Lincoln Electric’s stock performance
Lincoln Electric’s (LECO) stock has been trading sideways since April 2016. This can be attributed to the softness in demand, as well as weakness in the oil and gas sector and the US export markets.
From April 1–June 28, 2016, LECO fell by 2.1% and the Industrial Select Sector SPDR ETF (XLI) fell by 2.0%.
In 2015, Lincoln Electric’s earnings were impacted by unfavorable foreign currency, pension settlement, and contingent consideration related to an acquisition. However, the stock has seemed to rise since 2016 began.
LECO has gained 11.6% since January 2016. In comparison, the Industrial Select Sector SPDR ETF (XLI) has risen by ~3.6% for the same period.
Lincoln Electric’s peer performance
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.
The company broadly operates in three segments: Americas Welding, International Welding, and The Harris Product Group. These segments contributed 69%, 21%, and 10%, respectively, to total revenues in 2015. Each segment has strong brands with leading positions within their respective markets.