%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - Despite the potential for an earnings beat, other factors may influence stock performance, and the current combination of a negative Earnings ESP and a Zacks Rank of 3 complicates predictions for Donaldson's ability to exceed consensus estimates [15][12].

Core Viewpoint - Parker-Hannifin has agreed to acquire Filtration Group for $9.25 billion, enhancing its industrial portfolio with a significant filtration technologies manufacturer [1][2]. Group 1: Acquisition Details - The acquisition will be financed through a mix of new debt and cash reserves [2]. - The transaction is subject to regulatory approvals and is expected to close within six to twelve months [2]. Group 2: Filtration Group Overview - Filtration Group, a privately held affiliate of Madison Industries, specializes in filtration systems for industrial, automotive, and heating-and-cooling applications [3]. - Approximately 85% of Filtration Group's sales are derived from the aftermarket, providing consistent recurring revenue across various product lines [3]. Group 3: Financial Projections and Strategic Impact - Filtration Group is projected to achieve sales of around $2 billion by 2025 [4]. - The acquisition is part of Parker-Hannifin's strategy to invest in high-quality businesses that enhance portfolio transformation, accelerate sales growth, and improve profitability [4]. - This deal is expected to create one of the largest global industrial filtration businesses [4]. Group 4: Company Background - Parker-Hannifin, based in Cleveland, manufactures motion and control technologies with annual sales nearing $20 billion [5].

Core Insights - Atmus Filtration Technologies (ATMU) reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.61 per share a year ago [1][2] - The company achieved revenues of $447.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.84% and increasing from $403.7 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +13.11%, following a previous quarter surprise of +13.64% [2] - Atmus Filtration has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - Atmus Filtration shares have increased approximately 18.7% since the beginning of the year, outperforming the S&P 500's gain of 14.3% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $419.78 million, and for the current fiscal year, it is $2.57 on revenues of $1.7 billion [8] - The estimate revisions trend prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Pollution Control industry, to which Atmus Filtration belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Group 1 - Donaldson Company, Inc. (NYSE:DCI) is recognized as one of the 11 Best Value Dividend Stocks to buy currently [1] - The company is a significant producer of filtration systems for industrial, mobile, and life sciences applications, focusing on contaminant removal from air, liquids, and gases [2] - Donaldson operates through three main divisions: Mobile Solutions, Industrial Solutions, and Life Sciences, with a recent emphasis on market expansion and proprietary technology advancements [3] Group 2 - Donaldson has a strong dividend history, rewarding shareholders with increasing dividends for 29 consecutive years, currently offering a quarterly dividend of $0.30 per share and a dividend yield of 1.48% as of September 26 [4]

Company Overview - Pentair plc (PNR) has a market capitalization of $18 billion and provides smart, sustainable water solutions for homes, businesses, and industries globally [1] - The company operates through three segments: Flow, Water Solutions, and Pool, focusing on advanced technologies for water treatment, reuse, and efficient management [1][2] Financial Performance - In Q2 2025, Pentair reported adjusted EPS of $1.39, exceeding consensus estimates and reflecting a 14% year-over-year increase [5] - Net sales for the quarter grew 2% year-over-year to $1.123 billion, surpassing expectations, while adjusted segment operating margin expanded by 170 basis points to 26.4% [5] - Management raised full-year adjusted EPS guidance to $4.75 - $4.85 and increased the 2025 sales growth outlook to 1% - 2% [5] Stock Performance - Pentair's stock has increased 10.1% year-to-date, outperforming the Dow Jones Industrials Average's 9.5% gain [4] - Over the past 52 weeks, Pentair shares have gained 15.5%, compared to the Dow Jones' 10.6% return [4] - The stock has consistently traded above its 50-day moving average since late April and above its 200-day moving average since early May [4] Market Position - Pentair is classified as a "large-cap" stock, with a portfolio that includes residential and commercial pool equipment, filtration systems, pumps, and water treatment products [2] - Compared to its rival Illinois Tool Works Inc. (ITW), which has seen a YTD increase of only 3.1% and a 1.9% rise over the past 52 weeks, Pentair has shown stronger performance [6] - Analysts have a consensus rating of "Moderate Buy" for Pentair, with a mean price target of $115.83, indicating a potential premium of 4.8% to current levels [6]