CECO Environmental Corp. (CECE)

CECO Environmental has seen incredible operating momentum in recent years, aided by a recalibrated strategy. The company is guiding for continued growth and pursuing a sizeable M&A deal here. I like this momentum, yet expectations have risen quite a bit, certainly if we consider lagging earnings growth.

Although U.S. stocks closed lower on Tuesday, there were a few notable insider trades.

DALLAS , Nov. 2, 2023 /PRNewswire/ -- CEC O Environmental Corp.  ( N asdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment and industrial equipment, today announced its investor conference schedule for November 2023: Nov. 9, 2023 – The Baird's Global Industrial Conference Peter Johansson, Chief Financial & Strategy Officer Chicago - 1:45 pm CT presentation and conducting meetings throughout the day. Nov. 15, 2023 – The 15th Annual Southwest IDEAS Conference Todd Gleason, Chief Executive Officer Dallas – 8:00 am CT presentation and conducting meetings throughout the day.

The environmental engineering specialist closed its most recent asset buy. It is now the proud owner of a complementary business, Kemco Systems.

CECO Environmental Corp. has reported record-high orders, revenue, gross profit, and backlog in its Q2 2023 earnings results. The company has raised its forecast for FY 2023 for the third time, citing increased focus on short-sale cycle projects as a driver for growth. Investors should remain cautious of increased leverage and a decrease in YoY cash flow.

Ceco beat top-line expectations for the quarter and raised full-year revenue guidance. The company finished the quarter with a record backlog.

CECO Environmental continues to grow and transform its business, with two recent acquisitions and a strong Q1 result. The company has raised its full-year 2023 guidance, expecting revenue to exceed $485 million and adjusted EBITDA to exceed $50 million. With buy ratings across the board and a record backlog, CECO is likely to outperform in the coming years, despite potential risks from a severe recession or macroeconomic uncertainty.

CECO (CECE) delivered earnings and revenue surprises of 42.86% and 11.69%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?

CECE vs. DCI: Which Stock Is the Better Value Option?

Here is how CECO Environmental (CECE) and Greif (GEF) have performed compared to their sector so far this year.

CECO (CECE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

A company that is capable of generating earnings well above its interest expense can withstand financial hardship. National Fuel (NFG), Herc Holdings (HRI), ONEOK (OKE) and CECO Environmental (CECE) are strong enough to meet financial obligations.

CECE vs. CWST: Which Stock Is the Better Value Option?

Here is how CECO Environmental (CECE) and Energy Recovery (ERII) have performed compared to their sector so far this year.

CECO Environmental (CECE) closed at $9.54 in the latest trading session, marking no change from the prior day.

CECE is an American-OEM supplying solutions to the industrial Air/Water/Energy sectors. CECE's turnaround story is led by an impressive new management team with excellent sector experience seldom seen in small-caps. CECE's transformation is centered around the shift from being a cyclical long-cycle project focused company to a higher margin, more predictable, shorter-cycle projects within sectors seeing secular tailwinds.