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AZZ Inc has the Highest Earnings Yield in the Heavy Electrical Equipment Industry (AZZ, GLPW, POWR)

Published on Tue, 02/26/2013 - 11:22
By Mallory Stone

Below are the three companies in the Heavy Electrical Equipment industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.

AZZ Inc (NYSE:AZZ) is highest with an earnings yield of 4.8%. AZZ Incorporated manufactures specialty electrical equipment and components for the global power generation, power transmission, and distribution markets. The Company also provides hot dip galvanizing services to the steel fabrication industry across the United States.

There is potential upside of 8.6% for shares of AZZ Inc based on a current price of $43.59 and an average consensus analyst price target of $47.33. The stock should discover initial support at its 50-day moving average (MA) of $40.59 and subsequent support at its 200-day MA of $34.53.

Global Power Equipment Group (NASDAQ:GLPW) is next with an earnings yield of 4.0%.

Finishing up the top three is PowerSecure International (NASDAQ:POWR), with an earnings yield of 1.7%.

By Mallory Stone
mstone@fnno.com