Kadant to Acquire voestalpine BÖHLER Profil

What Happened?

A number of stocks jumped in the afternoon session after markets rotated out of tech names to position themselves for a massive injection of government spending. 

The sector was ignited by President Trump's call for a $1.5 trillion defense budget for 2027, a significant increase that sent defense contractors surging. Northrop Grumman jumped over 10% and Lockheed Martin gained nearly 8%, acting as the primary engine for the sector's outperformance.Beyond the immediate defense rally, the industrial sector benefited from a broader stabilization in energy costs, with crude prices rebounding. This combination of policy-driven demand and stabilizing input costs made heavy industry an attractive destination.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• General Industrial Machinery company Albany jumped 5.3%. Is now the time to buy Albany? Access our full analysis report here, it’s free.
• General Industrial Machinery company L.B. Foster jumped 3.3%. Is now the time to buy L.B. Foster? Access our full analysis report here, it’s free.
• General Industrial Machinery company Kadant jumped 5.7%. Is now the time to buy Kadant? Access our full analysis report here, it’s free.
• General Industrial Machinery company Illinois Tool Works jumped 3%. Is now the time to buy Illinois Tool Works? Access our full analysis report here, it’s free.
• General Industrial Machinery company Columbus McKinnon jumped 3.4%. Is now the time to buy Columbus McKinnon? Access our full analysis report here, it’s free.

Zooming In On Kadant (KAI)

Kadant’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock gained 4.7% on the news that the Federal Reserve lowered its benchmark interest rate by a quarter-percentage point, signaling a more accommodative monetary policy. 

This dovish action, combined with highly accommodating signals from Chair Jerome Powell and the Federal Open Market Committee (FOMC), sent the Dow Jones Industrial Average and S&P 500 surging.The market's bullish reaction was rooted in several key takeaways from the Fed's announcement. Most significantly, the central bank confirmed it would begin expanding its balance sheet by buying short-term bonds, a move that injects critical liquidity and lowers short-term Treasury yields. 

Furthermore, the Fed signaled a shift in priority by removing language that described the labor market as "remaining low," suggesting it would be more focused on supporting economic growth. While the Fed's official forecast projected only one cut for the next year, traders immediately priced in the expectation of more aggressive easing, banking on at least two rate reductions. This widespread anticipation of sustained, low borrowing costs and the virtual certainty that rate hikes would be off the table boosted corporate valuations and created powerful momentum for the equity market rally.

Kadant is up 8.6% since the beginning of the year, but at $310.93 per share, it is still trading 22% below its 52-week high of $398.39 from February 2025. Investors who bought $1,000 worth of Kadant’s shares 5 years ago would now be looking at an investment worth $2,098.

American Outdoor Brands delivered third-quarter results that were well received by the market, driven by strong execution in its core brand portfolio and a dynamic channel mix. Management highlighted robust sell-through at key retail partners and a notable 4% year-over-year increase in point-of-sale activity, despite broader industry foot traffic declines. CEO Brian Murphy credited “efficiently managing tariffs, customer ordering dynamics, and cost reduction opportunities” as factors that helped offset a challenging retail environment. Expansion into new retail placements, particularly for the Caldwell and BOG brands, further supported channel momentum.

Is now the time to buy AOUT? Find out in our full research report (it’s free for active Edge members).

American Outdoor Brands (AOUT) Q3 CY2025 Highlights:

• Revenue: $57.2 million vs analyst estimates of $50.92 million (5% year-on-year decline, 12.3% beat)
• Adjusted EPS: $0.29 vs analyst estimates of $0.20 (48.7% beat)
• Adjusted EBITDA: $6.48 million vs analyst estimates of $4.01 million (11.3% margin, 61.5% beat)
• Operating Margin: 3.7%, down from 5.1% in the same quarter last year
• Market Capitalization: $96.92 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From American Outdoor Brands’s Q3 Earnings Call

• Matthew Koranda (ROTH Capital): Asked about the visibility into point-of-sale (POS) data and which brands outperformed. CEO Brian Murphy explained that about 60% of revenue is tracked via POS systems, with outdoor lifestyle brands, particularly Caldwell, outperforming shooting sports.

• Matthew Koranda (ROTH Capital): Inquired about the disconnect between strong POS results and the forecasted sales decline, questioning if inventory overhang or retailer order timing played a role. Murphy noted retailers are managing lower inventory levels and varying their order timing based on seasonality and available capital.

• Matthew Koranda (ROTH Capital): Asked how the company plans to address softness from a large e-commerce customer. Murphy stated that as traditional retailers grow their online channels, volatility from pure e-commerce partners should diminish over time.

• Doug Lane (Water Tower Research): Questioned the timing of tariff mitigation benefits and whether implementation is complete. CFO Andy Fulmer confirmed mitigation actions are in place, but benefits will be realized gradually as inventory turns and cost concessions take effect.

• Mark Smith (Lake Street Capital): Sought details on new product development and expansion into new segments. Murphy highlighted continued investment in innovation and upcoming SHOT Show launches, focusing on ecosystem expansion and gamification within core brands.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will watch (1) the pace and market reception of new product introductions, especially at SHOT Show, (2) evidence that tariff mitigation actions are translating into improved margins as inventory cycles progress, and (3) stabilization in retailer order patterns and inventory management strategies. The effectiveness of cost controls and the company’s ability to maintain consumer engagement across channels will also be key indicators.

American Outdoor Brands currently trades at $7.71, in line with $7.72 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including L.B. Foster and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 15 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

L.B. Foster

Founded with a $2,500 loan, L.B. Foster is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

L.B. Foster reported revenues of $138.3 million, flat year on year. This print fell short of analysts’ expectations by 10.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.

John Kasel, President and Chief Executive Officer, commented, "We continued on a favorable trend in the third quarter, although the modest sales growth resulted in lower profitability compared to last year's high point realized in Q3. Sales were up 0.6%, while Adjusted EBITDA was down 7.9% driven primarily by lower margins for Precast Concrete within Infrastructure. Rail margins were also slightly lower, but this was primarily volume-timing related. With the improved customer demand and higher backlog in place, we expect a strong fourth quarter for both segments."

Interestingly, the stock is up 5.3% since reporting and currently trades at $28.86.

Read our full report on L.B. Foster here, it’s free for active Edge members.

Best Q3: Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year, outperforming analysts’ expectations by 9.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 1% since reporting. It currently trades at $31.96.

Is now the time to buy Hillenbrand? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.2% since the results and currently trades at $51.24.

Read our full analysis of Albany’s results here.

Icahn Enterprises

Founded in 1987, Icahn Enterprises is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year. This number beat analysts’ expectations by 4.3%. Overall, it was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 4.6% since reporting and currently trades at $7.75.

Read our full, actionable report on Icahn Enterprises here, it’s free for active Edge members.

Kadant

Headquartered in Massachusetts, Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

Kadant reported revenues of $271.6 million, flat year on year. This result topped analysts’ expectations by 4.2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 3.6% since reporting and currently trades at $288.19.

Read our full, actionable report on Kadant here, it’s free for active Edge members.

Genesco’s third quarter results were met with a sharp negative market reaction, reflecting investor concerns over profitability despite meeting revenue expectations. Management identified stronger back-to-school sales at Journeys and ongoing store optimization as key drivers, but acknowledged that heightened promotional activity in the UK and headwinds from tariffs pressured gross margins. CEO Mimi Eckel Vaughn stated that Schuh faced "heightened promotional activity" while the exit of licenses in Genesco Brands Group and the impact of tariffs added further margin pressure.

Is now the time to buy GCO? Find out in our full research report (it’s free for active Edge members).

Genesco (GCO) Q3 CY2025 Highlights:

• Revenue: $616.2 million vs analyst estimates of $617.5 million (3.3% year-on-year growth, in line)
• Adjusted EPS: $0.79 vs analyst expectations of $0.86 (8.1% miss)
• Adjusted EBITDA: $26.27 million (4.3% margin, 12.3% year-on-year growth)
• Management lowered its full-year Adjusted EPS guidance to $0.95 at the midpoint, a 36.7% decrease
• Operating Margin: 2.1%, in line with the same quarter last year
• Locations: 1,245 at quarter end, down from 1,302 in the same quarter last year
• Same-Store Sales rose 3% year on year (6% in the same quarter last year)
• Market Capitalization: $256.9 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Genesco’s Q3 Earnings Call

• Mitch Kummetz (Seaport Research): asked for clarity on Journeys’ fourth quarter comp expectations. CEO Mimi Eckel Vaughn confirmed positive comps are anticipated, driven by strong store performance but moderated e-commerce, and highlighted ongoing store closures to improve productivity.
• Joseph Vincent Civello (Truist Securities): sought insight into demand trends between athletic and canvas footwear. Vaughn explained athletic styles are seeing increased year-round demand and innovation, while canvas is less in demand with limited innovation expected.
• Mantero Valentino Moreno-Cheek (Jefferies): questioned the strategy for expanding Journeys’ brand portfolio. Vaughn said diversification is key, with new brands like HOKA and Nike supporting growth, though initial volumes start small and build over time as consumer preferences evolve.
• Mantero Valentino Moreno-Cheek (Jefferies): also asked about gross margin improvement levers. Vaughn and CFO Sandra Harris cited the exit of one-time license liquidations and ongoing actions at Schuh as main drivers, while acknowledging tariffs will remain a headwind.
• Mantero Valentino Moreno-Cheek (Jefferies): inquired about marketing spend effectiveness. Vaughn noted a shift from performance to brand marketing, with campaigns like ‘Life on Loud’ and the Peyton Manning partnership aimed at boosting awareness and customer acquisition.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will track (1) the pace of recovery and margin improvement at Schuh as inventory and promotional strategies are adjusted, (2) continued progress in Journeys’ store remodel program and new brand partnerships, and (3) the impact of tariffs and completion of license liquidations on gross margins. We will also monitor the effectiveness of expanded marketing campaigns and new product introductions in driving customer traffic and sales.

Genesco currently trades at $24.01, down from $35.15 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).

Methode Electronics' third quarter was marked by continued operational challenges, with revenue declining notably year over year. Management attributed the sales contraction to ongoing headwinds in automotive and delayed program launches, particularly in the electric vehicle segment. CEO Jonathan DeGaynor highlighted that, “our EV exposure is not just in North America, it's in Europe and Asia,” and stressed the company has already absorbed much of the impact from canceled and delayed launches. The company’s efforts to improve plant performance, especially in Egypt and Mexico, helped deliver sequential improvements, but overall margin pressures persisted.

Is now the time to buy MEI? Find out in our full research report (it’s free for active Edge members).

Methode Electronics (MEI) Q3 CY2025 Highlights:

• Revenue: $246.9 million vs analyst estimates of $237.7 million (15.6% year-on-year decline, 3.9% beat)
• Adjusted EPS: -$0.19 vs analyst estimates of -$0.20 (in line)
• Adjusted EBITDA: $17.6 million vs analyst estimates of $15.27 million (7.1% margin, 15.2% beat)
• The company reconfirmed its revenue guidance for the full year of $950 million at the midpoint
• EBITDA guidance for the full year is $75 million at the midpoint, above analyst estimates of $73.53 million
• Operating Margin: 1.6%, down from 3.2% in the same quarter last year
• Market Capitalization: $241.5 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Methode Electronics’s Q3 Earnings Call

• Luke Junk (Baird) asked about the relative trends in data center versus EV sales and how Power Solutions results break down. CEO Jonathan DeGaynor clarified data center revenues are performing in line with expectations and EV headwinds have already been absorbed.
• Luke Junk (Baird) questioned whether the second half improvement will be driven by margins or volume. DeGaynor and CFO Laura Kowalchik explained that increased plant efficiency and margin conversion, especially in Egypt and Mexico, are key drivers for the expected improvement.
• John Franzreb (Sidoti & Company) pressed on whether management is comfortable with the lower or upper end of guidance, given ongoing volatility. DeGaynor noted continued caution, citing external risks like tariffs and supply chain turbulence as reasons for maintaining a wide guidance range.
• John Franzreb (Sidoti & Company) inquired about the drivers behind sequential improvements in industrial operating profit. DeGaynor attributed gains to improved plant performance and cost control, not just data center sales.
• Gary Prestopino (Barrington Research) asked for details on upcoming program launches and segment exposure. DeGaynor confirmed most new launches are power-related, covering both EV and hybrid applications, and are concentrated in Mexico and EMEA.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) the ongoing operational improvements in Egypt and Mexico for sustainable margin expansion, (2) the success of data center Power Solutions and the vendor-managed inventory rollout as a potential growth offset to weaker automotive, and (3) any resolution or escalation of external risks such as tariffs or supply chain disruptions. We will also track the pace and profitability of new program launches across core segments.

Methode Electronics currently trades at $6.80, down from $8.69 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).

What Happened?

Shares of industrial equipment manufacturer Kadant jumped 3.3% in the afternoon session after the stock appeared to continue its recent upward trend, driven by technical factors rather than specific company news. The shares had already risen nearly 12% over the previous two weeks, creating positive momentum. Technical indicators also flashed a 'Buy' signal, suggesting that the stock's trading patterns were favorable. This indicated that the climb was likely fueled by market sentiment and sustained buying interest, as no fundamental news or major announcements were reported to explain the move.

After the initial pop the shares cooled down to $290.07, up 3.4% from previous close.

Is now the time to buy Kadant? Access our full analysis report here.

What Is The Market Telling Us

Kadant’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock dropped 2.4% on the news that the company reported mixed third-quarter results, with a weak forecast for the upcoming quarter overshadowing beats on revenue and earnings. While Kadant's revenue of $271.6 million and adjusted earnings per share of $2.59 both surpassed analyst expectations, investors seemed more concerned about future performance. The company’s operating margin declined to 15.7% from 18% in the same quarter of the previous year, indicating reduced profitability. Adding to the concerns, Kadant provided fourth-quarter revenue guidance of $275 million at the midpoint, which fell short of analysts' estimates of $279.6 million. The market's negative reaction pushed the stock to a new 52-week low.

Kadant is down 16.4% since the beginning of the year, and at $290.07 per share, it is trading 29.6% below its 52-week high of $411.80 from December 2024. Investors who bought $1,000 worth of Kadant’s shares 5 years ago would now be looking at an investment worth $2,242.