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How Has Lincoln Electric’s Stock Fared ahead of Its 1Q16 Earnings?

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Lincoln Electric’s stock performance

Lincoln Electric’s (LECO) stock has been in a downward trend since March 2015. This can be attributed to the softness in demand and weakness in the oil and gas sector and US export markets.

In 2015, LECO’s earnings were impacted by unfavorable foreign currency, pension settlements, and contingent consideration related to an acquisition. However, the stock seems to be on an uptrend since the start of 2016, and it has gained 22% since January 2016. In comparison, the Industrial Select Sector SPDR ETF (XLI) has gone up by ~7% since January 2016.

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Lincoln Electric’s peer performance

From the beginning of 2016 through April 7, industrial stocks have been performing well due to hopes of 2H16 being better than 1H16.

Year-to-date, shares of RBC Bearings (ROLL), Timken (TKR), Blount International (BLT), and Stanley Black & Decker (SWK) have generated returns of 14.1%, 15.0%, 1%, and 0%, respectively.

About Lincoln Electric

For over 120 years, Lincoln Electric (LECO) has designed and manufactured welding and cutting products. It has a global position in the brazing and soldering alloy market.

LECO operates in 47 manufacturing locations and provides a diverse range of products. The company’s products include arc welding power sources, wire feeding systems, robotic welding packages, and fume extraction equipment used in oxy-fuel welding and cutting.

LECO broadly operates in five segments: North America, South America, Europe Welding, Asia-Pacific Welding, and Harris Group Products. Each segment has strong brands with leading positions within their respective markets.

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