The Chaikin Power Gauge RatingTM for Actuant Corporation ATU is bullish due to strong earnings performance and positive expert opinions. ATU’s earnings performance is strong as a result of consistent earnings over the past 5 years. Expert opinions about ATU are positive which is evidenced by analysts revising earnings estimates upward.
Financial Metrics Rating – Neutral 
ATU’s financial metrics are neutral. The company yields a high return on shareholder’s equity and is carrying too much long-term debt relative to its industry group. The rank is based on a high long-term debt to equity ratio relative to its industry group, high return on equity, high price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Bullish
ATU’s earnings performance has been strong. The company has a stable 5 year earnings trend and has outperformed analysts’ earnings estimates. The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Neutral
Price and volume activity for ATU is neutral. ATU has outperformed the S&P 500 over 26 weeks and is in a decelerating price trend compared to 4 months ago. The rank for ATU is based on its price strength versus the market, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Bullish
Expert opinions about ATU are positive. Analysts are raising their EPS estimates for ATU and analyst’s opinions on ATU have been more positive recently. The rank for ATU is based on analysts revising earnings estimates upward, a high short interest ratio, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Machinery industry group.
