FSTR Overview

Validea's Upgrades: Validea's Price/Sales Investor model, based on Kenneth Fisher's strategy, has upgraded several stocks, indicating improved ratings due to strong fundamentals and valuations.

NACCO Industries: The rating for NACCO Industries Inc. increased from 48% to 70%, reflecting its position as a small-cap value stock in the Coal industry with solid fundamentals.

Primoris Services Corp: Primoris Services Corp's rating rose from 60% to 80%, highlighting its growth potential in the Construction Services industry, driven by its critical infrastructure services.

OraSure Technologies: OraSure Technologies Inc. saw its rating improve from 58% to 70%, showcasing its growth in the Biotechnology & Drugs sector through innovative health diagnostics solutions.

Validea's Upgrades: Today's upgrades for Validea's Price/Sales Investor model highlight significant changes in stock ratings for several companies based on Kenneth Fisher's investment strategy, which favors low P/S ratios and strong fundamentals.

Archer-Daniels-Midland Co (ADM): The rating for ADM, a large-cap growth stock in the Food Processing industry, improved from 50% to 80%, indicating strong interest due to its solid fundamentals and valuation.

Commercial Metals Co (CMC): CMC, a mid-cap growth stock in the Construction Supplies industry, saw its rating rise from 50% to 90%, reflecting strong underlying fundamentals and valuation metrics.

L.B. Foster Co (FSTR): FSTR, a small-cap growth stock in the Railroads industry, also experienced a rating increase from 60% to 90%, suggesting strong interest based on its fundamentals and valuation.

Third Quarter Sales Performance: L.B. Foster Company reported a 0.6% increase in net sales for Q3 2025 compared to the previous year, driven by a 4.4% rise in the Infrastructure segment, while Rail sales decreased by 2.2%.

Backlog and New Orders: The company's backlog rose to $247.4 million, an 18.4% increase year-over-year, with significant growth in Rail business units, particularly a 59.9% increase in Rail Products.

Financial Metrics: Operating cash flow for the quarter was $29.2 million, with free cash flow at $26.4 million, contributing to a reduction in total debt and a gross leverage ratio of 1.6x.

Future Outlook: The company anticipates a strong fourth quarter, projecting a 115% increase in Adjusted EBITDA on 25% sales growth, supported by improved demand in the Rail segment and a focus on cost containment.

Earnings Expectations: L.B. Foster is set to report earnings, with analysts expecting a 12.3% revenue growth to $154.4 million and adjusted earnings of $0.62 per share, following a mixed previous quarter.

Market Performance: The company has seen a 3.1% increase in share price over the past month, with an average analyst price target of $28, slightly above the current price of $27.40.

Peer Comparisons: Competitors like Columbus McKinnon and GE Aerospace have reported strong revenue growth, indicating a positive trend in the general industrial machinery sector.

Investment Insights: The article suggests that young investors may benefit from understanding historical market trends, particularly in technology, as they consider future investments in generative AI and enterprise software stocks.

Cleveland-Cliffs Quarterly Performance: Cleveland-Cliffs reported a quarterly loss of $0.45 per share, slightly better than the expected loss of $0.48, and revenues of $4.73 billion, missing estimates by 3.12%. The company has surpassed consensus EPS estimates two out of the last four quarters.

Stock Outlook and Industry Context: The stock currently holds a Zacks Rank #4 (Sell) due to unfavorable earnings estimate revisions, suggesting it may underperform the market. The Steel - Producers industry is ranked in the bottom 37% of Zacks industries, indicating potential challenges ahead for Cleveland-Cliffs.