CECO Environmental Corp. (NASDAQ: CECE) is a company that supplies industries with fluid handling and air quality management systems, at a global level. The rise CECE stock has seen in the last few months is spectacular, especially considering the bearish conditions surrounding the market.
New Management Proves to be a Blessing for CECO Environmental.
The climb seen in the price of CECE stock is extraordinarily remarkable. In the last six months, when the S&P 500 dipped by 10%. CECE saw a climb of almost 70%. This turnaround comes after the company transformed and restructured its entire business model with the coming of a fresh management team, which is well aligned to shareholders’ interests, given the 16% insider ownership.
The shift comes in CECO restructuring to become a short-cycle project business, as opposed to a long-cycle one, which has resulted in substantially higher profit margins. This can be reflected in its basic EPS jump in June 2022 to $0.13, compared to the prior year’s figure of a mere $0.01.
Looking Ahead at CECE
It is evident that CECE stock has been enjoying a tremendous climb as a result of its business turnaround. This is also sees support from secular tailwinds, and a much more predictable income stream.
Analysts have pointed out that CECE stock could potentially continue double-digit growth throughout the upcoming years. This is primarily due to the superior environmental and pollution-related solutions that CECO offers to the various industries it serves. As a result, the stock is an extremely sustainable one, to bet on.
The turnaround tale of CECE stock is unlike any other, given how its new management has turned the company into a rapid growth rocket. This has clearly yielded a fundamental success, as well as a tremendous price escalation.