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Regal Rexnord Corp Receives Mixed Rating from Analysts

Regal Rexnord Corp (RRX) receives a mixed rating from analysts based on its growth potential and fundamentals. The company scores 54% under the Growth Investor model, highlighting both strengths and weaknesses in key financial metrics.

Date: 
AI Rating:   5
Analysis of Regal Rexnord Corp

Regal Rexnord Corp (RRX) has been evaluated based on various strategies focused on fundamental growth metrics. The score of 54% indicates reasonable to mild interest from analysts using the Growth Investor strategy.

The company has shown strength in several key areas:

  • P/E Ratio: The company passes this criterion, which suggests that the stock is reasonably valued based on its earnings.
  • Revenue Growth Relative to EPS Growth: This parameter has also been passed, indicating that revenue growth is keeping pace with earnings growth.
  • Sales Growth Rate: Regal Rexnord shows a commendable sales growth rate, emphasizing that the company is able to increase sales effectively.
  • Current Quarter Earnings: The company reported earnings that were favorable in the current quarter as compared to previous metrics.
  • Quarterly Earnings Year-Over-Year: Positive indication as this year’s quarterly earnings exceeded the corresponding quarter from the previous year.
  • Earnings Growth Rate for Past Several Quarters: This reflects positive earnings consistency over multiple quarters.
  • Insider Transactions: The favorable reports indicate that it may have positive insights from insiders, which typically provides a good signal for investors.

However, the evaluation has revealed several weaknesses:

  • Positive Earnings Growth Rate for Current Quarter: This was marked as a fail, indicating a lack of expected positive growth in the most recent earnings.
  • EPS Growth for Current Quarter Compared to Last 3 Quarters: This was another fail, pointing out that EPS growth did not outpace previous quarters.
  • EPS Growth for Current Quarter vs. Historical Growth Rate: Failure on this metric indicates a slowdown in growth compared to historical performance.
  • Earnings Persistence: This metric suggests inconsistency in earnings, which could raise concerns for investors.
  • Long-Term EPS Growth: Similarly, long-term growth is not looking favorable.
  • Total Debt/Equity Ratio: The fail here indicates that the company may have higher debt levels relative to its equity, which could be a risk.

In summary, while Regal Rexnord Corp shows several positive fundamentals, the weaknesses noted, particularly in earnings growth metrics, may lead to downward pressure on stock prices if trends do not improve. Potential investors should weigh these factors carefully.

Stocks:  RRX