Honeywell's sales are still down compared to 2019, but they've rebounded substantially over the past year. The year-over-year comparisons look incredible, but should be taken with a grain of salt considering the weakness of last year's second quarter. Raking in the free cash flowĭaniel Foelber (Honeywell): Honeywell reported Q2 2021 earnings on Friday, blowing expectations out of the water and raising its full-year guidance. If and when it takes off - I think it will be sooner rather than later - PTC is ideally placed to be a significant part of it. The pandemic has created a lot of interest in automation and digitization. ![]() That's driven by the digital transformation and management's strategy to make them available as software-as-a-service (SaaS) options. In addition, management expects PTC's "core" portfolio of computer-aided design (CAD) and product lifecycle management (PLM) solutions to grow at a high-single-digit to low-double-digit rate over the medium term. Growth is the right word because management sees its IoT and AR solutions growing at a 30% plus annual rate over the medium term. Those two solution areas make up what PTC's management calls its "growth" product portfolio. Also, its augmented reality (AR) solution (Vuforia) enables technicians to service equipment without even being present, and it digitally overlays information on physical assets to improve the working environment. PTC plays to the market with its IoT platform (ThingWorx) that connects the physical asset to the digital world. The cost savings to the operator can be significant. Think of an electricity-producing gas turbine, a bottling plant, or an aircraft engine constantly working and creating data that allows operators to better predict how and when machinery needs servicing. This works through the collection of a mass of data from the physical asset via web-enabled sensors. The twin can then be used to model the performance of the physical asset predictively. In reality, industrial companies are in the early innings of the so-called "fourth industrial revolution." It's a fancy title, but the movement toward digitization and Internet of Things (IoT) connectivity is real.įor example, physical assets can be replicated virtually via a "digital twin" by users. Lee Samaha (PTC): The industrial software company is at the cutting edge of the ongoing revolution in the industrial sector. If Hyzon succeeds over the coming months in delivering on its projections, investors may embrace the stock as they had Nikola's stock in its early days on the market. Last year's rise of Nikola's stock illustrates how the market is eager to embrace manufacturers of heavy-duty trucks that don't fill up at ordinary gas stations meanwhile, the stock's fall shows how investors' loyalty isn't absolute. In 2025, for example, Hyzon projects revenue of $3.3 billion and EBITDA of $505 million. Should the company succeed in hitting these targets, investors may very well drive the stock considerably higher (especially since Nikola slashed its 2021 guidance from $150 million to $30 million) as it could instill confidence that the company is on the road to achieving its ambitious targets in the coming years. ![]() During a recent business update, management reaffirmed the company's 2021 sales guidance: delivery of 85 vehicles and revenue of $37 million. With its parent company and partners, Hyzon succeeded in delivering vehicles to customers in 2020, and it anticipates doing the same in 2021. Unlike Nikola, Hyzon foresees fuel-cell vehicles rolling off the assembly line this year. This resistance, I think, is one of the main reasons why Hyzon's stock has performed so poorly during its first week of trading.īut Hyzon is no Nikola. ![]() After the stock's wild ride over the past year, many investors may be wary about hopping on board with another stock of its ilk. Hold on - don't head for the exit ramp just yet. Look down the road though, and it's quite possible that Hyzon could motor ahead in the coming months.Ī manufacturer of fuel cell-powered commercial vehicles, Hyzon Motors is a direct competitor of Nikola ( NKLA 1.90%). Unfortunately for those who decided to hitch a ride with Hyzon, it's been a rocky road so far shares closed 15% lower on June 19 - its first day of trading after the merger was completed - and the stock failed to fully bounce back during the week. The company's stock has only been trading for a few days since completing its merger with the SPAC Decarbonization Plus Acquisition. Scott Levine (Hyzon Motors ): If Hyzon Motors isn't a name you remember seeing among the other usual fuel cell suspects, it's not that surprising. This fuel cell stock could move into the fast lane
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