August 19, 2008

MANITOWOC CO: Funny Name, Cheap Stock

I came across Manitowoc while looking at the stocks that compose the Benjamin Graham Small Cap Value Elements portfolio as detailed here.

Doing some more research on the company, I came across a small article here that highlights the stock:

  • With a huge RoE that is north of 30%, low debt ratios and trading at less than 8 times this years earnings, the threat of a downturn in the economy seems to be more than priced into this stock.
  • This stock is down more than 50% from its 52 week high. Analysts are calling for it to return to the upper $30s, giving it a 50% upside from here.
Forbes also has an article on the company that does a more in depth financial analysis.

This stock has a P/E of under 8 and a forward P/E of just over 6. It also has a PEG under 1.0. Analysts are expecting earnings growth of at least 20% for the next five years. No matter how you slice it, this is a stock that has been unfairly beaten down in the last year. Today's price of $24.33 is a new 52 week low for the stock and looks like a great place to get in.

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