In the small town of West Mineral, Kansas, you will see an exhibit called “Big Brutus.”
Once the world’s largest electric shovel at 160 feet, Big Brutus was used to dig coal in the mines of southeast Kansas.
What was a rare colossus is now the norm.
The average height of a truck hauling dirt from mines is more than 22 feet – or four people standing on top of each other!
Companies use this larger equipment because it is faster and more efficient.
And as the excavation of oil, gold and other precious metals continues to rise, the need for this type of heavy machinery will increase.
Revenue from heavy machinery used in agriculture, construction and mining dropped to $ 68 billion in the US during the COVID-19 epidemic.
As can be seen in the chart above, by 2024, estimates show that revenues will reach $ 75.4 billion – a 10% jump – and reach levels we have not seen since before the Corona crash.
Today’s power stock is North American Construction Group Ltd. (Symbol: NOA).
The Canadian company provides heavy equipment, maintenance and mining services in both Canada and the United States
NOA achieves “strong bullish” 99 Out of 100 On our stock rating system, and we expect it to crush the wider market 3 times in the next 12 months.
NOA stock: High value + high growth
Two items stood out to me in my research:
- His stock is Appreciated low Compared to his peers. Its price-to-earnings ratio is low at 10.3, compared to an industry average of 22. NOA’s sales price is 1 equal – its peers’ average is 1.39.
- According to its latest annual presentation, the company has Five long-term contracts for mines with 30+ years of life remaining. The need for NOA machines will not go away any time soon.
Since April 2020, NOA has climbed 173%. It reached a peak of 52 weeks in November 2021.
Some of these gains have diminished, but we see it examining resistance at the $ 15 threshold with a potential breakthrough in the near future.
Shares of North American Construction Group Ltd 99 in total – It’s inside the Top 1% of all stocks we rank.
It also means we are “strong bulls” at NOA and expect it to beat the wider market At least three times in the next 12 months.
In terms of value and growth, you get the best of both worlds with this stock. NOA is ranked in the top 6% of all stocks we rank in both categories – which is rare.
The stock also comes with a 1.72% forward dividend yield, or $ 0.26 per share … so you get paid just to keep it in your account.
Matt Clark, CMSA®
Research Analyst, Money and markets
Ratings and stock chart updated on April 12, 2022.
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