Watch This Stock For an Attractive Entry Point

Alamo Group stock is up 10% year-to-date

facebook twitter linkedin


Alamo Group Inc. (NYSE:ALG) is one of the world's largest designers and manufacturers of industrial equipment, operating 27 plants in North America, Europe, Australia, and Brazil.

After a record high of $165.97 on May 10, Alamo Group stock pulled back to its 200-day moving average. A bounce from here has ALG last seen trading at $152.11and above the 10% year-to-date level. The shares also have a forward dividend of $0.56 and a dividend yield of 0.37%.

From a fundamental point of view, Alamo Group stock isn’t the best investment right now at its current valuation.  Alamo Group stock trades at a high price-earnings ratio of 30.78. In addition, ALG has struggled to maintain steady net income growth in recent years. Alamo Group experienced back-to-back years of bottom-line declines, with net income decreasing by 23% between fiscal 2018 and fiscal 2020. ALG has managed to maintain consistent revenue growth even throughout the COVID-19 pandemic, making it difficult to imagine Alamo Group stock losing significant value in the long-term. However, investors are better suited waiting for another bout of weakness --like last month's pullback --  or some strong earnings to justify Alamo Group stock’s high valuation.

Don't expect much of a contrarian unwinding of pessimism though. A slim 1% of ALG's total available float is sold short, and the two analysts in coverage both rate the stock a "buy" or better.

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!