ITT (ITT) Shows Strong Momentum: Is It a Good Time to Invest?
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation of selling them at even higher prices. The Zacks Momentum Style Score helps investors identify stocks with strong momentum indicators.
ITT's Performance Metrics: ITT currently holds a Momentum Style Score of B and a Zacks Rank of #2 (Buy). The company has shown significant price increases over various time frames, outperforming both its industry and the S&P 500.
Earnings Estimate Revisions: Recent trends in earnings estimate revisions for ITT have been positive, with upward adjustments contributing to a consensus estimate increase from $6.48 to $6.50 over the past 60 days.
Investment Recommendation: Given its strong momentum indicators and positive earnings revisions, ITT is recommended as a solid pick for investors looking for stocks poised for near-term growth.
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ITT Increases Dividend for 14th Consecutive Year While Retaining 77% of Earnings
Dividend Safety and Growth: ITT maintains a low payout ratio of 22.9% and has a strong free cash flow coverage of 4.2 times its dividend obligations, allowing for consistent dividend growth at a 19% annual rate over the past five years.
Financial Stability: The company has a conservative debt to equity ratio of 0.41x and an impressive interest coverage ratio exceeding 22 times, indicating strong financial health and the ability to service its debt comfortably.
Dividend History: ITT has increased its dividend for over 14 consecutive years, demonstrating a commitment to returning value to shareholders, even during economic downturns like the 2020 pandemic.
Investment Consideration: While ITT offers a modest dividend yield of 0.76%, it is more suitable for investors focused on long-term dividend growth rather than immediate high yields.
ITT Announces Public Offering of 7 Million Shares at Set Price
Public Offering Details: ITT Inc. has priced its public offering of 7 million shares at $167 each, aiming for net proceeds of approximately $1.14 billion.
Use of Proceeds: The funds will primarily support the acquisition of SPX FLOW, Inc., with any unused proceeds allocated for general corporate purposes.
Underwriter Option: The company has granted underwriters a 30-day option to purchase an additional 1,050,000 shares at the same price of $167 per share.
Closing Date: The offering is expected to close on December 10.
