2024-04-02 03:59:17 ET
Summary
- Lindsay Corporation has struggled in the market, with shares down 2.6% while the S&P 500 is up 24.5%.
- Weak revenue and profits, as well as concerns about low farming income, have contributed to LNN stock's underperformance.
- The company's international irrigation operations and infrastructure operations have seen significant declines in revenue.
- Continued weakness is likely to persist and shares are pricey compared to similar firms.
Times have been tough for some companies, even as the broader market jets higher. One firm that has struggled, for instance, is Lindsay Corporation ( LNN ), a relatively small business with a market capitalization of $1.28 billion. For those not aware, the enterprise produces and sells irrigation systems and various infrastructure products such as railroad signs, and terminals, and crash cushions. Back in October of last year, I revisited the stock and ended up keeping it rated a ‘hold’ to reflect my view that shares would be unlikely to outperform the broader market for the foreseeable future. But since then, things have gotten a lot worse....
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Lindsay Corporation: Downgrading Shares On Weak Farm Income