KMT - Here's Why Investors Should Avoid Kennametal for Now | Benzinga
Kennametal Inc. (NYSE: KMT) has failed to impress investors with its recent operational performance due to weakness across its segments and rising operating expenses. Also, given Kennametal's extensive international presence, foreign currency headwind adds to the uncertainty.
Based in Latrobe, PA, Kennametal is a manufacturer, marketer and distributor of high-speed metal cutting tools, tooling systems and wear-resistant parts. The company's products are used by manufacturers and suppliers in oil and gas exploration, road construction and other industries. Shares of Kennametal have lost 11% in the year-to-date period. KMT currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
Let's discuss the factors that may continue taking a toll on the firm.
Factors Affecting Kennametal
Business Weakness: Lower volume in general engineering, energy and earthwork end markets, owing to the declines in industrial activity and decreased underground mining in Asia Pacific, is affecting the Infrastructure segment. Also, reduced oil and gas activities in the United States owing to decreased rig counts remain a ...