There are a lot of different ways to play the stock market. One can be successful using just about any discipline–be it value, growth, income… you name it.
But sometimes–if you are lucky–you run across a stock that fits into more than one category. These stocks offer investors both growth and value characteristics that result in premium returns and reduced risk. (Not to mention, investors can buy future earnings at a discount, while getting an extra margin of safety.)
In this current market, shares of The Manitowoc Company (MTW), the Wisconsin-based construction equipment maker, truly offers investors the best of both worlds.
Great American Manufacturing
Obviously if you are a strong believer in the global growth boom, buying Manitowoc is a no-brainer.
The company’s biggest business is providing lifting equipment for the global construction industry that accounted for 81% of recently released Q2 revenues. Even as critics proclaim that China’s economic growth will slow down after the 2008 Olympic Games (see also, Investment Opportunities of Olympic Proportions“), emerging markets like India and Brazil can inevitably pick up the slack.
For those of you who are still skeptical on the global growth front, MTW offers instant diversification from many of its other divisions, namely global food service equipment manufacturing and marine sales.
MTW’s food service equipment division which is responsible for making cold-focused equipment for restaurants and the global food service industry, saw solid overseas growth last quarter, even as the U.S. fell stagnant. Of course, any future growth in the food service equipment industry is dependent upon expansions–and that’s exactly what The Manitowoc Company plans to do.
Back in May, MTW announced its intention to acquire British kitchen equipment maker, Enodis–an incredibly smart move from my Rational point of view. Enodis, headquartered in Tampa, Fla., produces commercial ice-making machines and deep fryers and boasts a client list that includes McDonald’s (MCD) and Wal-Mart (WMT). Acquiring Enodis will not only broaden the company’s domestic market share, but allow it to capitalize on rising demand for fast food in the Asian market.
The Manitowoc Company is also a leading provider of shipbuilding, ship repair and conversion services for government, military and commercial customers. This division has seen an outstanding 20% rise in first-half revenues compared to last year.
So there you have three industries that I expect to grow handsomely over the coming years. What about valuation you ask? MTW trades for just 89% of sales and only 7 times fiscal ’09 earnings estimates.
That qualifies it as an amazing value in my Rational Investor play book. Cash-in on this great American super stock today.
This article was written by Jamie Dlugosch, a contributor to Investors Insights, part of InvestorPlace Media. For more actionable insights like this, visit www.InvestorPlace.com.
