Wall Street Zen Upgrades Thermon Group to Strong-Buy Rating

Equities research analysts at Wall Street Zen have upgraded shares of Thermon Group (NYSE:THR) from a “buy” rating to a “strong-buy” rating. This change was announced in a report released on October 29, 2023. In a separate analysis, Weiss Ratings maintained a “hold (c)” rating for the company’s stock in a report dated October 30, 2023. Currently, one analyst has rated the stock with a Hold designation, resulting in an average rating of “Hold,” according to MarketBeat.com.

The stock opened at $34.96 on Friday, reflecting a significant shift in investor sentiment. The company boasts a market capitalization of $1.15 billion and has demonstrated consistent performance, with a price-to-earnings (PE) ratio of 22.13. Over the past year, Thermon Group has experienced a low of $23.05 and a high of $36.14. The company also shows solid financial stability, with a quick ratio of 1.49 and a current ratio of 2.43, alongside a debt-to-equity ratio of 0.23.

Thermon Group recently reported its earnings results on November 6, 2023, revealing earnings per share (EPS) of $0.55 for the quarter. This figure surpassed the consensus estimate of $0.36 by $0.19. The company reported revenue of $131.72 million, exceeding analyst expectations of $119.43 million. The 12-month return on equity stands at 12.65%, with a net margin of 10.89%. Notably, revenue increased by 14.9% compared to the same period last year, during which the company earned $0.38 EPS.

Looking ahead, Thermon Group has set its fiscal year 2026 guidance at an EPS range of 2.00-2.15, while analysts project an EPS of $1.88 for the current fiscal year.

Institutional Investment Trends

Recent trading activity indicates significant interest from institutional investors. CWM LLC increased its position in Thermon Group by 68.9% during the first quarter, acquiring an additional 376 shares to bring its total to 922 shares, valued at approximately $26,000. Additionally, the Canada Pension Plan Investment Board initiated a new stake in the second quarter, estimated at $31,000.

Further investment activity includes Assetmark Inc., which raised its holdings in Thermon Group by 68.1% during the third quarter, now owning 1,530 shares valued at about $41,000. The State of Alaska Department of Revenue and the State of Wyoming also added new positions in the company, valued at approximately $48,000 and $59,000, respectively. Collectively, hedge funds and institutional investors hold 99.76% of Thermon Group’s stock.

Thermon Group Holdings, Inc. specializes in engineered industrial process heating solutions for various industries across multiple regions, including the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. The company’s offerings include heat tracing products, steam heating solutions, controls, monitoring software, instrumentation, project services, and temporary electrical power distribution and lighting solutions.

As Thermon Group continues to gain recognition among analysts and investors alike, its evolving financial landscape and strategic positioning in the industrial sector reflect a promising outlook for the company.