Our Stock of the Week is CECO Environmental (CECO). CECO is an industrial company serving the industrial air, water, and energy transition markets. CECO offers improved air and water quality, optimized emissions management, and increased energy efficiency for highly engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, EV production, polysilicon fabrication, etc.
We originally picked CECO as a Stock of the Week, around $14.25, back in January 2023. The stock made several acquisitions in the ensuing year and raised guidance several times. Currently, the company is expected to increase EPS by 30% in 2024 from $0.70 to $1.00. The company has consistently beat expectations and has done a particularly good job of managing expectations.
Five analysts cover the stock with an average price target of $22.50. The lowest target is $22, and the highest is $24.
Technically, the stock has pulled back to support at its 50-day simple moving average and the bottom of the trading range that has formed since third-quarter earnings.
CECO is a small cap and trades thinly. As always, we will not chase strength on Monday morning but will look to aggressively trade it as market conditions develop.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in CECO. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
