WNC - Astec Industries: Expect Underperformance To Continue For As Long As Backlog Is Declining
2024-06-21 09:24:26 ET
Summary
- Astec Industries has been underperforming the broader market by quite a bit in recent months due to weak financial results.
- Despite improved 2023 fiscal year results, 2024 is showing signs of trouble with falling backlog and declining revenue and profits.
- The company's valuation looks fairly valued compared to similar firms, but with ongoing issues, keeping the 'sell' rating for now seems prudent.
Back around the middle of November of last year, I ended up revisiting a company by the name of Astec Industries ( ASTE ). Odds are, even if you haven't heard of the company before, you have had exposure to its industry. That is because the company is focused on producing and selling equipment and components that are used in road building and other construction related activities. Conceptually, I think this is an interesting space to play in. However, I ended up downgrading the stock from a ‘hold’ to a ‘sell’ because of mixed financial performance and declining backlog....
Astec Industries: Expect Underperformance To Continue For As Long As Backlog Is Declining