LECO Stock Analysis — Lincoln Electric Holdings
Sector: Industrials
AI Verdict
LECO is cheap for the growth you're getting if its proprietary welding tech and consumables moat keep driving earnings as analysts expect.
Competitive Moat
Lincoln Electric dominates welding equipment and consumables with a global distribution network and deep customer relationships in industries like automotive and construction. Its moat comes from proprietary welding technologies and a consumables business that locks in repeat purchases.
Summary
LECO stands out for its 34.7% forward EPS growth expectation, far above typical industrials.
Where It Stands
LECO trades at 21.1x next year's earnings, a slight premium to the 20x industrials median, but with 34.7% EPS growth expected and a trailing PEG of 0.82 indicating growth supports the multiple.
Key Metrics
- Trailing P/E: 28.4x
- Forward P/E: 21.1x
- PEG Ratio: 0.82
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $310.00
- 52-Week Low: $216.22
Analyst Consensus
12 Buy · 7 Hold · 0 Sell (19 analysts)
Bull Case
With analysts forecasting 34.7% EPS growth and a forward P/E of 21.1x, you're getting high growth at a price in line with the sector.
Bear Case
If the forward P/E compresses to the industrials median of 20x, the stock would lose about 5% on valuation alone.
Catalyst to Watch
Watch for quarterly earnings beats or misses versus the 34.7% EPS growth target to confirm or challenge the growth story.