Will Manitowoc Finish 2012 on a High Note?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

With half of 2012 in the record books, it's important to take a look at whether the stocks that interest you can live up to their full potential. By making sure you know about a company's future plans and possible challenges, you can make a better decision about whether it's a smart investment for your portfolio.

Today, let's take a look at Manitowoc (NYSE: MTW  ) . As we saw in our look at Manitowoc last month, the crane builder and food-service equipment provider has seen plenty of ups and downs so far this year. But as it faces new challenges from slowing economic growth around the world, can it find a way to go higher and stay higher? Let's take a quick look at Manitowoc's prospects for the rest of the year and beyond.

Stats on Manitowoc

Average Stock Price Target $16.35
2012 EPS Estimate $0.79
2013 EPS Estimate $1.45
2012 Sales Growth Estimate 11.1%
2013 Sales Growth Estimate 12%
CAPS Rating (out of 5) ****

Source: Yahoo! Finance.

What will the rest of 2012 bring for Manitowoc?
The construction industry has been hot, and so you'd think that Manitowoc would have benefited greatly from surging global construction activity in recent years. But unlike Caterpillar (NYSE: CAT  ) and Joy Global (NYSE: JOY  ) , which have made the most of opportunities in China and other emerging markets, Manitowoc still gets the lion's share of its sales from older, slower-growth economies in North America and Europe.

As a result, how Manitowoc does for the rest of the year depends largely on what happens to European economies. With some calls for a recession there, Manitowoc may not see a rebound for some time.

But the company isn't standing still. Manitowoc is joining Caterpillar and Terex (NYSE: TEX  ) in expanding in Brazil, which is going through a big construction boom in connection with its hosting both the Olympics and the World Cup within the next four years. Moreover, as the company starts to aim at reducing debt, it will be better able to jump on new opportunities for growth.

One concern, though, is valuation. Recent weakness in net income has the company trading at more than 35 times trailing earnings. Although its forward P/E is more in line with its peers, it nevertheless puts pressure on Manitowoc to deliver better results quickly.

Manitowoc has some upside potential, but if it's riskier than you have the stomach for, there are some other ideas you might like better. Let me invite you to learn about three smart long-term stock plays in the Fool's latest special report. It's yours for the taking and is absolutely free, but don't miss out -- click here and read it today.

Click here to add Manitowoc to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Joy Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1936536, ~/Articles/ArticleHandler.aspx, 10/22/2016 4:08:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 18 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
MTW $4.28 Down -0.06 -1.38%
Manitowoc CAPS Rating: ***
CAT $86.33 Down -0.30 -0.35%
Caterpillar CAPS Rating: ***
JOY $27.89 Up +0.02 +0.07%
Joy Global CAPS Rating: ****
TEX $24.76 Up +0.23 +0.94%
Terex CAPS Rating: *****