Timken shares have surged 63.4% over the past six months to a new 52-week high of $141, but analysts at StockStory recommend sitting on the sidelines. They cite three concerns: organic revenue has declined an average of 1.6% annually over the past two years, earnings per share have grown only 5.1% annually over five years, and return on invested capital has fallen by 3.1 percentage points per year. The stock now trades at 23 times forward earnings, which they view as pricing in too much good news. They suggest investors look elsewhere, such as a fast-growing restaurant franchise.
Timken CompanyAnalysts recommend selling due to declining organic revenue, slow EPS growth, falling ROIC, and high valuation
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