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The Manitowoc Company

Manitowoc stock NYSE:MTWForward P/E: 11
Long-Term Growth Rate: 42%
ROE: 21

Manitowoc (MTW) makes cranes and foodservice equipment, but it’s the former product that provides all the growth opportunities.

A pickup in non-residential construction in the U.S. should only add to demand for cranes that’s currently being boosted by the energy boom. Farther afield, a rebound in China and other emerging markets will lift sales of construction cranes — especially the type used in rugged terrain.

One thing that probably scares some investors off Manitowoc — and helps tamp down the valuation — is remarkable volatility. With a beta 0f 4.3, MTW is more than four times more volatile than the broader market.

But that hasn’t kept shares from being a market-beater for the year-to-date by about a percentage point. And during the past 52 weeks, MTW is leading the S&P 500 by 15 percentage points.

Despite the torrid growth forecast, shares are on sale, offering a 33% discount to their own five-year average, according to data from Thomson Reuters Stock Reports.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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